You are responsible for developing training material for staff auditors on substantive sampling. After presenting it, staff
Question:
a. Is it always better to sample more items than fewer items?
b. When should I stratify a sample?
c. How do I decide whether to perform substantive tests or to use analytical procedures? Analytical procedures are much easier than substantive testing.
d. How do I convince the client that the likely misstatements are valid misstate ments? For the known misstatements, I can show the client the documents to explain the misstatements. I can't do this for likely misstatements, so it is harder to convince the client that the misstatements are valid.
e. Why do I put the misstatements I found on the proposed audit adjustment schedule if the tolerable misstatement is higher than the projected misstatement for the account I am auditing? Why can't I just ignore these misstatements?
f. Can I do all the substantive testing at year-end? How long will it take?
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Related Book For
Auditing and Assurance Services An Applied Approach
ISBN: 978-0073404004
1st edition
Authors: Iris Stuart
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