Question: Auditors often use analytical procedures as substantive procedures to reduce detection risk relating to specific financial statement assertions. Explain FOUR (4) factors that determine the

Auditors often use analytical procedures as substantive procedures to reduce detection risk

relating to specific financial statement assertions.

Explain FOUR (4) factors that determine the extent of reliance that the Auditors may place

on analytical procedures to reduce detection risk. (8 marks)

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!

Q:

You have prepared the following schedule for a project in which the key resource is a backhoe. This schedule is contingent on having 3 backhoes. You receive a call from your partner, Brooker, who...

Q:

When an Auditor concludes that the financial statements of a company give a true and fair view, in accordance with the identified financial reporting framework, then he should express an unqualified...

Q:

Auditors often use analytical procedures as substantive procedures to reduce detection risk relating to specific financial statement assertions. Explain FOUR (4) factors that determine the extent of...

Q:

When an Auditor concludes that the financial statements of a company give a true and fair view, in accordance with the identified financial reporting framework, then he should express an unqualified...

Q:

Graded Group Presentation (Weight 20%) (Oral presentation and written) QUESTION When an Auditor concludes that the financial statements of a company give a true and fair view, in accordance with the...

Q:

Need help with the final project ACC 640. The attached file includes rubrics and guidelines. ACC 640 Final Project Guidelines and Rubric Overview The final project for this course is the creation of...

Q:

I have done milestone 1,2 and 3 but need help articulating the final audit report based on these three documents. Final report (summary) should be 8-10 pages plus cover page and supporting documents....

Q:

AUDITING THEORIES Part I. Multiple Choice 1) Arrange the following evidential items from the most to the least reliable in the audit of cash: (A) Bank reconciliation prepared by the bookkeeper, (B)...

Q:

Need help with milestone 3 ACC 640, the attached file includes rubric and guidelines. ACC 640 Milestone Three Guidelines and Rubric Auditing is a valuable skill in accounting and business, as the...

Q:

Exam PRACTICE 1. Auditors consider financial statement assertions to identify appropriate audit procedures. For items a through f, match each assertion with the statement that most closely...

Q:

Test of controls are concerned primarily with each of the following questions, except By whom where the controls are applied Were the necessary controls consistently performed How were the controls...

Q:

A thermal homogeneous circulating-fuel reactor has a spherical core 200 cm in diameter. The fuel is a uranium salt solution in heavy water and the U 235 concentration is 10 20 nuclei/cm 3 . The core...

Q:

Hydrogen peroxide undergoes a first-order decomposition to water and O2 in aqueous solution. The rate constant at 25oC is 7.40 104/s. Calculate the volume of O2 obtained from the decomposition...

Q:

Prepare a global marketing plan for one South Africa market using your knowledge of marketing principles to launch a subsidiary of Mpesa Kenya In south Africa Market critically analyzing the...

Q:

The weight and systolic blood pressure of 26 randomly selected males in the age group 25 to 30 are shown in the following table. Assume that weight and blood pressure are jointly normally...

Q:

The two blocks in Fig. 4.39 are connected by a heavy uniform rope with a mass of 4.00 kg. An upward force of 200 N is applied as shown. (a) Draw three free-body diagrams, one for the 6.00-kg block,...

Q:

An oil tanker's engines have broken down, and the wind is blowing the tanker straight toward a reef at a constant speed of 1.5 m/s (Fig. 4.37). When the tanker is 500 m from the reef, the wind dies...

Q:

An athlete throws a ball of mass m directly upward, and it feels no appreciable air resistance. Draw a free-body diagram of this ball while it is free of the athlete's hand and (a) moving upward; (b)...

Q:

The following note related to stockholders equity was reported in Wiebold, Inc.s annual report. On February 1, the Board of Directors declared a 3-for-2 stock split, distributed on February 22 to...

Q:

Garments International manufactures men's shirts and woman's blouses for Cost-No-More International. The production process includes inspecting the cloth to be used, cutting, sewing Cost-No-More will...

Q:

4. How can we use information and communication to influence other people?

Q:

2. Why do we have more confidence in what one person tells us than in what another person tells us?

Q:

1. Why do we trust one type of information more than another?