Question: Why are audit tests more likely to be conducted at or after year end for high-risk clients than for low-risk clients? Explain.

Why are audit tests more likely to be conducted at or after year end for high-risk clients than for low-risk clients? Explain.

Step by Step Solution

★★★★★

3.51 Rating (178 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

High risk clients are more likely to have material misstatements in thei... View full answer

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

Document Format (1 attachment)

Word file Icon

787-B-A-A-P (1802).docx

120 KBs Word File

Students Have Also Explored These Related Auditing Questions!

Q:

Audit engagement partners were comparing notes about changes in clients financial statement ratios or amounts from the prior years figures. Here is what the partners had discovered. Client 1....

Q:

MULTIPLE-CHOICE QUESTIONS 1. Which of the following characteristics would lead the auditor to assess control risk at a higher level? a. It is difficult for the auditor to determine or gain access to...

Q:

Multiple Choice 1. An independent audit aids in the communication of economic data because the audit a. Confirms the exact accuracy of managements financial representations. b. Lends credibility to...

Q:

115. You are the auditor for Codes Limited (Codes) for the financial year ending 30 June 2015. Fieldwork for the Codes engagement was completed on 21 August 2015 and the audit report was signed on 27...

Q:

Q.1 Below are listed three internal controls. State the assertion at which each one is aimed. (i) The client uses prenumbered documents for purchases. Periodically a clerk performs a sequence check....

Q:

Select the correct option for each of the following four multiple choice questions Question (i) After obtaining an understanding of internal control and assessing control risk of an entity an auditor...

Q:

The questions to be answered are: Question 1 (7 marks) (This question is from the Week 3 Tutorial) You have reviewed the work performed by your assistant, Raymond Snow, on the audit of Tin Ltd for...

Q:

Hi, I need someone to do summary for the article I upload AUDITING: A JOURNAL OF PRACTICE & THEORY Vol. 28, No. 2 November 2009 pp. 1-34 American Accounting Association DOI: 10.2308 / aud.2009.28.2.1...

Q:

Using game theory and strategic reasoning concepts to prevent and detect fraud. I need half page summary of this article Accounting Horizons Vol. 18, No. 3 September 2004 pp. 173-184 Using Game...

Q:

I have an assignment for my ACC/497 class and I need someone to reword this paper so it is not plagiarized. Thank you! Week 5 Individual Assignment Learning Check: 4-15 Some other ways in which the...

Q:

You used the sum-mated rating to predict the cost of a restaurant meal. Perform a residual analysis for these data (stored in Pet Food)-Evaluate whether the assumptions of regression have been...

Q:

Consider the following game, called matching pennies, which you are playing with a friend. Each of you has a penny hidden in your hand, facing either heads up or tails up (you know which way the one...

Q:

Ratios Google MicroSoft Amazon Apple Tesla Coca-Cola Debt to Equity Ratio 0.39 0.91 1.19 5.41 0.66 2.81 Current Ratio 1.84 1.27 1.06 0.87 2.02 1.03 Equity Ratio 0.72 0.52 0.46 0.16 0.60 0.26 Many...

Q:

Why do you think Smithfields shareholder agreed to this takeover?

Q:

What will an auditor consider if their client is an importer or exporter?

Q:

What is the purpose of gaining an understanding of a client?

Q:

What are related parties?

Q:

The principal P is borrowed at a simple interest rate r for a period of time t. Find the loan's future value A, or the total amount due at time t. P=$1000,r=7.5%,t=3 months The loan's future value is...

Q:

SQL ASSIGNMENT Activity 1 : Create a table STUDENT with under mentioned structure by using SQL Statement: StdID Number Primary Key StdName Character ( 3 0 ) NOT NULL Sex Character ( 6 ) Male or...

Q:

One million dollars is invested for 20 years at a nominal annual rate of 10%. Find the amount if interest is compounded: (a) monthly; (b) continuously. O (a) $7,329,074 (b) $7,388,056 O(a) $7,323,074...