Auditing & Assurance Services: A Systematic Approach (Irwin Accounting)
10th Edition
ISBN: 9780077732509
Author: William F Messier Jr, Steven M. Glover Associate Professor, Douglas F. Prawitt Associate Professor
Publisher: McGraw-Hill Education
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Question
Chapter 15, Problem 15.1RQ
To determine
Concept Introduction:
To describe:Reasons for auditors to generally follow the substantive strategy when audit the long term debt and capital account.
Expert Solution & Answer
Explanation of Solution
- A substantive strategy helps to identify the evidence related to a particular transaction, or it helps to collect the reasonable evidence for a specific assertion. While auditing the long term debt and capital account, the auditor follows the substantive strategy, because it is more efficient to use and provide an appropriate result.
- The reliance strategy describes when the auditor depends on the test of control to perform the audit, and the auditor should have proper knowledge of tests of controls. The auditors would follow the reliance strategy when the organization continuously involved in the financing activities and performs tests of controls.
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Chapter 15 Solutions
Auditing & Assurance Services: A Systematic Approach (Irwin Accounting)
Ch. 15 - Prob. 15.1RQCh. 15 - Prob. 15.2RQCh. 15 - Prob. 15.3RQCh. 15 - Prob. 15.4RQCh. 15 - Prob. 15.5RQCh. 15 - Prob. 15.6RQCh. 15 - Prob. 15.7RQCh. 15 - Prob. 15.8RQCh. 15 - Prob. 15.9RQCh. 15 - Prob. 15.10RQ
Ch. 15 - Prob. 15.11MCQCh. 15 - Prob. 15.12MCQCh. 15 - Prob. 15.13MCQCh. 15 - Prob. 15.14MCQCh. 15 - Prob. 15.15MCQCh. 15 - Prob. 15.16MCQCh. 15 - Prob. 15.17MCQCh. 15 - Prob. 15.18MCQCh. 15 - Prob. 15.19MCQCh. 15 - Prob. 15.20MCQCh. 15 - Prob. 15.21PCh. 15 - Prob. 15.22PCh. 15 - Prob. 15.23PCh. 15 - Prob. 15.24P
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