Question: Classify the following audit procedures as: i) Compliance testing; or ii) Substantive testing. a) A check on bank reconciliations carried out by the client each

Classify the following audit procedures as:

i) Compliance testing; or

ii) Substantive testing.

a) A check on bank reconciliations carried out by the client each month to see if reconciliation procedures are regularly performed.

b) The auditor re-performs the reconciliations as at 30 June.

c) The auditor makes enquiries relating to the clients procedures in estimating doubtful debts for the coming year.

d) The auditor examines an aged analysis of debtors at the end of the year and then makes enquiries relating to the adequacy of the allowance for doubtful debts.

e) The auditor inspects documents relating to insurance to see if the clients insurance expense in the profit and loss report is reasonable.

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!

I need to finish assignment Assignment 6 WPs 21-1, 21-2, 21-3, 21-5, 21-6, 21-17, 21-18, 21-19, 21-20, 21-21 Assignment 7 WPs 30-1, 30-2, 30-4, 30-5, 30-21, 30-22, 30-23, 30-24 Assignment 8 WPs 20-1,...

** Its a practice test that prof gave us for the preparation so its not homework or anything like that 1. Which of the following is a characteristic of monetary unit sampling (MUS)? A) MUS is a form...

Answer the following questions based on the information presented for Cloud 9 in the appendix to this text and the current and earlier chapters. You should also consider your answers to the case...

2.Excel Ratio File spreadsheet: Using the SEC Financial Statements Ratios and Calculations, prepare a ratio analysis of your SEC corporation's current and prior year's financial statements. In...

Testing controls Learning objective In designing an audit strategy, auditors should consider the effectiveness of the clients internal control structure, thereby determining the control risk. An...

Subsidiary 3 - Computek Electronics Limited (Case for Audit Supervisor) You are the audit supervisor assigned to the audit of Computek Electronics Limited, a subsidiary company of Las Vegas Group...

Can somebody help me with the attached question? I have attached the question here. let me know the time you require but at least this needs to be done by Thursday 3 pm. Please let me know if there...

Who proposed the hypothesis that life must have developed from the simple inorganic molecules which were present on earth soon after it was formed? (A) Miller (B) Urey (C) Darwin (D) Haldane

Find the probability that a flight departed on time given that it arrives on time. Use the following information. The probability that an airplane flight departs on time is 0.89. The probability...

1 ) In the audit of Technology Unlimited, a leading manufacturer of computer chips, the external audit staff discovers that the internal audit staff has performed extensive evaluation and testing on...

Projects A and B are mutually exclusive and both have an initial cost of $88,000. Project A has annual cash flows for three years of $18,300, $34,500, and $52,300, respectively. Project B has annual...

Describe three situations that would require a businessperson to use the indirect plan for a negative message. (Objective 4)

Select the most effective plan for developing negative messages (direct or indirect) for the following situations and justify your choice: (Objective 2) a. A routine meeting is canceled. b. A...

Technology. You manage Sunset Lane, a small card and gift shop. On September 3, you ordered four cases of shower gel and four cases of body lotion, one of each in the following fragrances: White...