Among the wide array of audit procedures being performed by auditors, which of the following is/are mainly related to gaining an understanding of the client? Select all that apply. Conducting a walkthrough around the client's facilities to observe how products are made Sending positive and negative accounts receivable confirmations to client customers Reading minutes of meetings to look for key issues and strategic initiatives being discussed Testing whether bank statement reconciliations are properly prepared, reviewed, and approved

Among the wide array of audit procedures being performed by auditors, which of the following is/are mainly related to gaining an understanding of the client? Select all that apply. Conducting a walkthrough around the client's facilities to observe how products are made Sending positive and negative accounts receivable confirmations to client customers Reading minutes of meetings to look for key issues and strategic initiatives being discussed Testing whether bank statement reconciliations are properly prepared, reviewed, and approved

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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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.

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In the normal course of performing their responsibilities, auditors often conduct audits or reviewsof the following:1. The computer operations of a large corporation to evaluate whether the internal controlsare likely to prevent misstatements in accounting and operating data.2. Financial statements for use by stockholders when there is an internal audit staff.3. A bond indenture agreement to make sure a company is following all requirements of thecontract.4. Internal controls at a casino to ensure the casino is in compliance with federal and stateregulations.5. Computer operations of a corporation to evaluate whether the computer center is beingoperated as efficiently as possible.6. Annual statements for the use of management.7. Operations of the IRS to determine whether the internal revenue agents are using theirtime efficiently in conducting audits.8. Statements for bankers and other creditors when the client is too small to have an auditstaff.9. Financial statements of a branch of…
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