Question: Consider the following substantive procedures. For each substantive procedure, select the assertion(s) for which the substantive procedure is designed to detect misstatements. You may use
Consider the following substantive procedures. For each substantive procedure, select the assertion(s) for which the substantive procedure is designed to detect misstatements. You may use an assertion below more than once. a. Inspect activity in all longterm debt and related income statement accounts and investigate entries that appear unusual in amount or source. Confirm equity b. transactions with the company's registrar or transfer agent. c. Inspect authorizations and terms of stock issues. Compare financial d. statement presentation with GAAP for debt disclosures. Scan the cash receipts e. journal for large, unusual cash receipts. Vouch a sample of entries f. in the long-term debt and related interest expense accounts. g. Calculate appropriate equity ratios. Confirm interest expense h. and recalculate as necessary
Step by Step Solution
There are 3 Steps involved in it
Sure lets match the substantive procedures to the relevant assertions a Inspect activity in all long... View full answer
Get step-by-step solutions from verified subject matter experts
