What is a compensating control? Give some examples for finance and investment cycle accounts.
Answer to relevant QuestionsWhat are some of the specific relevant aspects of management’s control over the estimation process? What are some inquiries auditors can make?Define and give five examples of off- balance- sheet information. Why should auditors be concerned with such items?Which of the following approaches is most suitable for auditing the finance and investment cycle? a. Perform extensive tests of controls and limit substantive procedures to analytical procedures. b. Ignore internal controls ...The primary reason for preparing a reconciliation between interest- bearing obligations outstanding during the year and interest expense in the financial statements is to a. Evaluate internal control over securities. b. ...An audit team testing long- term investments would ordinarily use analytical procedures to ascertain the reasonableness of the a. Existence of unrealized gains or losses. b. Completeness of recorded investment income. c. ...
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