Question: List four analytical procedures that can be used to test
List four analytical procedures that can be used to test revenue- related accounts. What potential misstatements are indicated by each of these analytical procedures?
Answer to relevant QuestionsDescribe how the auditor verifies the accuracy of the aged trial balance.For each of the following situations based on SAB No. 101, indicate the audit evidence that should be obtained to determine whether revenue should be recognized or not in the current period. 1. Your client, Thomson Telecom, ...SEC Accounting and Auditing Enforcement Release (AAER) No. 108 specifies certain conditions or criteria that a bill and hold transaction of a public company should meet in order to qualify for revenue recognition. The AAER ...List two inherent risk factors that directly affect the purchasing process. Why should auditors be concerned about issues such as the supply of raw materials and the volatility of prices?You are the auditor for KPDZ Corporation. You gathered comparative information for inventory and accounts payable and calculated the days purchases in accounts payable.Required: Prepare a list of possible concerns that you ...
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