relationship between substantive tests of transactions and substantive tests of balances

Q: What are the auditor's responsibilities for 'going concern assumptions’'?

A: The going concern is an accounting assumption where it is assumed that the business will be carried…

Q: When there is agreement between a measure or description and the phenomenon it purports to…

A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…

Q: When can a check be a negotiable instrument

A: In finance in general and in the world of banking, trade and commerce in particular checks and…

Q: Distinguish among tests of details of balances, tests of controls,and substantive tests of…

A: Substantive Testing: It is an audit procedure that helps examine the supporting documents and…

Q: In the audit of accounts receivable, the most important emphasis should be on thea. Completeness…

A: The existence assertion is the assertion that liabilities, assets and shareholders capital balances…

Q: If there is a Standard or Interpretation that specifically applies to a transaction, it overrides…

A: The answer for the True or false question on the applicability of Conceptual framework is discussed…

Q: Discuss how the key differences between balance sheet accounts and income statement accounts affect…

A: Balance sheet accounts are ‘permanent’ and their balance is carried forward from one period to the…

Q: State the relationship between the confirmation of accountsreceivable and the results of the tests…

A: Auditor performs these two test understand the efficiency of control systems, policies and…

Q: A principle that is concerned with information that should be significant enough to affect…

A: Accounting Principles: These are the methods, guidelines, and rules that shall be followed by the…

Q: Explain the difference between substantive and procedural due process.

A: Definition: Managerial accounting: Managerial accounting is the process of identifying, measuring,…

Q: ne

A: Negotiable Instruments are written contracts whose benefit could be passed on from its original…

Q: What is the primary purpose of analyzing interest expense? Giventhis purpose, what primary…

A: Interest: Interest is the amount of interest paid on the issue price of the notes by the issuer at…

Q: Discuss the purposes of (1) substantive tests of transactions, (2) tests of controls, and (3) tests…

A:

Q: Define receivables and explain issues related to their recognition.

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: Distinguish between a fictitious transaction and an artificial transaction?

A: The difference between fictitious transaction and an artificial transaction is based on the…

Q: Demonstrate the appropriate accounting treatment for contingencies, includingunasserted claims and…

A: Contingencies refer to a situation that occurs in the accounting period for which the outcome is not…

Q: Define receivables and understand issues related to their recognition.

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: What is the purpose of dual dating the auditor’s report?

A:

Q: Describe what analytical procedures and tests of details of balances are and give an example of each

A: Analytical procedures: These are auditing procedures that help in analyzing the relationship between…

Q: What makes an account significant or an assertion relevant?

A: Significant Account  An account is said to be significant when there is a chance that the account…

Q: Explain how management assertions, general balance-relatedaudit objectives, and specific…

A: Management assertions are implied representations by management about classes, of transactions and…

Q: Define and contrast financial statement auditing, attestation, and assurance services.

A: financial statement auditing means independent inspection and examination of financial statements of…

Q: Which type of revenue activity is correctly matched with the revenue recognition method?

A: The question is related with the revenue activity is correctly matched with the revenue recognition…

Q: Explain and distinguish the difference between a transaction, an event and an arrangement.

A: The accounting equation is expressed in the form al an equation, that is, an asset must be equal to…

Q: What are the characteristics of a confirmation? Distinguish betweena confirmation and external…

A: Auditing: The process of critical examination and evaluation of the accounting information recorded…

Q: Why is it desirable to design tests of details of balances beforeperforming tests of controls and…

A: It is desirable to design tests of details of balances before performing tests of controls and…

Q: Ethics of accruals and deferrals.

A: Lets understand the meaning of accrual and deferrals. Accrual is a recording income and expense in…

Q: What are the requirements for an instrument to be negotiable?

A: Introduction: The following are the formal requirements that an instrument must meet to be…

Q: In your words, what is the legal responsibility of the auditor?

A: Auditors are the authorized individual to examine the financials or accounts of the companies and…

Q: Distinguish between substantive tests of transactions and tests ofdetails of balances. Give one…

A: Distinguish between substantive tests of transactions and tests of details of balances.

Q: Understand the fundamental concepts related to revenue recognition and measurement.

A: Revenue Recognition: Revenue recognition is a Generally accepted accounting principle that tells…

Q: Explain why the analysis of legal expense is an essential part ofevery audit.

A: Audit can be defined as the analysis and evaluation process conducted by the auditor who is…

Q: Explain the importance of analytical procedures as evidence indetermining the fair presentation of…

A:

Q: What are the auditor's responsibilities for 'going concern assumptions’'?

A: Going concern assumption is one of the concept of accounting, under which it is assumed that the…

Q: To achieve faithful representation, the financial information must be: relevant, comparable, and…

A: Lets understand the meaning of faithful representation in short. It is a representation which should…

Q: Distinguish between a test of control and a substantive test of transactions. Give two examples of…

A: SOLUTION- Test of controls: auditors assess control risk based on understanding of internal control…

Q: What does the FASB do in order to assess possible benefits and costs of a proposed revision of an…

A: Financial accounting standards board (FASB): This is the organization which creates, develops, and…

Q: What transaction is covered by Maceda Law?

A: MACEDA LAW is also known as REALTY INSTALLMENT BUYER ACT, was approved in 26th August 1972 to…

Q: Which of the following is not an assertion relating to classes of transactions? Accuracy, Adequacy,…

A: Classes of transaction includes the transactions of the company which are grouped together for…

Q: Answer of the following question related to these characteristics and constraints. When there is…

A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…

Q: What is typically included in testing for the balance sheet? A. All of these are typically included…

A: In order to check the balance sheet items  Rights and obligations One should check weather the asset…