Question: In test of controls auditing why should auditors be more
In test of controls auditing, why should auditors be more concerned with the risk of assessing the control risk too low than with that of assessing it too high?
Answer to relevant QuestionsWhen auditing account balances, why is an incorrect acceptance decision considered more serious than an incorrect rejection decision? Auditor Magann was auditing the authorization control over cash disbursements. She selected cash disbursement entries made throughout the year and vouched them to paid invoices and cancelled cheques bearing the initials and ...The following Exhibit DC 10-4 gives auditor judgment and audit sampling results for six populations. Assume large population sizes.Required:a. For each population, did the auditor select a smaller sample size than is ...What is dual-direction testing of controls? What are the objectives of dual-direction testing in auditing the revenues, receivables, and receipts process?In the Audit 11.2 case, what information might have been obtained from each of the following: enquiries, detail test of controls procedures, observations, and confirmations?
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