Substantive procedure does not involve in: Checking the operating effectiveness of internal control Test of details of accounts balances and disclosures. Substantive analytical procedures. Test of details of classes of transactions.

Q: Which of the following is not an element of internal control?   A) Only promoting from within. B)…

A: Internal control is the process to keep the information organized, reduce errors and improves…

Q: Which of the following procedures would maintain threats at an acceptable level and not impair…

A: In the realm of auditing and attestation services, maintaining an acceptable level of threats while…

Q: do you agree with the statement it audit should be considered absolute because it implies a…

A: An audit is a methodical  examination and verification of  fiscal records, accounts, procedures,…

Q: whether there is a reasonable possibility that the company's internal control system will fail to…

A: Internal control is the managements’ effective and efficient controls for achieving goals and…

Q: Explain why deficiencies in internal controls might not always result in significant misstatements…

A: Internal controls are the systems, rules, and processes implemented by a company to ensure the…

Q: The risk that the auditors will conclude, based on substantive procedures, that a material…

A: The risk you are referring to is known as the risk of substantive procedures not detecting a…

Q: An audit trail is a step-by-step record by which accounting data can be traced to its source.…

A: Vouching refers to checking the business transactions with their respective source documents.

Q: Which of the following is not a common procedure for assessing operating effectiveness of preventive…

A: Preventive controls is a measure of safeguards implemented by an organisation to proactively…

Q: What category of control procedures best describes a reconciliation account, such as Accounts…

A: Internal Controls:   It refers to a process for ensuring the business is conducted in an effective…

Q: State the relationship between the confirmation of accountsreceivable and the results of the tests…

A: Auditor performs these two test understand the efficiency of control systems, policies and…

Q: Which of the following is not a major reason for maintaining an audit trail for a computer system?…

A: An audit trail in a computer system is a record of all activities that have been undertaken and…

Q: 1. What is the primary reason that auditors’ assess internal control? a)To determine the risk of…

A: Internal Control:It is a process that is being  effected by an entity's board of directors,…

Q: ubstantive analytical procedures are more reliable A) In an industry environment that is unstable…

A: Substantive Analytical procedures are those procedures which is used for large/high volume…

Q: In substantive procedures, why is the emphasis on the completeness assertion for liabilities instead…

A: Substantive procedures are the activities performed to ensure that there is no material misstatement…

Q: In which of the following circumstances would an auditor expect to find that an entity had…

A: Definition: Audit: Audit is the process of verification of the compliance of the financial…

Q: Internal control is enhanced by separating the control of a transaction from the record-keeping…

A: Internal control function is implemented in the organizations so that internal policies and…

Q: In a financial statement audit, inherent risk represents a. The risk that misstatements could occur…

A: In financial and managerial accounting, Inherent risk is that the risk expose by a slip-up or…

Q: Obtaining an understanding of an entity's internal control is more likely to be performed more…

A: Internal controls are a set of preventive measures that are put in place with the purpose of…

Q: Audit evidence obtained through inquiry of management about proper segregation of custodianship and…

A: Solution Reliability of audit evidence The reliability of audit evidence shall be considered based…