on Techniques for testing controls are those audit procedures performed to test the operating effectiveness of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
on Techniques for testing controls are those audit procedures performed to test the operating effectiveness of controls in preventing or detecting and correcting material misstatements at the assertion level. A list of controls used during the audit of Sanderson Limited are provided below. Complete the following: a. For each test of control listed below, state which procedure is being used by the auditor. (4 marks available) b. For each test of control state one assertion that is relevant. (4 marks available) c. Explain the link between internal controls and substantive testing. (2 marks available) Example: Examined purchase orders for approved requisitions 1 2 3 4 Examine that the human resources manager signs the payroll sheets as evidence of review before cheques are issued. Observe the cashier perform sales transactions. Ask who is authorised to sign cheques. Re-perform the debtors aged summary. Ask management how it makes inspection occurrence on Techniques for testing controls are those audit procedures performed to test the operating effectiveness of controls in preventing or detecting and correcting material misstatements at the assertion level. A list of controls used during the audit of Sanderson Limited are provided below. Complete the following: a. For each test of control listed below, state which procedure is being used by the auditor. (4 marks available) b. For each test of control state one assertion that is relevant. (4 marks available) c. Explain the link between internal controls and substantive testing. (2 marks available) Example: Examined purchase orders for approved requisitions 1 2 3 4 Examine that the human resources manager signs the payroll sheets as evidence of review before cheques are issued. Observe the cashier perform sales transactions. Ask who is authorised to sign cheques. Re-perform the debtors aged summary. Ask management how it makes inspection occurrence
Expert Answer:
Answer rating: 100% (QA)
a For each test of control listed below state which procedure is being used by the auditor Examine that the human resources manager signs the payroll sheets as evidence of review before cheques are is... View the full answer
Related Book For
Auditing and Assurance Services A Systematic Approach
ISBN: 978-1259162343
9th edition
Authors: William Messier, Steven Glover, Douglas Prawitt
Posted Date:
Students also viewed these accounting questions
-
(3) Review Note 5 required you to test the operating effectiveness of an internal control (ensuring appropriate approval of write-offs). To which financial statement assertion does this internal...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Multiple- Choice 1. The Sarbanes- Oxley Act of 2002 requires management to include a report on the effectiveness of ICFR in the entitys annual report. It also requires auditors to report on the...
-
A particle is thrown vertically upwards into the air. Its height s (in m) above the ground after time t (in seconds) is given by s = 25t 5t 2 (a) What height does the particle reach? (b)What is its...
-
You have the following information for Gold Nugget Gems. Gold Nugget uses the periodic method of accounting for its inventory transactions. Gold Nugget only carries one brand and size of diamondsall...
-
What is the output of running class C? class A { public A() { System.out.println("The default constructor of A is invoked"); } } class B extends A { public B() { System.out.println("The default...
-
More and more Japanese companies are moving in on what once was an exclusive U.S. preserve: making and selling the complex equipment that makes semiconductors. World sales are between \($3\) billion...
-
Indicate which of the following items are temporary differences and which are nontaxable or nondeductible. For each temporary difference, indicate whether the item considered alone would create a...
-
1: Provided in the template below are elements of Quality Areas 1 and 6 of the National Quality Standard (NQS). Access and review each of the Quality Areas in the ACECQA website, and for each of the...
-
A convenience store is considering changing its layout to encourage impulse buying. The triangular flow matrix below gives the measure of association between different product groups ( e. g., beer,...
-
Problem 1 Assume that Moe has utility over r1 and r2 given by u(r1, r2) = 2TT+ r2. He has income m and the price of good 2 is normalized to one. Throughout this problem, you may assume that pi and m...
-
Examine the Nurse Practice Act in your state. What opportunities exist for APRNs to expand their scope of practice? What can you do to effect legislative change?
-
What is the economic rationale for the widespread use of disclosure regulation?
-
Why is it argued that a central bank should be independent of the government?
-
A bank issues an obligation to depositors in which it agrees to pay \(8 \%\) guaranteed for one year. With the funds it obtains, the bank can invest in a wide range of financial assets. What is the...
-
Partnerships between acute care and community-based settings improve continuity of care. How do these partnerships influence reimbursement for health systems?
-
Use Newton's method to approximate all the intersection points of the following pair of curves. Some preliminary graphing or analysis may help in choosing good initial approximations. y=- and y=49-4x...
-
Suppose that the laptop of Prob. 2.16 is placed in an insulating briefcase with a fully charged battery, but it does not go into sleep mode, and the battery discharges as if the laptop were in use....
-
Astor Electronics, Inc., markets a wide variety of computer- related products throughout the United States. Astors officers decided to raise $ 1 million by selling shares of Astors common stock in an...
-
Cassandra Corporation, a manufacturing company, periodically invests large sums in investment (debt and equity) securities. The investment policy is established by the investment committee of the...
-
The CPA firm of May & Marty has audited the consolidated financial statements of BGFI Corporation, a private company. May & Marty examined the parent company and all subsidiaries except for BGI-...
-
Margin of error = \($5\), standard deviation = \($20\)
-
Margin of error = 18.2 cm, standard deviation = 95.2 cm
-
Margin of error = 0.5 g, standard deviation = 8.7 g
Study smarter with the SolutionInn App