An auditor has analyzed additions to property and equipment for the year as follows: The auditor plans

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An auditor has analyzed additions to property and equipment for the year as follows:

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The auditor plans to substantiate all the additions above $10,000 and rely on analytical procedures for the remaining amount.

Required:

a. Is this audit approach acceptable?

b. Is there any detection risk associated with this approach?

c. Is there any sampling risk associated with this approach?

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Auditing Concepts And Methods A Guide To Current Auditing Theory And Practice

ISBN: 9780070099999

5th Edition

Authors: Mcgraw-Hill

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Question Posted: May 09, 2024 04:00 AM

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An auditor has analyzed additions to property and equipment for the year as follows: The auditor plans

Question:

Number of additions Range Dollar amount 5 Above $10,000 $ 90,000 25 22 20 1,000 to 9,999 60,000 $150,000

Step by Step Answer:

Auditing Concepts And Methods A Guide To Current Auditing Theory And Practice

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