A financial statement auditor concludes that internal controls over cash are not functioning as designed. She believes that material misstatements to the cash accounts are possible because of the deficiencies. What is the course of action that the auditor will most likely take? Group of answer choices Report the audit to the regulatory agencies of the IRS and SEC. Develop specific tests for cash balances to determine the extent of misstatement. Explain to the client that the audit firm will not be able to complete the audit. Test the internal control over cash.

Q: Choose an alternative which is not the external source of audit evidence. a. Confirmation from…

A: External Evidence are audit evidences that originate outside the client’s organization. These…

Q: Confirmations of bank accounts may help the auditor to determine if material amounts of accounts…

A: An auditor is a professional, frequently an independent third party, who examines and verifies…

Q: Complete the table with assertion, and recommended audit procedure that apply: Possible Assertion…

A: In the audit of cash, the inherent risk of cash is usually assessed as high risk because the nature…

Q: When planning to perform an audit, an accountant must have a clear understanding of audit risk and…

A: Audit risk It is the risk that financial statements are materially incorrect, even though financial…

Q: ccounting 1. The auditor spends significant time auditing cash discounts and sales returns because…

A: Audit and duties of auditor : Audit is the internal and external check of the financial statements,…

Q: 2. Which technique would be most effective and efficient for testing the operating effectiveness of…

A: The bank reconciliation statement is the statement that is prepared to rectify the errors between…

Q: Attached is an audit working paper prepared by a new staff auditor based on his testing of a…

A: Auditor while performing his duties for conducting an audit prepares some documents, file work and…

Q: hellooo, ito po yung ipapa-post ko: 1. Although the primary objective of an independent audit is…

A: An audit is an independent examination of an organization's financial statements, systems,…

Q: f the auditor believes that a misstatement is or might be intentional and the effect on the…

A: Auditor: The auditor is the professional person who is appointed to conduct the official scrutiny of…

Q: Discuss the audit implications, if any, of the unwillingness of Mr Bold to participate in the cheque…

A: Audit is overall review of the procedures, documents so as to state whether they are abide by the…

Q: The auditor would like to determine any cash restriction. Which of the following audit procedures…

A: Budget audits or a third-party objective review and evaluation of a company's financial accounts are…

Q: Evidence comes in various types and has different degrees of reliability. Below are some pairs of…

A: The auditors are professional who possesses accounting, auditing, and taxation expertise. The…

Q: Audit committee Audit plan Confirmation Cutoff Inherent risk Misappropriation of assets…

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Q: Which among the following types of audit evidence can be considered the most reliable? a. Verbal…

A: Please see the next step for the solution

Q: Items a through frepresent the items that an auditor ordinarily would find on a client-prepared bank…

A: Bank Reconciliation Statement is a statement document that reconciles the difference in the cash…

Q: The auditor would like to determine any cash restriction. Which of the following audit procedures…

A: Audit Procedure: In the context of financial statements, audit procedures are the steps taken by…

Q: When auditing the cash account, the auditor traces the cash receipts, which are recorded on the cash…

A: Auditing refers to the process of physically evaluating and inspecting all the financial information…

Q: When auditing contingent liabilities, which of the following procedures would be MOST effective? a.…

A: One kind of potential financial obligation known as a contingent liability is one that is predicated…

Q: An auditor tested the client's internal controls over granting customers credit and establishing…

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Q: How does cash control deficiencies affect the development of audit procedures for cash?

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Q: Which of the following procedures would most likely be performed during planning?a. Surprise…

A: Identifying related parties would most likely be performed during planning.

Q: egarding the confirmation of accounts payable is true?   Group of answer choices The confirmation of…

A: it is important to understand the client account payable and account receivable valences in order to…

Q: S1: One of the elements of audit planning process most likely to be agreed upon with the client…

A: The question is related to Auditing. Audit planning process is the steps that are to be followed by…

Q: If an auditor believes that a misstatement might be intentional and the effect on the financial…

A: c) If the auditors prepare the procedure and if check whether the fraud have taken place or going to…

Q: It's important to understand the link between an organization's initial risk assessment, control…

A: This question explains about an organization's initial risk assessment, control tests, and the…

Q: An auditor wishes to perform tests of controls on a client's cash disbursements procedures. If the…

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Q: Why are auditors usually less concerned about the client’s cashreceipts cutoff than the cutoff for…

A: Auditors usually less concerned about the client’s cash receipts cu toff than the cu toff for sales

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A: Counting cash and verifying bank reconciliation are basic substantive procedures andsame ia required…

Q: A transaction level internal control activity is best described as:     An action taken by…

A: A transaction-level internal control activity can be labeled as action taken by customer personnel…

Q: Which of the following audit procedures is aimed most directly at testing the completeness assertion…

A: For acco payable auditor should  perform  appropriate  audit procedure  for testing  completeness…

Q: Among the wide array of audit procedures being performed by auditors, which of the following is/are…

A: Audit procedure refers to specific stem and techniques employed adopted by auditors to assess the…

Q: Identify important internal control activities present in a properly designed system to mitigate the…

A: Internal Control: A company’s Internal Control ensures that the operational efficiency of a company…

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Q: Part II Preparing the bank reconciliation is considered to be an important step in the internal…

A: Bank Reconciliation Statement is the statement which shows the differences between the bank balance…

Q: $1: In obtaining an understanding of the internal control policies and procedures, the auditor noted…

A: Internal control is a part of auditing done from the part of an organization to keep a control over…

Q: Which of the following control objectives would be least likely be considered by the internal…

A: The answer for the multiple choice question and relevant explanation are presented hereunder :…

Q: il: As the assessed level of control risk increases, the acceptable level of detection risk…

A: As the assessed level of control risk increases, the acceptable level of detection risk decreases,…

Q: would help an auditor determine whether accounts payable have been misstated?     Examining…

A: Accounts payable (AP) is the sum owed to creditors and suppliers by a corporation (also referred to…

Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.