Answered: Analytical procedures are required as a…

Analytical procedures are required as a part of the: Internal control assessment. Detailed tests of balances. Procedures performed near the end of the audit. Substantive testing.

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter8: Specialized Audit Tools: Sampling And Generalized Audit Software

Section: Chapter Questions

Problem 2TFQ

See similar textbooks

Related questions

Q: Which of the following internal control components involves the ongoing evaluation of the…

A: Internal controls are implemented to prevent fraud in the organization. These are the rules or…

Q: The preliminary assessment of control risk includes all the following procedures except Consider the…

A: Preliminary assessment of control risk is the process of evaluating the likely effectiveness of an…

Q: Identify the most important reasons for performing analytical procedures. b) Describe the broad…

A: Analytical procedure is the procedure which is carried out by the auditors at the preliminary stage…

Q: Audit planning is a vital area of the audit primarily conducted at the beginning of audit process to…

A: Audit engagement is defined as the arrangement formed between auditor and the client in order to…

Q: Substantive analytical procedures are performed by auditor: To identify and assess detection risk To…

A: Auditor is the person who is responsible for performing audit work. Audit means checking and…

Q: The documentation of the audit strategy is a record of the planned nature, timing and extent of risk…

A: The answer for the True or false question and relevant explanation are presented hereunder : What is…

Q: Differentiate between tests of controls and substantive testing and the relationship between the two…

Q: For auditors, the term materiality is important, both at the planning stage of the audit and at the…

A: Materiality is a concept in accounting refers to that all the material facts / items should be…

Q: An audit plan is : a. The blueprint for conducting the audit and accomplishing the audit objectives.…

A: An audit plan is "The blueprint for conducting the audit and accomplishing the audit objectives."

Q: The general standards in the generally accepted auditing standards include all of the following…

A: Audit in general term to check whether the financial health of the company is shown correct or not.…

Q: clarify the relationship between audit risk and materiality determining the right degree of audit…

A: Auditing is defined as the systematic study of financial information and verification of the…

Q: After the financial statements are issued, auditors finish the substantive procedures. Identify the…

A: Introduction: Substantive processes must be carried out after the date of financial statements.

Q: Planning phase enables the auditor to obtain all the relevant background information to gain an…

A: The planning phase is the first phase of the audit process. It is the phase in which the objectives…

Q: (A) The requirement is to find the best statement concerning an auditor’s assessment of…

A: Control risk alludes to the probability that a large misrepresentation originating from a caused by…

Q: What is (are) the purpose(s) of audit documentation? Group of answer choices Provide a…

A: Solution: The purpose(s) of audit documentation is: 1. Provide a reasonable assurance that the…

Q: Determine the assessed levels of detection risk and inherent risk

A: Audit is defined as an investigation of some statements of figure involving examination of certain…

Q: auditor obtains sufficient understanding of the internal control structure

A: Auditing is done to verify whether the underlying financial statements show true and fair view of…

Q: When auditing the accounts payable balance on the balance sheet, an auditor’s procedures most likely…

A: Auditing is the inspection of the financial records of the company or organisations with no bias and…

Q: If recommendations are made to the audit report noted problems and weaknesses, written responses…

A: When recommendations are made to the audit report noted problems and weaknesses, written responses…

Q: What are the purposes of preliminary analytical procedures and how does it differ from the…

A: Lets understand the basics. Auditor is responsible for making a correct opinion regarding the…

Q: Audit documentation is the written record of the basis for the auditor's conclusions that provides…

A: Audit:- An audit is referred as the physical examination of books of accounts of particular company…

Q: For each of the procedures described in the table below, identify the audit procedure performed and…

A: Procedure Audit Procedure Audit Procedure Classification a. Requested responses directly from…

Q: Auditing standards indicate that if the preliminary control risk assessment is low, the auditor then…

A: The selection of control by the auditor is based on assessing whether the entity's controls…

Q: Analytical procedures can be used in which of the following ways?a. As a means of overall review…

Q: Audit testing relates to the completeness and occurrence assertions. Discuss the testing activities…

A: Audit testing relates to the completeness and occurrence assertions where as vouching is used for…

Q: What are the types of audit procedures used during substantive testing, briefly explain them.

A: Substantive testing is indeed an auditing method that looks for mistakes in financial statements and…

Q: "The objective of the auditor is to design and perform audit procedures in such a way as to enable…

A: Bartleby's Guideline: “Since you have posted a question with multiple sub-parts, we will solve first…

Q: The auditor’s risk assessment procedures identified severalrisks that the auditor deems to be…

A: Due to the financial misstatement, there is a possibility that an auditor gives an unqualified…

Q: An audit program is usually prepared after establishing the audit strategy and developing the audit…

A: An audit program refers to the audit plan which is the plan that is documented with the procedures…

Q: Which of the following audit is a continuous process ? Risk Management Internal Audit Balance Sheet…

A: Audit definition - The audit is an independent examination of financial information of an entity…

Q: Audit procedures are the processes, techniques, and methods that auditors perform to obtain audit…

A: Audit procedures are the processes, techniques and methods that auditors perform to obtain audit…

Q: The following are procedures to obtain audit evidence except: a. Physical examination. b.…

A: Audit is the process of checking and examining books of accounts and financial information in order…

Q: When a substantive audit strategy is adopted, an auditor will O determine internal controls are…

A: The question is related to Auditing and is of Substantive audit Strategy. Substantive audit Strategy…

Q: The audit program is a list of procedures used to gather sufficient and appropriate audit evidence.…

A: Audit program:- It is detailed plan of auditing work. It specify list of procedures used to gather…

Q: Direction: summarize each step of the risk-based audit process. Testing of Controls Performing…

A: Risk-based auditing is a type of auditing that emphasizes risk analysis and management. The…

Q: Although the quantity, type, and content of audit documentation will vary with thecircumstances,…

A: Audit can be referred to as the procedure by which an auditor assesses the reliability of the…

Q: Which of the following is ordinarily performed last in the audit examination?a. Securing a signed…

A: Definition: Audit examination: Audit examination is an organized and independent work to examine…

Q: Discuss the objective of analytical procedures used in the overall review stage of the audit.

A: Analytical procedures are one of the two types of substantive audit procedures. They evaluate the…

Q: auditor is able to rely on previous audits' assessments

A: In some cases, auditor may have to place reliance on the work done by the previous auditor or other…

Q: Audit planning is conducted at the beginning of the audit process to establish the overall audit…

A: The steps in audit planning are: Step 1. Planning by an auditor The auditor will review prior audits…

Concept explainers

Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.

Question

Analytical procedures are required as a part of the:

		Internal control assessment.
		Detailed tests of balances.
		Procedures performed near the end of the audit.
		Substantive testing.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1 Introduction

VIEW

Step 2 Conclusion

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Audit procedures for items of Financial Statement

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

During which part of an audit is the preparation of flowcharts most appropriate? a. When performing tests of controls. b. When performing substantive tests. c. When performing preliminary analytical procedures. d. When documenting the auditor’s understanding of internal control.
During an audit, the internal auditor should consider the following factor(s) in determining the extent to which analytical procedures should be used: a. Adequacy of the system of internal control. b. Significance of the area being examined. c. Precision with which the results of analytical audit procedures can be predicted. d. All of the above.
Which of the following is the major purpose of performing analytical procedures in internal audits? a. To perform additional audit procedures. b. To plan the audit engagement. c. To obtain audit evidence. d. To study relationships among elements of information.
After the financial statements are issued, auditors finish the substantive procedures. Identify the most frequently performed auditing tasks.
Audit planning is conducted at the beginning of the audit process to establish the overall audit strategy and detail the specific procedures to be carried out to implement the strategy and complete the audit. Briefly explain the steps in audit planning.
explain .After documenting internal control in an audit engagement, the auditor may perform tests on Those controls that the auditor plans to rely on. Those controls in which deficiencies were identified. Those controls that have a material effect on the financial statement balances. A random sample of the controls that were reviewed.
To test the operating effectiveness of a control, an audit team might use a combination ofeach of the following tests except fora. Inquiry of client personnel.b. Observation of company operations.c. Confirmation of balances.d. Inspection of documentation
The execution stage of an audit involves: evaluating the results of the detailed testing and forming an opinion on the truth and fairness of the client's financial report the assessment of the audit firm's quality control procedures the performance of detailed tests of controls and substantive testing of transactions and accounts gaining an understanding of the client
Which of the following BEST describes the purpose of the audit planning phase? a) To determine the timing of the audit work. b) To communicate the results of the audit. c) To document the scope, objective(s), preliminary risk assessment and plan for the audit. d) To document the plan for substantive audit requirements.