When auditing Cash if detection risk is set to low, the auditor is likely to: 1 Only
Question:
When auditing Cash if detection risk is set to low, the auditor is likely to: 1 Only test controls such as the client's internal controls over the preparation of bank reconciliations. Only scan bank reconciliations and test items on bank reconciliations on a sample basis. Send out confirmations to the bank, test bank reconciliation controls, and prepare the bank reconciliation using a cutoff bank statement obtained from the bank to examine wire transfers between accounts at year end. Only confirm bank balances with the Bank. You are finalizing your approach to auditing accounts receivable and the partner on the engagement e-mailed you the following questions. Reply as to whether the following statements are true or false with respect to the confirmation process when applied to accounts receivable: "Negative confirmations provide more reliable evidence than blank confirmations." True False
Auditing a risk based approach to conducting a quality audit
ISBN: 978-1133939153
9th edition
Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg