Explain the relationships among the initial assessed control risk, tests of controls and substantive tests of transactions for cash disbursements, and the tests of details of cash balances. Give one example in which the conclusions reached about internal controls in cash disbursements will affect the tests of cash balances.
Answer to relevant QuestionsExplain why auditors’ reports are important to users of financial statements and why it is desirable to have standard working. Explain why an auditor compares the “date of deposit according to the books” to the date of disbursement according to the books” on an interbank transfer schedule to detect kiting.Five months after issuing an unqualified audit opinion and an unqualified opinion on internal controls for the audit of the year ended December 31, 2013, for a large publicly traded client, the client and the auditor become ...With greater frequency, organizations are issuing corporate social responsibility (CSR) reports that describe how they are engaging in socially responsible activities. Many believe that users will increasingly want ...Evaluate the necessity of following the practice described by an auditor: “In confirming bank accounts, I insist upon a response from every bank the client has done business with in the past 2 years, even though the ...
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