Why does the audit testing hierarchy begin with tests of controls and substantive analytical procedures?

Question:

Why does the “audit testing hierarchy” begin with tests of controls and substantive analytical procedures?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Auditing and Assurance Services A Systematic Approach

ISBN: 978-1259162343

9th edition

Authors: William Messier, Steven Glover, Douglas Prawitt

See More Books

Question Posted: Sep 22, 2014 09:16 AM

See More Questions

An auditor may perform tests of controls and substantive procedures simultaneously as a matter of audit convenience. However, the substantive procedures and sample size are, in part, dependent upon...
Diane Smith, CPA, performed tests of controls and substantive tests of transactions for sales for the month of March in an audit of the financial statements for the year ended December 31, 2011....
Diane Smith, CA, performed tests of controls and substantive tests of transactions for sales for the month of September in an audit of financial statements for the year ended 30 June 20X1. Based on...
Given the definition of the radian angle: S l Where [s] = m, [4] = m What are the dimensions of angles? A. No way to know B. meters, m C. 1 (or no units/dimensions) D. seconds, S E. kilograms, kg
Why does signing a nominal-wage contract require that firms and employees calculate a rational price expectation of the price level?
How will you review your subordinates performance regularly and provide them with feedback about their work?
Consider the patient satisfaction data in Table B.17. For the purposes of this exercise, ignore the regressor "Medical-Surgical." Perform a thorough analysis of these data. Please discuss any...
Kleppel et al. (2004) report on a study of wetlands in upstate NewYork. Four wetlands were selected for the study: Two of the wetlands drain watersheds from small towns and the other two drain...
Mega Corp., a semiweekly depositor, incurs a deposit liability on Wednesday, March 3 1 , of $ 9 9 , 0 0 0 . On Thursday, April 1 , it incurs an additional liability of $ 5 , 0 0 0 . When are these...
Harriet's Hats is a retailer who buys hats from a manufacturer and then sells them in its stores. The following information includes the company's December 31, 20Y8 Balance Sheet and the details of...
Discuss the relative reliability of the different types of audit procedures.
Consider the assurance bucket analogy. Why are some of the buckets larger than others for particular assertions or accounts?
A Ping-Pong ball weighs 2.6 g and has a diameter of 3.8 cm. It can be supported by an air jet from a vacuum cleaner outlet, as in Fig. P7.84. For sea level standard air, what jet velocity is required
Describe a system that is completely nonreal - time, that is, there are no bounds whatsoever for any response time. Do such systems exist in reality?
For whom should you, as a designer, prepare the software design description?
Consider a payroll processing system for an elevator company. Describe three different scenarios in which the system can be justified as hard, firm, or soft real - time.
Why is the cost of system maintenance high?
Give a concrete example of a case where it is beneficial to use a Mealy FSM instead of a Moore FSM for creating a formal part of software specifications.
The U.S. government began subsidizing U.S. cotton farmers in the twentieth century to allow them to stay in business. The purpose was to insulate them from fluctuating market prices that could...
In Exercises evaluate the limit, using LHpitals Rule if necessary. lim 07x cos x X
What is the Federal Open Market Committee? What is its main function?
Roger Royce, CPA, has encountered a situation that he thinks may pose a threat to his independence with respect to Watson, Inc., an audit client. The situation is not addressed by an independence...
Jenko Corp. is an audit client of the Phoenix office of Williams and Co., CPAs. Williams and Co. has offices in Arizona, including ones in Phoenix, Tucson, and Tombstone. For purposes of...
Tracy Smith, CPA, is in charge of the audit of Olympic Fashions, Inc. seven young members of the public accounting firms professional staff are working with Smith on this engagement, and several of...
1. What year are you preparing your students for? 1973? 1995? Provide evidence that your school's curriculum and the program you use are preparing your students for 2030? Are you even preparing them...
2 Classify each type of numerical data as discrete (D) or continuous (C). a number of homes with solar power b patients' body temperatures c sizes of the crowds at rock concerts d star ratings of...
What role does the use of either mimesis or abstraction play in each example? (Keep in mind that the concepts of mimesis and abstraction in the creative arts are defined and explored in the document...

Why does the audit testing hierarchy begin with tests of controls and substantive analytical procedures?

Question:

Step by Step Answer:

The audit testing hierarchy starts with tests of controls and substantive analytical procedures ...View the full answer

Auditing and Assurance Services A Systematic Approach

Students also viewed these Auditing questions