The six general audit procedures produce evidence about the principal management assertions in financial statements. However, some procedures are useful for producing evidence about certain assertions, while other procedures are useful for producing evidence about other assertions. The assertion being audited may influence the auditors’ choice of procedures.

Prepare a two-column table with the six general procedures listed on the left. Opposite each one, write the financial statement assertions most usefully audited by using each procedure.
Then provide a specific example of an account that would be found in the audit of a real estate company, and expand the general procedures to explain specifically how the evidence would be obtained for this auditee.

  • CreatedJanuary 09, 2015
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