Assume that you have finished your substantive analytical procedures in the area of revenue. You used trend analysis and a reasonableness test and conducted the procedures at a disaggregated level. You are very pleased that your expectations are almost identical to what the client has recorded. Specifically, revenue increased in line with prior period increases and with the industry increases. You let your senior know that you likely do not have any additional work to perform. Your senior asks you to reconsider your conclusion. What is likely the primary concern of your senior?
Answer to relevant QuestionsReview Exhibit and describe how the two audit approaches presented in the Exhibit differ. What factors would lead to such a difference?What factors should the auditor consider when evaluating the professional qualifications of a specialist?In August 2011, the PCAOB barred two former Ernst & Young LLP (E&Y) employees from auditing public companies, alleging they provided misleading documents to PCAOB inspectors who were evaluating the audit firm's work. One ...Obtain a copy of Accounting and Auditing Enforcement Release (AAER) No. 3146, issued by the SEC on June 24, 2010.a. Identify the audit evidence deficiencies described in the release.b. In what ways did the auditor fail to ...MULTIPLE-CHOICE QUESTIONS1. Which of the following characteristics would lead the auditor to assess control risk at a higher level?a. It is difficult for the auditor to determine or gain access to the organization or ...
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