Chapter 20, Problem 20.1RQ

To determine

Concept Introduction:

Audit procedure is a method performed by the auditor, to gather the possible document that helps the auditors to make a strong conclusion. The audit procedure helps to determine the nature of the financial information provided by the customers and all kinds of risks that occur in the financial statements. Audit procedure performs different test of controls to avoid the risks.

To describe: The four stages of the auditor dispute process

Explanation of Solution

The auditor dispute process includes the four stages while setting the dispute:

• The first stage includes the steps or actions taken against the users when loss incurred in the financial statement related to fraudulent, bankruptcy, and embezzlement of assets.
• The second stage includes the investigation and verification of the audit process by authorities before starting any legal proceedings.
• The third stage includes the beginning of legal procedure that helps to fill of the suit.
• The fourth and last stage includes a conclusion of the process, action and decision of court against dispute, and final judgment.