At 12 o’clock, when the plant whistle sounded, George Green, an assistant auditor, had his desk completely covered with various types of working papers. Green stopped work immediately, but not wanting to leave the desk with such a disorderly appearance, he took a few minutes to sort the papers into proper order, place them in a neat pile, and weight them down with a heavy paperweight. He then departed for lunch. The auditor-in-charge, who had been observing what was going on, was critical of the assistant’s actions. What do you think was the basis for criticism by the auditor-in-charge?
Answer to relevant QuestionsReply to the following questions relating to analytical procedures.a. Performing analytical procedures may help an auditor to:(1) Achieve audit objectives related to a particular assertion.(2) Develop an effective system of ...Many CPA firms are taking a business risk approach to audits. Define what is meant by business risk. Provide an example of a business risk that could result in a risk of material misstatement of the financial statements. Define and differentiate between a test of controls and a substantive procedure. A CPA has been asked to audit the financial statements of a nonpublic company for the first time. All preliminary discussions have been completed between the CPA, the company, the predecessor auditors, and all other ...In every audit engagement, the auditors should identify fraud risks that may require an audit response. Described below are four circumstances or factors that may create an increased risk of material misstatement of the ...
Post your question