Explain the process of auditing the following transactions/accounts for a Mining. • Accounts Receivable • Contract guarantees and cancellation or postponement provisions. • Contract costs • Income recognition

Explain the process of auditing the following transactions/accounts for a Mining. • Accounts Receivable • Contract guarantees and cancellation or postponement provisions. • Contract costs • Income recognition

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

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

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

Chapter13: Auditing Debt, Equity, And Long-term Liabilities Requiring Management Estimates

Section: Chapter Questions

Problem 36CYBK

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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

Explain the process of auditing the following transactions/accounts for a Mining.

• Accounts Receivable
• Contract guarantees and cancellation or postponement provisions.
• Contract costs
• Income recognitionb.

Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.

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Audit procedures for items of Financial Statement

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