for each of the following audit procedures, (a) state the type of audit procedure used (e.g., observation), (b) state the general audit objective(s) tested by the procedure (no additional explanation is required), and (c) evaluate and briefly explain the reliability of the evidence produced by the audit procedure. Select a sample of the audit client’s suppliers’ invoices to see if these transactions have been recorded in the accounting records. Write to the audit client’s banks to ask for financial year-end bank statements to check the balance of Cash at Bank. Briefly explain the basic steps for using the audit risk model to determine the amount of audit evidence required. You do NOT need to define the components of the audit risk model. When would an auditor choose the predominantly substantive audit strategy? Briefly explain how this strategy affects the combination of tests of control and substantive tests. Analytical procedures must be performed at which of the following stages? You can choose more than one answer. (A) Audit planning. (B) Audit testing. (C) Audit completion. If the audit client’s debt to assets ratio this year is unexpectedly low relative to the last few years, are total liabilities likely to be overstated or understated? Suggest two management assertions that are least likely to require further investigation for total liabilities. (1.5 marks)

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Select a sample of the audit clients suppliers invoices Audit sampling is used in this case the gene... View the full answer