Question: 8-27 The following are various activities an auditor does during audit planning. 1. Review accounting principles unique to the clients industry 2. Determine the likely

8-27

The following are various activities an auditor does during audit planning.

1. Review accounting principles unique to the clients industry

2. Determine the likely users of the financial statements

3. Evaluate the appropriate financial statement measures for determining amounts likely to be considered material by users of the financial statements

4. Identify whether any specialists are required for the engagement

5. Send an engagement letter to the client

6. Tour the clients plant and offices

7. Specify materiality levels to be used in testing of accounts receivable

8. Compare key ratios for the company to those for industry competitors

9. Review managements risk management controls and procedures

10. Identify potential related parties that may require disclosure

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock 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

Students Have Also Explored These Related Accounting Questions!

Following are the income statement and balance sheet for Medtronic PLC. Note: Complete the entire question using the following Excel template: Ex Medtronic PLC Consolidated Statement of Income April...

Reply all Delete Junk Block - Presentation Auditing reevaluate established materiality levels? (1) The materiality level was established based on preliminary financial statement amounts that differ...

The following are various activities an auditor does during audit planning. 1 . Review accounting principles unique to the client s industry 2 . Determine the likely users of the financial statements...

8 - 2 7 ( Objectives 8 - 2 , 8 - 3 , 8 - 4 , 8 - 5 ) The following are various activities an auditor does during audit planning. 1 . Review accounting principles unique to the client s industry 2 ....

I am having a horrible time trying to figure out the answer to 7-35 B & C. I thank you for any help possible. 7-36 (Objective 7-4) Analytical procedures consist of evaluations of financial...

Q1: The following are various activities an auditor does during audit planning. 1. Determine the likely users of the financial statements. 2. Tour the clients plant and offices. 3. Compare key ratios...

Test Content Question 1 5 Poin The following are various activities an auditor does during audit planning. 1. Determine the likely users of the financial statements. 2. Tour the client's plant and...

Please assist me- auditing and investigagtion The first four parts of audit planning: Accept client and perform initial audit planning Understand the clients business and industry Perform preliminary...

The following are various activities an auditor does during audit planning. Requirement For each procedure, indicate which of the first four parts of audit planning the procedure primarily relates...

QUESTION 1 (23 Marks) A. The following are various activities an auditor does during audit planning: Determine the likely users of the financial statements Identify whether any specialists are...

In 2007, the SEC cancelled its requirement that foreign companies whose shares are traded in the United States and whose financial statements are prepared according to IASB accounting standards...

Given the following American quotes USD 1. USD GBP 1.22612 CAD 0.74481 EUR 1.04999 AUD 0.68115 1. Find the cross rate for CAD per EUR 2. Find the cross rate for EUR per AUD 3. Find the cross rate for...

Upon which of the following does managerial accounting place considerable weight? Multiple Choice 2 : 4 4 Generally accepted accounting principles. The financial history of the entity. Detailed...

Suppose you are on the senior management team of a defense contractor who has recently opened a division to develop commercial business. You know that government and commercial bidding are very...

4. Find the constants xo , T1 and c such that the numerical integration formula f(x) da f(x.)+cf(x1) has the highest precision possible.

Use Lagrange interpolation to construct an approximation to 1 -1 f(x) dx with nodes at x = 1, -1/2 1/2 and 1.

Problem 1. Let ABCD be a rectangle and let ABE, BCF be equilateral tri angles built, one outside, and one inside the rectangle. Compute |EF| given the side lengths of the rectangle.

What are the advantages of having a cross functional team develop the business case?

n lecture, we discussed business process maps. We discovered that sometimes right in the middle of a business process there might be another business process according to SCM , which of the flow...

3. Where is the job to be accomplished?

Compare and contrast equal employment opportunity, affirmative action, and managing diversity programs. In your opinion, can they occur simultaneously? Why or why not?

Do you believe it is important to acknowledge, understand, and value differences in your organization? Explain. How are you and your friends from culturally diverse backgrounds different? How are you...