Question 1 Control: On a monthly basis, the financial analyst performs the reconciliation of the AR subledger data to the general ledger balance. All reconciling items in excess of US$15,000 are investigated and resolved. Deficiency: During our test of control of a sample of 2 months from the first nine months of the audit period, we identified unexplained reconciling items in excess of US$ 15,000 in the reconciliations for the two months selected for testing. This audit is a non-integrated audit of a privately held client. Which of the following actions must be part of our response to this deficiency? Select the correct option and select Submit. 1. Modify our substantive procedures for accounts receivable 2. Extend our procedures to evaluate management's assessment and actions to remediate the control 3. Modify our control risk assessment to "not rely" 4. Test the December reconciliation once management has remediated the control

Question 1 Control: On a monthly basis, the financial analyst performs the reconciliation of the AR subledger data to the general ledger balance. All reconciling items in excess of US$15,000 are investigated and resolved. Deficiency: During our test of control of a sample of 2 months from the first nine months of the audit period, we identified unexplained reconciling items in excess of US$ 15,000 in the reconciliations for the two months selected for testing. This audit is a non-integrated audit of a privately held client. Which of the following actions must be part of our response to this deficiency? Select the correct option and select Submit. 1. Modify our substantive procedures for accounts receivable 2. Extend our procedures to evaluate management's assessment and actions to remediate the control 3. Modify our control risk assessment to "not rely" 4. Test the December reconciliation once management has remediated the control

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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