What is a top down approach to planning an audit? What are the steps? How does this approach link the financial statements to ultimate audit program steps? Why does AS 5 direct the auditor to use this approach in assessing materiality?
Answer to relevant QuestionsWhen a control is tested at an interim date the following are things the auditor considers in deciding how much audit evidence must be obtained about the control during the roll forward period. How would each one affect the ...Philly Communications is the largest provider of telephone and cable service in Pennsylvania. During its yearend audit, the manager at Dell & Wayne, Philly’s independent audit firm determined that the appropriate amount ...Refer to Auditing in Action on Roll Forward Procedures featuring Shadow Company. Assume that Shadow has a significant amount of cash held in an interest-bearing bank account, and that the auditors performed substantive ...How can planning for the audit be affected by the work of the client’s internal auditors? By whether the company outsources any of its processes?What is meant by the terms tolerable misstatement and tolerable rate of error? How do they relate to materiality?
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