In Figure 9.9, why are there fewer substantive tests for the existence assertion than for the valuation
Question:
In Figure 9.9, why are there fewer substantive tests for the existence assertion than for the valuation assertion?
Transcribed Image Text:
FIGURE 9.9 Illustration of Accounts Receivable Assertions Assertion: Valuation-Net Accounts Receivable is stated at the proper amount at the balance sheet date. Assertion: Existence-Accounts receivable exists. at the balance sheet date. Audit strategy: Primarily substantive approach Audit strategy: Lower control risk approach Reasons for audit strategy: 1. Understaffed credit department. 2. Tests of controls in prior audits have not been cost-effective in reducing the nature, timing, and extent of substantive tests. Reasons for audit strategy: 1. There have been large numbers of sales and collection transactions during each accounting period. 2. There is a large number of small dollar balances. 3. The accounts receivable records have been well maintained in prior periods.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (QA)
Answered By
Cyrus Sandoval
I a web and systems developer with a vast array of knowledge in many different front end and back end languages, responsive frameworks, databases, and best code practices. My objective is simply to be the best web developer that i can be and to contribute to the technology industry all that i know and i can do. My skills include:
- Front end languages: css, HTML, Javascript, XML
- Frameworks: Angular, Jquery, Bootstrap, Jasmine, Mocha
- Back End Languages: Java, Javascript, PHP,kotlin
- Databases: MySQL, PostegreSQL, Mongo, Cassandra
- Tools: Atom, Aptana, Eclipse, Android Studio, Notepad++, Netbeans.
Having a degree in Computer Science enabled me to deeply learn most of the things regarding programming, and i believe that my understanding of problem solving and complex algorithms are also skills that have and will continue to contribute to my overall success as a developer.
I’ve worked on countless freelance projects and have been involved with a handful of notable startups. Also while freelancing I was involved in doing other IT tasks requiring the use of computers from working with data, content creation and transcription.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Auditing An Assertions Approach
ISBN: 9780471134213
7th Edition
Authors: G. William Glezen, Donald H. Taylor
Question Posted:
Students also viewed these Business questions
-
Suzie Pickering has experience in the clothing and retail industry, which is why she was assigned to the Cloud 9 audit. Suzie is mentoring Ian Harper, a first-year staff on the audit team, and they...
-
MULTIPLE-CHOICE QUESTIONS 1. Which of the following expected relationships is reasonable in terms of performing preliminary analytical procedures in the acquisition and payment cycle? a. Assume that...
-
Consider Figure 12-13, where a substantive analysis of inventory turnover was performed during the audit of Jones Manufacturing Company to determine whether inventory should be written down due to...
-
The following condensed balance sheet is for the partnership of Miller, Tyson, and Watson, who share profits and losses in the ratio of 6:2:2, respectively: For how much money must the other assets...
-
Let G = (V, E) be a loop-free connected graph with | V | = v. If | E | > (v/2)2, prove that G cannot be bipartite.
-
Suppose $30,525 is invested into a mutual fund where the interest is compounded continuously at 4.27%. If the investment starts in 2023, how long will it take for the fund to be worth $40,000?
-
In what situations do the Government Auditing Standards apply?
-
CTU Company has the following information available for September 2012. Unit selling price of video game consoles ... $ 400 Unit variable costs ............ $ 270 Total fixed costs ...............
-
Using any of the following terms help fill out the boxes: Doa Marina The Great Dying The Columbian Exchange Cartaz* Trading Post Empire* Lateen Sail and Astrolabe* Encomienda and Repartimiento...
-
Which of the following is not a characteristic of the primarily substantive approach? a. The auditor usually gathers all or most of the evidence with substantive tests. b. Usually little or no...
-
Give a four-part comparison of the two audit strategies.
-
Discuss the growing income inequality in the U.S. and the world with someone mature enough to have some perspective from experience about it. Ask them what they think about the widening gap between...
-
Section A Preparing Statement of Changes in Equity and Statement of Cash Flows: The following are the financial statements of Small Limited for the year ended 30 September 2023: Statements of...
-
Check weather the series convergent or divergent. (a) (1) (n + 1) n +1 n=2
-
First Draft -Final Research Paper It must include some documentation; both in-text and Works Cited. FINAL RESEARCH PROJECT "The World of... (John Updike)" Eng208 E3 (Ritchie) The Contemporary...
-
Synchronized methods in a language like Java true O false - Synchronize on an object, not the class true false - will cover more code the a synchronized block within the method true Ofalse - may be...
-
Write unadulterated lambda-articulation that will go about as a fixed-point administrator Y to such an extent that the character Y f = f(Y f) will hold. [6 marks] (b) Write unadulterated...
-
Each of the following compounds is characterized by a 1H NMR spectrum that consists of two peaks, both singlets, having the chemical shifts indicated. Identify each compound. (a) C6H8; 2.7 ppm (4H)...
-
In Exercises 15 through 30, find the derivative dy/dx. In some of these problems, you may need to use implicit differentiation or logarithmic differentiation. y ex + et -2x 1 + e
-
let arr = [x => x + 5, x => 8, x => x * 2]; let b = X; let a = arr.reduce((acc, f) => acc + f(b), 0); If we know a is 28, what's the value of X?
-
Write a JavaScript function f that takes an array of numbers as argument and return the number of positive values in the array. O is not negative value or positive value. Examples f([1,-2,2,-4])...
-
5. What is the output of the following program? Please briefly describe how do you get the output. (5 points) public class SumArray{ public static void main(String[] s) { // number is a array...
Study smarter with the SolutionInn App