• Principles of Auditing
    Define “test of controls.” What is the difference between test of controls and procedures to obtain an understanding? 8.11 Tests of controls generally use what types of evidence-gathering procedures? Briefly describe each type. 8.12 If the auditor hopes to rely on prior audit evidence, evidence is...
    Premium 300940 Words 1204 Pages
  • Haha
    the auditors' assessment of control risk would sufficiently reduce the required amount of substantive procedures to justify the related tests of controls. (2) Defining a "deviation." If the test results are to be meaningful, all exceptions included in the definition of "deviation" must...
    Premium 9134 Words 37 Pages
  • Album
    often unique characteristics, substantive testing is always necessary in addition to tests of internal controls. One of the problems in auditing large projects is obtaining the historical documents (relating to approvals; statement of results to be achieved; original budgets ad schedules) because...
    Premium 89734 Words 359 Pages
  • Auditing
    of control risk affect the sample size in a substantive test of details? A. A Above. B. B Above. C. C Above. D. D Above. 18. Precision is a statistical measure of the maximum likely difference between the sample estimate and the true but unknown population total, and is directly related to A...
    Premium 6093 Words 25 Pages
  • term paper
    . • Discuss the difference between tests of control and substantive procedures. • Explain the importance of internal control to auditors. • Explain how auditors identify weaknesses in internal control systems and how those weaknesses limit the extent of auditors' reliance on those...
    Premium 57983 Words 232 Pages
  • AUE 2602 summary
    performing tests of controls and substantive tests. Also risk that there are transactions that haven’t been recorded and so the balance is understated and the auditor has to perform specific procedures to identify unrecorded liabilities. As well as testing the creditor’s balance substantively auditor must...
    Premium 33324 Words 134 Pages
  • research paper
    failure on the auditor’s part i.e. he will not detect misstatements in the accounts or class of transactions that could be material individually or when aggregated with other misstatements. The audit procedures may include tests of control and substantive tests. The risk is dependent on the...
    Premium 12365 Words 50 Pages
  • Acc 403 Final Exam
    management's and an auditor's judgment about account balances | Projections of misstatements based on an auditor's tests of asample from a population | No | Yes | Yes | | Correct Answer: | Computation of the sampling error for the cash account | Differences between management's and an auditor's...
    Premium 2361 Words 10 Pages
  • Case 1.12:Madoff Securities
    client’s business the auditor will better obtain sufficient, reliable, and relevant evidence to achieve his audit objectives. Analytical procedures are used as a substantive test where the auditor considers the level of assurance he/she wants from the substantive test for audit objective. The...
    Premium 1261 Words 6 Pages
  • Assurence
    Process of assurance Audit evidence Tests of controls Substantive procedures Sufficient appropriate audit evidence Procedures for obtaining Audit evidence Audit of Accounting Estimates Audit sampling Statistical sampling Non-statistical sampling Management Representation Management representation...
    Premium 6688 Words 27 Pages
  • acc 521 - exam
    have decided to test the controls because if they are effective it can reduce the other substantive procedures required in your overall audit plan. You now need to design a program (list) of control tests to audit the effectiveness of the controls over cash disbursements. Based on past experience...
    Premium 3393 Words 14 Pages
  • Accounting
    occurrence are both related to assets, not others. Incompleteness of expenses is what we concern with. Q3. D---Directly. Relationship between substantive test and audit evidence. Q6. A A--- Differences are always disclosed on a computer exception report. Q9. C ---the control procedure in the...
    Premium 287 Words 2 Pages
  • Audit Plan - 1
    the less level of assessed risk would be. Therefore, more extensive tests are required to confirm the assessment and this will help in lower planned level of substantive procedures. If the tests do not confirm the operation of the control as planned then the auditor will need to reconsider the...
    Premium 3289 Words 14 Pages
  • Audit Laws Summary
    transactions, account balance, and disclosure, as determined. Auditor’s Procedures in Response to Assessed Risks. The plan for further audit procedures reflects the auditor’s decision whether to test the operating effectiveness of controls, and the nature, timing and extent of planned substantive procedures...
    Premium 2383 Words 10 Pages
  • Au2 Exam
    reduces her substantive tests where the controls appear to be operating effectively. Rajan, a CGA, has just completed a review engagement of the financial statements of a small, privately-owned business. His procedures were limited to discussion, analysis, and enquiry plus a confirmation of...
    Premium 6840 Words 28 Pages
  • MADOFF CASE
    audit procedures- Test of Controls Perform further audit proceduressubstantive procedures for investment transactions and year-end balances. Question 3: Describe the nature and purpose of a “peer review.” Would peer reviews of Friehling & Horowitz have likely resulted in the discovery of the...
    Premium 341 Words 2 Pages
  • Study Guide #2
    increase or decrease based on the results which changes detection risk (DR) and the amount of planned evidence that the auditor will have to accumulate during the audit. The relationship between the assessment of control risk and the extent of the tests of controls and substantive tests to be performed...
    Premium 8409 Words 34 Pages
  • American Government Review on 17-18
    president. D. All presidents share most personality traits in common. 13. What is the difference between descriptive and substantive representation? R. Substantive representation means that representatives look like you and descriptive representation means that representatives think...
    Premium 1726 Words 7 Pages
  • Accounts Receivable Audit Program
    misstatement of sales cutoff. | | | |  |¯     When an analytical procedure is used as the principal substantive test of a significant |  |  | | |financial statement...
    Premium 6391 Words 26 Pages
  • Accy 131 Unit 1 Study Guide
    consider inherent risk, including fraud risks, related to debt.  Obtain an understanding of internal control over debt.  Assess the risks of material misstatement of and design tests of controls and substantive procedures that: i. Substantiate the existence of debt and the occurrence of...
    Premium 5377 Words 22 Pages