Auditing And Assurance Services
17th Edition
ISBN: 9780134897431
Author: ARENS, Alvin A.
Publisher: PEARSON
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Question
Chapter 13, Problem 15RQ
To determine
Explain the reason for designing the tests of details of balances before performing tests of controls and substantive tests of transactions. Give assumptions that the auditor must and what steps auditor perform if assumption went wrong.
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Students have asked these similar questions
Why is it desirable to design tests of details of balances beforeperforming tests of controls and substantive tests of transactions? State the assumptionsthat the auditor must make in doing so. What does the auditor do if the assumptions arewrong?
Why should receiving reports be prenumbered in the first place? With the help of the receiving reports, what assertions would an auditor test, and how would the auditor go about doing so?
Are internal controls required even if an auditor doesn't plan to rely on them in his audit? Explain.
Chapter 13 Solutions
Auditing And Assurance Services
Ch. 13 - Prob. 1RQCh. 13 - Prob. 2RQCh. 13 - Prob. 3RQCh. 13 - Prob. 4RQCh. 13 - Prob. 5RQCh. 13 - Prob. 6RQCh. 13 - Explain how the calculation and comparison to...Ch. 13 - Prob. 8RQCh. 13 - Prob. 9RQCh. 13 - For each of the eight types of evidence discussed...
Ch. 13 - Prob. 11RQCh. 13 - Prob. 12RQCh. 13 - Prob. 13RQCh. 13 - Prob. 14RQCh. 13 - Prob. 15RQCh. 13 - Prob. 16RQCh. 13 - Prob. 17RQCh. 13 - Prob. 18RQCh. 13 - Prob. 19RQCh. 13 - Prob. 20RQCh. 13 - Prob. 21.1MCQCh. 13 - Prob. 21.2MCQCh. 13 - A conceptually logical approach to the auditors...Ch. 13 - Prob. 22.1MCQCh. 13 - Prob. 22.2MCQCh. 13 - Prob. 22.3MCQCh. 13 - Prob. 23.1MCQCh. 13 - b. Substantive analytical procedures are most...Ch. 13 - Prob. 23.3MCQCh. 13 - Prob. 24DQPCh. 13 - Prob. 25DQPCh. 13 - Prob. 26DQPCh. 13 - Prob. 27DQPCh. 13 - Prob. 28DQPCh. 13 - Prob. 29DQPCh. 13 - Prob. 30DQPCh. 13 - Prob. 31DQPCh. 13 - Prob. 32DQPCh. 13 - Prob. 33DQPCh. 13 - Prob. 34DQPCh. 13 - Prob. 35DQP
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Similar questions
- When would an auditor prefer to conduct a black-box audit? What about a white-box audit?arrow_forwardIs it necessary for an auditor to get a knowledge of a client's internal controls if the auditor does not plan to depend on the client's internal controls in the course of the audit? Explain.arrow_forwardWhat are the benefits of subtantive test of transactions in auditing?arrow_forward
- Which one below is not an example of auditors'substantive testing? Select one: a. Controls testing. b. Tests of transactions. c. Tests of balances. d. Substantive analytical procedures.arrow_forwardHow do Analytical Procedures assist the auditor?arrow_forwardConsider the concepts of sufficient and appropriate audit evidence. Assess how audit risk relates to audit evidence. How do auditors audit accounting estimates and other subjective information? What are analytical procedures, and why are they a useful audit tool? Explain the importance of audit documentation.arrow_forward
- Define and give examples of off-balance-sheet information. Why should auditors be concerned with such items?arrow_forwardWhat are some factors that complicate the post-audit process?arrow_forwardWhat does an operational audit attempt to measure? Does an operational audit involve more or fewer subjective judgments than a compliance audit or an audit of financial statements? Explain. To whom is the report usually directed after completion of an operational audit?arrow_forward
- Distinguish between errors and irregularities. Which do you think concern auditors the most?arrow_forwardWhat is the auditing definition of error and fraud, and how should the auditor deal with each?arrow_forwardThe risk that material errors will not be detected is directly controllable by the auditor through substantive tests of details and other substantive audit procedures. IS THE STATEMENT TRUE OR FALSE? WHY?arrow_forward
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