Assume that your audit partner asks you to design detailed substantive testing programs for accounts receivable and sales of Air New Zealand. Your partner also asks you to incorporate specific analytical procedures and tests of detail (i.e. direct tests on balances and tests of transactions of a balance).Required:Design/develop a substantive audit tests program and explain & justify your audit program in terms of audit objectives (also called ‘audit assertions’)Questiona. Trade and Other Receivables and Operating Revenue: You have assessed the inherentrisk of management distortion, and overstatement of Revenues, to be high this yearbecause senior management is trying to obtain an extended loan
Assume that your audit partner asks you to design detailed substantive testing programs for accounts receivable and sales of Air New Zealand. Your partner also asks you to incorporate specific analytical procedures and tests of detail (i.e. direct tests on balances and tests of transactions of a balance).Required:Design/develop a substantive audit tests program and explain & justify your audit program in terms of audit objectives (also called ‘audit assertions’)Questiona. Trade and Other Receivables and Operating Revenue: You have assessed the inherentrisk of management distortion, and overstatement of Revenues, to be high this yearbecause senior management is trying to obtain an extended loan
Assume that your audit partner asks you to design detailed substantive testing programs for accounts receivable and sales of Air New Zealand. Your partner also asks you to incorporate specific analytical procedures and tests of detail (i.e. direct tests on balances and tests of transactions of a balance).Required:Design/develop a substantive audit tests program and explain & justify your audit program in terms of audit objectives (also called ‘audit assertions’)Questiona. Trade and Other Receivables and Operating Revenue: You have assessed the inherentrisk of management distortion, and overstatement of Revenues, to be high this yearbecause senior management is trying to obtain an extended loan
Assume that your audit partner asks you to design detailed substantive testing programs for accounts receivable and sales of Air New Zealand. Your partner also asks you to incorporate specific analytical procedures and tests of detail (i.e. direct tests on balances and tests of transactions of a balance). Required: Design/develop a substantive audit tests program and explain & justify your audit program in terms of audit objectives (also called ‘audit assertions’) Question a. Trade and Other Receivables and Operating Revenue: You have assessed the inherent risk of management distortion, and overstatement of Revenues, to be high this year because senior management is trying to obtain an extended loan from their financial institution. However, the only weakness revealed in the testing of controls is a lack of review of adjusting journal entries
Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.
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