Identify the activity that will be done for reducing control risk approach and substantive approach.

Question

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Answer 1

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 13, Problem 35C

Part I a.

To determine

Identify the activity that will be done for reducing control risk approach and substantive approach.

Part I b.

To determine

Explain the advantagesof reducing control risk approach Person RS planned to used

have over the substantive approach previously used in the audit of Company MP.

Part I c.

To determine

Explain the advantages of substantive approach over the reducing control riskapproach.

Part IIa.

To determine

Describe the meaning of 0.17 in audit.

Part II b.

To determine

Calculate Planned Detection Risk (PDR) assuming that Person RS had assessed control risk at 100% and all otherrisks as they are stated.

Part IIc.

To determine

Describe the effect of the answer in requirement b. on the planned audit proceduresand sample size in the audit of inventory compared with the .17 calculated by Person RS.

Part III.

To determine

Explain whether the revised judgements of staff person on the effect of tests controlson planned substantive tests and also explain the nature basis of any disagreement. Explain the implicationsof the results on the auditor’s internal control report if auditor B issued a report on internal control over financial reporting.

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Answer 2

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 13, Problem 35C

Part I a.

To determine

Identify the activity that will be done for reducing control risk approach and substantive approach.

Part I b.

To determine

Explain the advantagesof reducing control risk approach Person RS planned to used

have over the substantive approach previously used in the audit of Company MP.

Part I c.

To determine

Explain the advantages of substantive approach over the reducing control riskapproach.

Part IIa.

To determine

Describe the meaning of 0.17 in audit.

Part II b.

To determine

Calculate Planned Detection Risk (PDR) assuming that Person RS had assessed control risk at 100% and all otherrisks as they are stated.

Part IIc.

To determine

Describe the effect of the answer in requirement b. on the planned audit proceduresand sample size in the audit of inventory compared with the .17 calculated by Person RS.

Part III.

To determine

Explain whether the revised judgements of staff person on the effect of tests controlson planned substantive tests and also explain the nature basis of any disagreement. Explain the implicationsof the results on the auditor’s internal control report if auditor B issued a report on internal control over financial reporting.

Expert Solution & Answer

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Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 13, Problem 35C

Part I a.

To determine

Identify the activity that will be done for reducing control risk approach and substantive approach.

Part I b.

To determine

Explain the advantagesof reducing control risk approach Person RS planned to used

have over the substantive approach previously used in the audit of Company MP.

Part I c.

To determine

Explain the advantages of substantive approach over the reducing control riskapproach.

Part IIa.

To determine

Describe the meaning of 0.17 in audit.

Part II b.

To determine

Calculate Planned Detection Risk (PDR) assuming that Person RS had assessed control risk at 100% and all otherrisks as they are stated.

Part IIc.

To determine

Describe the effect of the answer in requirement b. on the planned audit proceduresand sample size in the audit of inventory compared with the .17 calculated by Person RS.

Part III.

To determine

Explain whether the revised judgements of staff person on the effect of tests controlson planned substantive tests and also explain the nature basis of any disagreement. Explain the implicationsof the results on the auditor’s internal control report if auditor B issued a report on internal control over financial reporting.

Expert Solution & Answer

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Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 13, Problem 35C

Part I a.

To determine

Identify the activity that will be done for reducing control risk approach and substantive approach.

Part I b.

To determine

Explain the advantagesof reducing control risk approach Person RS planned to used

have over the substantive approach previously used in the audit of Company MP.

Part I c.

To determine

Explain the advantages of substantive approach over the reducing control riskapproach.

Part IIa.

To determine

Describe the meaning of 0.17 in audit.

Part II b.

To determine

Calculate Planned Detection Risk (PDR) assuming that Person RS had assessed control risk at 100% and all otherrisks as they are stated.

Part IIc.

To determine

Describe the effect of the answer in requirement b. on the planned audit proceduresand sample size in the audit of inventory compared with the .17 calculated by Person RS.

Part III.

To determine

Explain whether the revised judgements of staff person on the effect of tests controlson planned substantive tests and also explain the nature basis of any disagreement. Explain the implicationsof the results on the auditor’s internal control report if auditor B issued a report on internal control over financial reporting.

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Answer 5

Chapter 13, Problem 35C

Part I a.

To determine

Identify the activity that will be done for reducing control risk approach and substantive approach.

Part I b.

To determine

Explain the advantagesof reducing control risk approach Person RS planned to used

have over the substantive approach previously used in the audit of Company MP.

Part I c.

To determine

Explain the advantages of substantive approach over the reducing control riskapproach.

Part IIa.

To determine

Describe the meaning of 0.17 in audit.

Part II b.

To determine

Calculate Planned Detection Risk (PDR) assuming that Person RS had assessed control risk at 100% and all otherrisks as they are stated.

Part IIc.

To determine

Describe the effect of the answer in requirement b. on the planned audit proceduresand sample size in the audit of inventory compared with the .17 calculated by Person RS.

Part III.

To determine

Explain whether the revised judgements of staff person on the effect of tests controlson planned substantive tests and also explain the nature basis of any disagreement. Explain the implicationsof the results on the auditor’s internal control report if auditor B issued a report on internal control over financial reporting.

Answer 6

Chapter 13, Problem 35C

Part I a.

To determine

Identify the activity that will be done for reducing control risk approach and substantive approach.

Answer 7

Chapter 13, Problem 35C

Part I a.

To determine

Identify the activity that will be done for reducing control risk approach and substantive approach.

Answer 8

Part I b.

To determine

Explain the advantagesof reducing control risk approach Person RS planned to used

have over the substantive approach previously used in the audit of Company MP.

Answer 9

Part I b.

To determine

Explain the advantagesof reducing control risk approach Person RS planned to used

have over the substantive approach previously used in the audit of Company MP.

Answer 10

Part I c.

To determine

Explain the advantages of substantive approach over the reducing control riskapproach.

Answer 11

Part I c.

To determine

Explain the advantages of substantive approach over the reducing control riskapproach.

Answer 12

Part IIa.

To determine

Describe the meaning of 0.17 in audit.

Answer 13

Part IIa.

To determine

Describe the meaning of 0.17 in audit.

Answer 14

Part II b.

To determine

Calculate Planned Detection Risk (PDR) assuming that Person RS had assessed control risk at 100% and all otherrisks as they are stated.

Answer 15

Part II b.

To determine

Calculate Planned Detection Risk (PDR) assuming that Person RS had assessed control risk at 100% and all otherrisks as they are stated.

Answer 16

Part IIc.

To determine

Describe the effect of the answer in requirement b. on the planned audit proceduresand sample size in the audit of inventory compared with the .17 calculated by Person RS.

Answer 17

Part IIc.

To determine

Describe the effect of the answer in requirement b. on the planned audit proceduresand sample size in the audit of inventory compared with the .17 calculated by Person RS.

Answer 18

Part III.

To determine

Explain whether the revised judgements of staff person on the effect of tests controlson planned substantive tests and also explain the nature basis of any disagreement. Explain the implicationsof the results on the auditor’s internal control report if auditor B issued a report on internal control over financial reporting.

Answer 19

Part III.

To determine

Explain whether the revised judgements of staff person on the effect of tests controlson planned substantive tests and also explain the nature basis of any disagreement. Explain the implicationsof the results on the auditor’s internal control report if auditor B issued a report on internal control over financial reporting.

Answer 20

Expert Solution & Answer

Answer 21

Expert Solution & Answer

Answer 22

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Answer 23

Ch. 13 - Prob. 1RQ Ch. 13 - Prob. 2RQ Ch. 13 - Prob. 3RQ Ch. 13 - Prob. 4RQ Ch. 13 - Prob. 5RQ Ch. 13 - Prob. 6RQ Ch. 13 - Explain how the calculation and comparison to...Ch. 13 - Prob. 8RQ Ch. 13 - Prob. 9RQ Ch. 13 - For each of the eight types of evidence discussed...

Identify the activity that will be done for reducing control risk approach and substantive approach.

Solution Summary: The author explains the advantages of reducing control risk approach over substantive approach in the audit of Company MP.

Identify the activity that will be done for reducing control risk approach and substantive approach.

Explain the advantagesof reducing control risk approach Person RS planned to used

have over the substantive approach previously used in the audit of Company MP.

Explain the advantages of substantive approach over the reducing control riskapproach.

Describe the meaning of 0.17 in audit.

Calculate Planned Detection Risk (PDR) assuming that Person RS had assessed control risk at 100% and all otherrisks as they are stated.

Describe the effect of the answer in requirement b. on the planned audit proceduresand sample size in the audit of inventory compared with the .17 calculated by Person RS.

Want to see the full answer?

Chapter 13 Solutions

Identify the activity that will be done for reducing control risk approach and substantive approach.

Solution Summary: The author explains the advantages of reducing control risk approach over substantive approach in the audit of Company MP.

Identify the activity that will be done for reducing control risk approach and substantive approach.

Explain the advantagesof reducing control risk approach Person RS planned to used have over the substantive approach previously used in the audit of Company MP.

Explain the advantages of substantive approach over the reducing control riskapproach.

Describe the meaning of 0.17 in audit.

Calculate Planned Detection Risk (PDR) assuming that Person RS had assessed control risk at 100% and all otherrisks as they are stated.

Describe the effect of the answer in requirement b. on the planned audit proceduresand sample size in the audit of inventory compared with the .17 calculated by Person RS.

Want to see the full answer?

Chapter 13 Solutions

Explain the advantagesof reducing control risk approach Person RS planned to used

have over the substantive approach previously used in the audit of Company MP.