What type of substantive testing (not test of controls) should be used for each of the following accounts?  1. Inventory 2. Accounts Payable 3. Sales Revenue

Q: 9. Consider Special Reports. What type involves a "different basis of accounting"? a.…

A:

Q: What tools do auditors use to verify the ending balances in the various accounts in the acquisition…

A: Auditors are professionals who are responsible for examining and evaluating the financial records…

Q: What are the challenges and risks associated with implementing control procedures in accounting, and…

A: Control procedures in accounting refer to a set of policies, processes, and measures implemented by…

Q: How does an audit of financial statements pertain to agency theory?

A: Agency theory is an approach to analysing various relationship in term of principal and agent. The…

Q: Which of the following are considered secondary characteristics of accounting information? a.…

A: Accounting information is used by various users for different purposes. The primary characteristics…

Q: Alpha Co. reports inventory on its balance sheet using the same generally accepted methods as…

A: option C - Comparatibility Comparibility is used to enables usersto identify similarities and…

Q: Accounting policies, methods, and estimates used in preparing fi nancial statements aremost likely…

A: Auditor's report is considered to be an very important tool particularly for companies as they…

Q: How do the content of reports and the verification of reports differ between managerial and…

A: The content of reports and the verification process in managerial and financial accounting differ in…

Q: How is Accounts Payable audited?

A: Accounts payable:   Accounts payable refers to the money payable by the company to outside entities…

Q: A typical substantive procedure for receivable balance and sales transactions may include…

A: Assertions: Assertions are used by the auditor to consider the different types of misstatements that…

Q: implementation and application of  Achieves Accounting Uniformity

A: The financial statement shows the financial activities of  the company. It involves the preparation…

Q: 16. Which of the following is a contra account? a. Sales discounts b. Purchase returns and…

A: In accounting, a contra account is a unique kind of account that is used to lower the balance of a…

Q: How do auditors audit accounting estimates and other subjective information?

A: Accounting estimate is referred to as the recognition or measurement of an account, transaction,…

Q: What substantive analytical procedures might an auditor use to perform an analytical procedure for…

A: The accounts payable liability account in the company's financial statements represents the sum of…

Q: An audit trail enables a person to trace a source document to its ultimate effect on the financial…

A: Audit trails are manual or electronic records that are chronologically defined events to provide…

Q: Standards for comparisons in financial statement analysis does not include: a. Customers’ standards.…

A: Financial statements are statements that are prepared at the end of the financial period in order to…

Q: What is the normal balance of the contra-revenue accounts: Sales Return and Sales Discount and…

A: As per dual concept of accounting, every transaction has dual impact on the books of accounts.The…

Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.