Question: Explain the relationships among the initial assessed control risk, tests of controls and substantive tests of transactions for cash disbursements, and the tests of details

Explain the relationships among the initial assessed control risk, tests of controls and substantive tests of transactions for cash disbursements, and the tests of details of cash balances. Give one example in which the conclusions reached about internal controls in cash disbursements will affect the tests of cash balances. Discuss.

Step by Step Solution

★★★★★

3.33 Rating (165 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The appropriate tests for the ending balance in the cash accounts depend heavily on the initial asse... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

271-B-A-A-A-N (145).docx

120 KBs Word File

Students Have Also Explored These Related Auditing Questions!

Q:

In performing tests of controls and substantive tests of transactions for the Oakland Hardware Company, Ben Frentz, a public accountant, is concerned with the internal verification of pricing,...

Q:

Explain the difference between tests of controls and substantive procedures. How are the results of tests of controls related to decisions about the nature, timing, and extent of substantive...

Q:

The following tests of controls and substantive tests of transactions audit procedures for acquisitions and cash disbursements are to be used in the audit of Ward Publishing Company. You concluded...

Q:

Explain the relationships among the initial assessed control risk, tests of controls and substantive tests of transactions for cash disbursements, and the tests of details of cash balances. Give one...

Q:

1. In connection with an audit. vou are given the following worksheet: Required - a) Prepare a corrected reconciliation. (12marks) b) With performance materiality set at $300,000, use appropriate...

Q:

Explain the relationships among the initial assessed control risk, tests of controls and substantive tests of transactions for cash receipts, and the tests of details of cash balances.

Q:

Discuss the relationships among the initial assessed control risk, test of controls, and substantive tests of transactions for cash disbursements, and the tests of details of cash balances. Provide...

Q:

Discuss the relationships among the initial assessed control risk, test of controls, and substantive tests of transactions for cash disbursements, and the tests of details of cash balances. Provide...

Q:

Discuss the relationships among the initial assessed control risk, test of controls, and substantive tests of transactions for cash disbursements, and the tests of details of cash balances. Provide...

Q:

Discuss the relationships among the initial assessed control risk, test of controls, and substantive tests of transactions for cash disbursements, and the tests of details of cash balances. Provide...

Q:

How would you conduct training to meet the needs of the real estate agency? (Think about what types of WHS/OHS training may be required for workers in the agency)

Q:

In August 2002, a pricing dispute arose between the managers of some of the divisions of Zumwald AG. Mr. Rolf Fettinger, the company's managing director, had to decide whether to intervene in the...

Q:

Tax custodial fundsa. Are required to account for a government s collection and remittance of federal and state payroll taxes.b . Are used by a county s assessor to compute the amount of taxes due on...

Q:

Which of the statements best describes the concept of six-sigma quality? a. 10 defects per million. b. 3.4 defects per million. c. 6.0 defects per million. d. 100 defects per million.

Q:

Whitlow & Company is a brokerage firm registered under the Securities Exchange Act of 1934. The act requires such a brokerage firm to file audited financial statements with the SEC annually. Mitchell...

Q:

Jackson is a sophisticated investor. As such, she was initially a member of a small group that was going to participate in a private placement of $1 million of common stock of Clarion Corporation....

Q:

The SEC Enforcement Division investigates possible violations of securities laws, recommends SEC action when appropriate, either in a federal court or before an administrative law judge, and...

Q:

You have just purchased a new warehouse. To finance the purchase, you've arranged for a 3 0 - year mortgage loan for 8 0 percent of the $ 2 , 9 0 0 , 0 0 0 purchase price. The monthly payment on this...

Q:

Chandler Corporation has 1 million shares outstanding. The current price per share is $20. If the company decides to use $2 million dollars to repurchase shares at the market price, the company will...

Q:

You'd like to purchase a new car after you graduate and start working. The car that you would really like costs $34,500. You are currently earning a rate of 4.92% in an investment account. If you...