The cost of an audit might be significantly reduced if the auditors relied upon a representation letter from the client instead of observing the physical counting of inventory. Would this use of representation letter be an acceptable means of reducing the cost of an audit?
Answer to relevant QuestionsList the factors that make up an organization’s control environment.What is meant by a local area network?When using attributes sampling, the auditors must estimate the expected population deviation rate. What sources are used to make this estimate?How can the auditors determine that all dividends applicable to marketable securities owned by the client have been received and recorded?Outline a method by which the auditors may test the propriety of cash discounts taken on accounts payable.
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