TRUE OR FALSEWhen sampling is used by an auditor, an element of uncertainty is present in the auditor's conclusion. When evaluating the results of specific items selected for testing, its effects must be projected to the whole population. In performing external confirmations, the management prepares the requests and receives and replies for communication to the auditor. As the use of going concern assumption is always relevant un audit, the auditor shall evaluate whether uncertainty exists as the company's ability to continue as going concern. Adverse key financial ratios and negative operating cash flows are some events that may cast doubt about the going concern of a company. In searching for unrecorded liabilities, the population of audit interest is the schedule of accounts payable at period end. Audit sampling refers to the application of audit procedures to less than 100% of the items in an account balance or class of transactions for the purpose of evaluating some of its characteristics. If written management representations are not provided, the auditor shall assess the possible effects on the auditor's opinion. If the detection risk is at above minimum level, less effective audit procedures may applied. The addressee of the representation letter Is the intended users of the financial statements.

‘’Since you have asked multiple question, we will solve the first question for you. If you want any…

Answered: TRUE OR FALSE When sampling is used by…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

TRUE OR FALSE

When sampling is used by an auditor, an element of uncertainty is present in the auditor's conclusion.

When evaluating the results of specific items selected for testing, its effects must be projected to the whole population.

In performing external confirmations, the management prepares the requests and receives and replies for communication to the auditor.

As the use of going concern assumption is always relevant un audit, the auditor shall evaluate whether uncertainty exists as the company's ability to continue as going concern.

Adverse key financial ratios and negative operating cash flows are some events that may cast doubt about the going concern of a company.

In searching for unrecorded liabilities, the population of audit interest is the schedule of accounts payable at period end.

Audit sampling refers to the application of audit procedures to less than 100% of the items in an account balance or class of transactions for the purpose of evaluating some of its characteristics.

If written management representations are not provided, the auditor shall assess the possible effects on the auditor's opinion.

If the detection risk is at above minimum level, less effective audit procedures may applied.

The addressee of the representation letter Is the intended users of the financial statements.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions