When accounts receivable are confirmed at an interim date, auditors need not be concerned witha. Obtaining a summary of receivables transactions from the interim date to the year-end date.b. Obtaining a year-end trial balance of receivables, comparing it to the interim trial balance, and obtaining evidence and explanations for large variations. c. Sending negative confirmations to all customers as of the year-end date.d. Considering the necessity for some additional confirmations as of the balance sheet date if balances have increased materially

Q: State the appropriate audit opinion that the auditor would require.

A: Among various Auditor's Opinions, one of the opinion can be Disclaimer of Opinion.  Auditor needs to…

Q: Renewal of notes maturing shortly after the balance sheet date may alter the auditors’ thinking as…

A: Introduction: Balance sheet: It contains all Assets and liabilities of the company for the period…

Q: MENT 2: The process of analyzing subsidiary ledger acounts of accounts receivable to ine those…

A: Answer: Concept: Audit is performed with proper verification and compliance tests.

Q: The purpose of testing the quality of debits and credits is to find errors recorded in the amounts.…

A: The purpose of testing the quality of debits and credits in accounting is to ensure that all…

Q: A client that recently loosened its credit-granting policies uses percentages of aging categories as…

A: Lets understand the basics. Management prepares allowance for doubtful debt account in order to…

Q: Part I: The following issues listed below were not discovered by your audit team member. Required:…

A: Audit assertions are the statements made by the management of auditee entity relating to the…

Q: Based on an assessment of audit risk, the auditors are concerned with the following two risks:…

A: Introduction: Audit risk is the possibility that an auditor would overlook faults or commit fraud…

Q: Imagine that you were auditing accounts receivable balances to confirm sales and found significant…

A: The objective of this question is to find an alternative approach to confirm sales revenue when…

Q: Which of the following audit procedures is a dual-purpose test, which tests the effectiveness of…

A: A dual-purpose test is an audit method that serves as a control and substantive test at the same…

Q: c. Calculate ered in tes с. Miss

A: UML stands for Upper Misstatement Limit which refers to the maximum dollar overstatement that could…

Q: financial statement assertion for accounts receivable

A: Option a is wrong because the lower value of receivable turnover than that of industry does not…

Q: Statement 1: Common to future purchase commitments is the fact that they should be recorded as…

A: Audit refers to inspection or examination of the financial statements of the company through auditor…

Q: all statements are true B. all statements are false C. S1 and S2 are true D. S1 and S3 are true

A: Correct option : B

Q: then, discuss the statement content, stating examples of substantive analytical procedures which…

A:

Q: basic step in auditing unclaimed salaried and wages is to verify disposition of the account…

A: Auditing means the independent checking of company operation by outsider. Auditor is a qualified and…

Q: True or False Accounts receivable confirmations are likely to be more effective for the existence…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: To correct all errors they discover in the accounting records for the year under audit. The auditors…

A: The auditor has a responsibility to plan and perform the audit to obtain reasonable assurance about…

Q: A client uses percentages of aging categories to calculate the allowance for doubtful accounts.…

A: The business entities are required to audit their financial statements so as to know whether the…

Q: risk over the cash disbursement function, the auditor notes a delay in recording disbursements. This…

A: when talking about control risk it is the risk that a material misstatement could occur this may be…

Q: What audit assertions and internal controls deal with the following and how are the assertions and…

A: Assertions: These are the claims made by the management regarding certain financial information and…

Q: a change in accounting principle is inseparable from the effect of a change in estimate, this…

A: The change in accounting  change than  accounting principles change in accounting estimate in…

Q: Specific balance-related audit objective Accounts receivable are appropriately aggregated and…

A: The importance of assertions in auditing cannot be overstated. In the auditing process, assertions…

Q: Why do you think the loan officer suspected that the accounts had not been adjusted prior to the…

A: 1. Rule of Adjustments - .In an accrual basis of accounting all Income and Expenses incurred during…

Q: 3. An auditor should perform alternative procedures to substantiate the existence of accounts…

A: Answer:-  Account receivable meaning:- The amount owned to a business for goods or services that…

Q: State three types of differences that might be observed in theconfirmation of accounts receivable…

A: The simple meaning of word Audit is 'doing inspection or examination' and the process of audit is…

Q: Which of the following conditions identified during fieldwork of an audit is most likely to affect…

A: The correct answer is: (D) Missing documents  Missing documents would most likely affect the…

Q: An auditor is likely to perform each of the below procedures to obtain evidence regarding the…

A: Audit  Contrary to unfavorable opinions, scope restrictions or the presence of significant…

Q: The following are numerous management assertions associated to sales and account receivable. Account…

A: Assertions are claims that are made by the management of the business entity that the information…

Q: performing an audit, you encounter an adjusting journal entry recorded at year-end that contains a…

A: The audit process refers to a systematic and independent examination of an organization's financial…

Q: Applying substantive tests to the details of asset and liability accounts as of an interim date,…

A: SOLUTION- Substantive testing is an audit procedure that examines the financial statements and…

Q: Which of the following substantive procedures would most likely help an auditor determine whether…

A: Substantive procedures are performed to detect the material misstatement or fraud at the assertion…

Q: The current file of an auditor's working papers generally would not include * A. Flowchart of the…

A: The correct answer for the above mentioned question is given in the following steps for your…

Q: Which of the following statements is not true? a. Tests of transactions are often performed…

A: In Auditing there are two types of procedures involved and are enumerated as below: a) Substantive…

Q: When auditing contingent liabilities, which of the following procedures would be MOST effective? O…

A: One kind of potential financial obligation known as a contingent liability is one that is predicated…

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.