An auditor discovered the following matters while performing tests of controls: 1.An obligation for insurance was not paid because the voucher that was prepared was never recorded. Required: a.What control would have prevented or detected each of the above misstatements? b.What test should the auditor perform to test the control? c.To which financial statement assertion does the misstatement relate?
An auditor discovered the following matters while performing tests of controls: 1.An obligation for insurance was not paid because the voucher that was prepared was never recorded. Required: a.What control would have prevented or detected each of the above misstatements? b.What test should the auditor perform to test the control? c.To which financial statement assertion does the misstatement relate?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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An auditor discovered the following matters while performing tests of controls:
1.An obligation for insurance was not paid because the voucher that was prepared was never recorded.
Required:
a.What control would have prevented or detected each of the above misstatements?
b.What test should the auditor perform to test the control?
c.To which financial statement assertion does the misstatement relate?
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