Accounting The public believes that auditors test 95% of transactions. A reasonable public expectation is 35% testing. Auditing standards require 25% testing. Denis the dodgy auditor tests 10%. Which of the following statements is true? a. The gap due to deficient performance is 30%.

Accounting The public believes that auditors test 95% of transactions. A reasonable public expectation is 35% testing. Auditing standards require 25% testing. Denis the dodgy auditor tests 10%. Which of the following statements is true? a. The gap due to deficient performance is 30%.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

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.

Question

Accounting
The public believes that auditors test 95% of transactions. A reasonable public
expectation is 35% testing. Auditing standards require 25% testing. Denis the
dodgy auditor tests 10%. Which of the following statements is true?
a. The gap due to deficient performance is 30%.
b. The expectation gap is 95%, of which 10% are deficient standards
c. he expectation gap is 85%, of which 20% are deficient standards
d. The performance gap is 25%

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Audit procedures for items of Financial Statement

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