Explain why the analysis of differences is important in the confirmation of accounts receivable, even if the misstatements in the sample are not material.

Q: Which analytical procedures are most important in verifyingnotes payable? Which types of…

A: Definition: Liabilities: The claims creditors have over assets or resources of a company are…

Q: Accounting analyse the impact the discovery of control deficiencies will have on the approach to…

A: Sampling is the process of picking a specific number of observations from a larger population in…

Q: Comment on the extent to which results from a negative confirmation may be relied upon to verify the…

A: Ans. Positive confirmation is an auditing enquiry that requires the customer to confirm the accuracy…

Q: Discuss the differences between a first-party, second-party, and third-party audit.

A: The first-party audit is also known as internal audits. This is performed by internal audit…

Q: • The Choose the answer from the menu in accordance to the question statement _--- method includes…

A: There are many two types of sampling approaches used when auditing the financial statement of the…

Q: Which one of the sentences below is FALSE? A. The risk of incorrect acceptance called beta risk has…

A: Auditing means the independent checking of company operation by outsider. Auditor is  qualified and…

Q: the susceptibility of an account balance or class of transactions to misstatements that could be…

A: Internal controls: Internal controls are maintained to decline the possibility of fraud. They ensure…

Q: Which analytical approaches are the most critical for note payable verification? Which sorts of…

A: Procedure for auditing: Audit procedures are the processes, strategies, and methods used by auditors…

Q: How do bank confirmations differ from positive confirmations ofaccounts receivable? Distinguish…

A: Auditing:   In auditing, auditors verify the correctness and fair presentation of financial…

Q: Discuss audit sampling for tests of details of balances and for tests of controls and substantive…

A: Audit sampling is the procedure applied to less than hundred percentage of the transactions under…

Q: The SEC notes, with respect to materiality, that Group of answer choices Professional judgment…

A: The auditor is responsible for forming an opinion on the financial statement audited. The auditor…

Q: then, discuss the statement content, stating examples of substantive analytical procedures which…

A:

Q: ome account balances such as those for pensions and leases are the result of complex calculations.…

A: Answer: The correct answer is (3) inherent risk.

Q: Which of the following steps involved with determining the upper limit on misstatements is…

A: Determine the audited value of the item and compare it to the recorded balance is step involved with…

Q: Which of the following factors used to determine sample size is normally based on the extentto which…

A: Sampling: Sampling allows an individual obtain the information about the population of interest in…

Q: If the _______ is less than the _______, the audit team would conclude that the account balance is…

A: Misstatement: It can be defined as the variations between the actual financial statements being…

Q: What is tolerable misstatement? How do auditors use it when deciding whether account balancesare…

A: A Tolerable misstatement is the financial statement item amount that differs from the correct amount…

Q: The risk that audit evidence for a segment will fail to detect misstatements exceeding tolerable…

A: Audit evidence refers to all sorts of information, or bunch of documents or any sort of data…

Q: Which of the following is an advantage of nonstatistical sampling?a. It measures the audit team’s…

A: Non-statistical sampling: It refers to the method of sampling where the selection of the sample is…

Q: Explain why you agree or disagree with the following statement:“In most audits, it is more important…

A: I agree with the given statement as in most audits, it is much important to test carefully the…

Q: What are the advantages and disadvantages of an adverse audit

A: Adverse audit refers that the opinion has been provided on the financial statements that: The…

Q: To allocate the preliminary estimate of materiality to the accounts, the auditor might consider A.…

A: in order to plan the nature timining and extent of the audit procedure that is needed to perform the…

Q: Describe to what extent statistical sampling enhances the quality of the audit evidence.

A: Audit evidence is the evidence collected by an auditor during an audit which will form part of his…

Q: Which of the following statements is associated with analytical procedure test? a. It helps to…

A: Analytical procedures involve comparisons of recorded amounts, or ratios developed from recorded…

Q: Tolerable error, is the maximum monetary error that the auditor is prepared to accept in the…

A: Materiality is an concept in audit where it plays an key role during the audit process in…

Q: Explain how the auditor determines tolerable misstatement for MUS

A: Monetary unit sampling (MUS) is a quantitative sampling process which is often referred to as dollar…

Q: Which of the following is not an advantage of non-statistical sampling? a) It allows an auditor to…

A: It requires less staff training is not a advantage of non statistical sampling.... In this sampling…

Q: What options are available to the audit team if the ULRD is greater than the tolerable rate of…

A:

Q: The risks of incorrect acceptance in variables sampling and of overreliance in attributessampling…

A: Attributes sampling is a technique used to control the extent of particular attributes that exist…

Q: When auditing estimates, auditors will propose adjusting entries for differences in judgment.…

A: Adjusting entries are the entries made at the end of the period to adjust the prepayments and the…

Q: If the total of the schedule of accounts payable does not agree with the Accounts Payable balance,…

A:

Q: When evaluating the results of an MUS application, the audit team should compare the upper limit on…

A: Answer:   Option d

Q: In evaluating the results of audit sampling in test of details which sentence below is FALSE? A.…

A: Auditing means to check whether the results are as per assumptions or calculations made at the…

Q: Which of the following components is not used in determining the upper limit on misstatements?a.…

A: Auditors generally uses Sampling Tools to find any error.

Q: Which of the following statements is not true with respect to the calculation of the upperlimit on…

A: Here the reference is from ISA - 530 "Audit sampling"

Q: e misstatements found in the sample to the population when using statistical sampling, but not when…

A: In statistical analysis, sampling is  act of selecting a specific number of observations from larger…