answer questions

User Generated

wsx104

Business Finance

Description

Answer each of the following questions. 1. With respect to audit evidence, a) fully explain the following sentence: “Audit evidence must be persuasive, not convincing.” Why must an auditor keep remembering this during the collection of evidence during an audit? b) what is meant by the “nature, timing, and extent” of evidence? 2. With respect to Accounts Receivable confirmations, a) fully explain what is meant by accounts receivable confirmations. b) completely explain the two types of accounts receivable confirmations, including when each type would typically be used. c) fully describe Accounts Receivable confirmation process (what are the steps?). 3. Answer each of the following questions. a) Define analytical procedures. When are they required and when are they used? b) Why should an auditor understand the audit client’s industry and business? Explain your answer thoroughly. c) Fully explain how to perform horizontal analysis on 1. an income statement 2. a balance sheet (More than just the formula is needed) d) Fully explain how to perform vertical analysis on 1. an income statement 2. a balance sheet (More than just the formula is needed) e) Explain what must be done with the results calculated from an analytical procedure? Be specific. 4. A) Identify and explain the two major categories of audit tests. B) What is the relationship between the two major categories identified in 4A. Fully explain how this relationship affects the audit plan.

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Hello, have a look at it and get back to me

Auditing
Student’s name
Institution

1. a) audit evidence is usually persuasive rather than convincing because; first since an audit
must be finished in a sensible measure of time and at a sensible cost, the auditor looks at just an
example of the exchanges that make the class out of transactions or account balance. Second,
because of the idea of confirmation, auditors should frequently depend on proof that isn't
flawlessly reliable. The sorts of evidence analyzed by the auditor have distinctive degrees of
unwavering quality, and even very dependable proof has shortcomings. The auditor should keep
remembering this because the proof got by the auditor at times gives completely persuading
evidence around an auditor objective.

b)


Nature means the type of test, control or substantive evidence that is available and also
the audit procedures which is to be specifically performed.



Time is when it is to be performed and also the amount of time to be taken. This is when
all the evidence and considerations are available.



Extent this the size or quantity of evidence available in an auditing to be performed

2. a) Confirmation of accounts receivable, is a procedure that is generally accepted auditing
procedure. During an audit, it is presumed that an auditor will request for confirmation of
accounts receivable. Confirmation is conduc...


Anonymous
Just what I needed…Fantastic!

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Similar Content

Related Tags