You are provided with a series of audit procedures as follows: a). Test the conversion rates for
Question:
You are provided with a series of audit procedures as follows:
a). Test the conversion rates for any foreign currency balances.
b). Confirm with suppliers that amounts reflected in accounts payable are obligations owed by the entity.
c). Select a sample of sales invoices and trace through to sales journal and general ledger.
d). Read draft financial report to ensure that disclosures are clear and understandable.
Required:
For each audit procedure: 1) state the management assertion tested by the procedure, and 2) indicate what specific type of audit procedure is described in each scenario (e.g. observation or inquiry of management).
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine