Explain the relationship between the methodology for designing tests of controls and substantive tests of transactions in

Question:

Explain the relationship between the methodology for designing tests of controls and substantive tests of transactions in Figure 13-5 (p. 429) and the methodology for designing tests of details of balances in Figure 13-7.

Figure 13-5

Figure 13-7

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Auditing And Assurance Services An Integrated Approach

ISBN: 9780135176146

17th Edition

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley

See More Books

Question Posted: Jun 17, 2020 01:10 AM

See More Questions

In performing tests of controls and substantive tests of transactions for the Oakland Hardware Company, Ben Frentz, a public accountant, is concerned with the internal verification of pricing,...
The following are steps in the methodology for designing tests of controls, substantive tests of transactions, and tests of details of balances for the payroll and personnel cycle: 1. Design tests of...
The following tests of controls and substantive tests of transactions audit procedures for acquisitions and cash disbursements are to be used in the audit of Ward Publishing Company. You concluded...
An LNC can detect alterations in the record by Select one: a. Examining notes written in the margin b. Looking through late entries for detailed explanations c. Finding a doctor's explanation that is...
Beginning students in accounting took a test and a computer anxiety score (CARS) was assigned to each student on the basis of their answers to nineteen questions on the test (see Table D.4 of the...
Jennifer Nantale is a new staff auditor on the audit engagement of Greenville Light & Sound, which is a publicly traded company with a calendar year end. The engagement team has completed its review...
Explain the ownership of and who can access a patients medical record.
Baker, CPA, was engaged to audit Mill Company's financial statements for the year ended September 30, 20X1. After obtaining an understanding of Mill's internal control structure, Baker decided to...
1. Construct a truth table for the following: a. out x'yz +(xyz)' b. out (x+z')(x+y')(y+z) 2. Simplify the following functional expressions using Boolean algebra and its identities. List the identity...
Analyzing a Contemporary Conflict Negotiation and conflict resolution. Identify and analyze a conflict situation that you have been involved with or have sufficient knowledge of to meet the...
Section 404(a) of the SarbanesOxley Act requires management of a public company to issue a report on internal control over financial reporting (ICOFR) as of the end of the companys fiscal year. Visit...
List the nine balance-related audit objectives in the verification of the ending balance in inventory and provide one useful audit procedure for each of the objectives.
Refer to Example 6. (A) Find n(T W), n(T W), n(W T), and n(T W). (B) Draw a Venn diagram with circles labeled T and W, indicating the numbers of elements in the subsets of part (A). Data from...
The __________ __________ __________ __________technique begins with an outrageous request that makes a subsequent, smaller request seem reasonable.
What are the skin senses, and how do they relate to the experience of pain?
Which of the following is not a separate legal entity? a. Proprietorship b. Sole proprietorship c. Corporation d. Partnership
Health psychologists are most likely to focus on which of the following problems with health care? a. Incompetent health-care providers b. Rising health-care costs c. Ineffective communication...
What are the major perspectives on psychological disorders used by mental health professionals?
Brights Patio Shop sells garden and patio furniture. Record the following transactions in the appropriate special journals using the special journal formats shown in Exhibit 7A1 found in the online...
For the following arrangements, discuss whether they are 'in substance' lease transactions, and thus fall under the ambit of IAS 17.
Identify the three categories of client objectives. Indicate how each objective may affect the auditor's assessment of inherent risk and need for evidence accumulation.
What is the purpose of the client's performance measurement system? How might that system be useful to the auditor? Give examples of key performance indicators for the following businesses: (1) A...
Define client business risk and describe several sources of client business risk. What is the auditor's primary concern when evaluating client business risk?
The trial balance for a company listed the following account balances at December 31, Year 1, the end of its fiscal year: cash, $36,000; accounts receivable. $31,000; Inventory, $45,000; equipment...
A corporation issues 13 %, 15-year bonds with a par value of $570,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 11%, which implies a selling price...
A production department reports the following conversion costs. Equivalent units of production for conversion total 436,000 units this period. Calculate the cost per equivalent unit of production for...

Explain the relationship between the methodology for designing tests of controls and substantive tests of transactions in

Question:

Understand internal control Assess planned control risk Determine extent of tests of controls* Design tests of controls and Audit procedures substantive tests Sample size of transactions to meet Items to select transaction-related audit objectives, including disclosures Timing

Step by Step Answer:

The approach to designing tests of controls and substantive tests ...View the full answer

Auditing And Assurance Services An Integrated Approach

Students also viewed these Business questions