Johnny is the other senior auditor on the Propel Aviation audit. He must plan the audit procedures, but his responsibility is for the liability, revenue, and expense accounts instead of assets. Johnny must first consider the relevant management assertions for each account. Then, he must determine which procedures will be most effective in testing the balances.
Required:

For each of the following items, list (1) the most important management assertions and (2) the most effective procedures to test the account:
(a) Current payables
(b) Long-term debt
(c) Revenues and expenses

Answer rating: 100% (QA)

a Current payables The primary audit risk is that they omitted or u... View the full answer