456 Chapter Eleven Appendix 11B Illustrative Audit Case: Keystone Computers & Networks, Inc. Part III: Substantive Tests—Accounts Receivable and Revenue This part of the audit case illustrates the manner in which the auditors design substantive tests of balances. The substantive tests are illustrated for two accounts—receivables and revenue. This aspect of the audit is illustrated with the following audit documentation: • ABC’s risk assessment working paper that combines the auditors’ assessments
Question 5- Explain the difference between formal (or procedural) equality and substantive equality. Formal equality is known as the formal, legal equality. This is the equality that is seen as one law should be applied to all people, social and personal characteristics are no factor. Formal equality aims to distribute equality fairly and evenly, and aims to treat people the same. Formal equality does not ensure the wellbeing of individuals based on race, ethnicity, sex, age etc. Unfortunately
whether the conflict is procedural or substantive, 2) whether a choice of law provision in a contract should be applied, and 3) the application of a choice of law rule. Here, it appears that the choice of law provision selecting Old York should be applied because none of the exceptions to the general rule apply. I. Procedural vs. Substantive Law The first step under the Second Restatement approach is to determine whether a rule is rule is procedural or substantive. If a rule is procedural than a forum
AUDITING THE REVENUE CYCLE Audit procedures associated with the revenue cycle is the main point in this report. Basically, it is divided into three sections. First, it begins with a review of alternative technologies used in both legacy and modern system. The focus is on the key operational task performed under each technological environment. The second section discusses the revenue cycle audit objectives, controls and test of controls that an auditor would perform to gather evidence needed to
AUDITING THEORY 8. Which of the following should an auditor do when control risk is assessed at the maximum level? A. Perform fewer substantive tests of details. B. Perform more tests of controls. C. Document the assessment. D. Document the internal control system more extensively. 9. Which of the following is least likely to be a test of a control? A. Inquiries of appropriate personnel. B. Inspection of management’s engagement letter. C. Observation of the application of a policy. D.
What have we learned about American courts and substantive law? We have learned that there are many parts of the American courts. Each court has its own responsibility, in this paper I will specify all of the responsibilities and the courts, state and federal, I will also identify the difference between them for better understanding. Furthermore I will continue to go into detail and state what I have learned about American courts and substantive law. There are four main federal courts in America;
Introduction In the early days of independence the audit, audit methods are for the detailed audit approach which is using the accounting books of the audited entity to verify case by case basis, and for the purpose of exposing the wrong check fraud; With the expansion of enterprise scale and complex business activities, audit sampling appears that, according to accounting statements balance and accounting data sample extraction section, and then inferring the overall result of the review. This
Question #1 (AICPA.900546AUD-AU) | | | The first general standard requires that an audit of financial statements is to be performed by a person or persons having | A. Seasoned judgment in varying degrees of supervision and review. | | B. Adequate technical training and proficiency. | | The first general standard requires that the audit be performed by individuals with adequate technical training and proficiency as an auditor. The auditor must have obtained a proper education in accounting
Audit methodology The audit methodology will be used as a step by step guideline that will be used by the auditors to keep track of their progress and enable them to ensure that quality standards are maintained during the auditing phase. To audit the International Bank of Africa information system we will go through five phases or steps. Step one: Planning The first phase will determine the sort of audit team that will be assembled. The team selected will be best placed to handle all obstacles and
Audit Failure Prevention From 2003 and 2006, the auditor gave an opinion that Dell’s financial statements were clean and sufficiently reliable. This was not the case when investigated by the Security and Exchange Commission, which prompted management to institute an internal audit committee that concurred with the unreliability of the financial reports of the fiscal years and the quarterly reports. The auditor did not identify or address the risk of material misstatement by Dell’s accountants.