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Audit Questions and Answers (Q&A)

John Smith
Answered: Jul 03, 2020
Tests of details of balances are designed to determine the reasonableness of the balances in sales, accounts receivable, and other account balances that are affected by the sales and collection...Read More

3 Answers

1878 views
M. Krasinski, Content Writer
Answered: Jul 20, 2018
A letter of representation is also known as a management representation letter. The answer to this is letter A. This will serve as an introduction to company personnel and authorization to...Read More

5 Answers

1547 views
John Smith
Answered: Jul 03, 2020
The most important difference between (a) tests of controls and substantive tests of transactions and (b) tests of details of balances is in what the auditor wants to measure. in tests of controls...Read More

1 Answer

1143 views
John Smith
Answered: Jul 03, 2020
A proper cutoff of purchases and sales is heavily dependent on the physical inventory observation because a proper cutoff of sales requires that finished goods inventory included in the physical...Read More

1 Answer

716 views
H.Jennifer
Answered: Feb 03, 2018
An audit is an assessment of a business or a company that analyzes the place and assess whether it is functioning at certain standards or not. When it comes to an auditor’s responsibility,...Read More

2 Answers

547 views
Matz Lewis Clark, College student
Answered: Jan 17, 2019
This type of approach may be considered more conservative but will be absolutely necessary to make sure that people will be paying for the items that they have ordered on time. Accounts payable...Read More

2 Answers

492 views
John Smith
Answered: Jul 03, 2020
Acceptable risk of incorrect acceptance (aria) is the risk the auditor is willing to take of accepting a balance as correct when the true misstatement in the balance is greater than tolerable...Read More

1 Answer

466 views
G.Carol
Answered: Feb 19, 2018
An auditor is a person who conducts the assessment of a business or a workplace. He needs to act in a professional manner such that the assessment has minimal external influence and is fair....Read More

2 Answers

351 views
John Smith
Answered: Jul 03, 2020
Monetary unit sampling is a method whereby the population is defined as the individual dollars (or other currency) making up the account balance. a random sample is drawn of these individual...Read More

1 Answer

318 views
John Smith
Answered: Jul 03, 2020
Analytical procedure/type of potential misstatement1. compare gross margin percentage with previous years. overstatement or understatement of inventory amounts (prices and/or...Read More

1 Answer

296 views
John Smith
Answered: Jul 03, 2020
Auditing is a subset of attestation that involves the issuance of an opinion regarding the fairness of financial statements.

1 Answer

287 views
John Smith
Answered: Jul 03, 2020
Auditor obtains reasonable assurance about whether the financial statements are free of material misstatements.

1 Answer

273 views
C. Block, English Professor
Answered: Jan 17, 2019
Letter c is the proper answer to this question. This will help state the opinion regarding the data that has been gathered. For example, there will be an opinion regarding the financial...Read More

3 Answers

271 views
Smarss
Answered: Jul 03, 2020
The auditor must be without bias with respect to the client under audit.

1 Answer

268 views
Smarss
Answered: Jul 03, 2020
To add credibility where appropriate, since the client may not be perceived as objective with respect to its own financial statements.

1 Answer

254 views

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