What is the difference between Test of controls and Substantive procedures, give an example of each types of test?

Q: Distinguish between tests of controls and substantive testing.

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Q: n audit procedure designed to evaluate the operating effectiveness of controls in preventing or…

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Q: What is the difference of Internal Audit from External Audit?

A: Lets start with the basics. Audit is a examination of the books of account of the organization.…

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

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Q: Controls are only as good as the predetermined standard on which they are based. Discuss the…

A: Predetermined standard are the estimate or budgets that are made in the beginning of the period.…

Q: What is directional testing? How does directional testing relateto the appropriateness of audit…

A: Auditing means the process in which the books of the company are audited by a person. The person…

Q: What is the audit team’s objective in obtaining an overall understanding of internal control in…

A: Auditing: The analytical process of evaluating and assessing the accounting information furnished…

Q: how does communication aid in assessing inherent risk, control risk and detection risk

A: Factors of Communication aid in Assessing Inherent Risk, Control Risk and detection Risk There are…

Q: Determine the similarities and differences between the detective and preventive internal controls…

A: Every company requires an effective internal control system to achieve its organizational goals.…

Q: How do you determine if Control Procedures are operating properly or not operating properly?

A: Controls are the procedures set up by the organization to ensure that the financial and operational…

Q: What is the primary constraint on audit evidence?

A: Audit evidence is primarily, the data and accounts of the client and its associated third parties,…

Q: Describe the difference between preventive controls and detective controls. What are examples of…

A: Control activities:   Control activities are more concerned about the protection of the resources…

Q: procedures is a test of control or a substantive test.

A: Test of controls and substantive tests are two types of audit procedures conducted by auditors. Test…

Q: How must an auditor document understanding of Internal Control?

A: Definition:   Internal control: Internal control is a process which ensures continuous reliability…

Q: What are the components of audit risk and how do these relate to each other?

A: Audit risk refers to the possibility that financial statements are significantly incorrect, even if…

Q: How can you explain the difference and connection of the Test of Controls and Substantive Testing

A: Both are further audit procedures

Q: tests of controls which are by their nature also detailed tests of balance

A: Test of controls is a part of auditing. It is usually conducted at the beginning of the audit.

Q: Which of the following risks does the auditor least control? a. inherent risk b. control risk c.…

A: Definition: Auditing: Auditing is a process wherein the auditor investigates the financial…

Q: the procedures used to test the effectiveness of controls in support of a reduced assessed control…

A: Auditors generally test operating effectiveness of controls selected for testing by analysing that…

Q: Define control risk and detection risk. What is the difference between control risk and detection…

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

Q: Distinguish between client-imposed scope limitations and circumstance-imposed scope limitations.…

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

Q: How does control risk affect the nature, timing, and extent of further audit procedures?

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Q: performing test of controls,

A: Option a is wrong because the relationship between the assessed level of control risk and…

Q: What does an auditor's assessment of Detection Risk determine?

A: Detection risk is a component of audit risk. Detection risk is the possibility that a material…

Q: what are the difference between Preventive Controls and Detective Controls?

A: Financial Reporting control activities are imposed on the accounting standard for the purpose of…

Q: Controls are only as good as the predetermined standard on which they are based. Discuss the comment…

A: Predetermined standard are the estimate or budgets that are made in the beginning of the period.…

Q: What are the differences between an external audit and an internal audit?

A: Internal audit is performed within organization by the auditor appointed by management.

Q: Which of the following is a correct? Select one: a. Planned detection risk and inherent risk have an…

A: The audit risk refers to the risk that can not be detected by the auditor of the financial…

Q: There is no need to perform substantive tests procedures if the control risk is determined to be…

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

Q: What is lapping?  How can it be detected by an auditor and how can it be prevented?

A: Lapping is an accounting fraud where cash stolen or cash misappropriation is concealed by altering…

Q: Which of the following is NOT a common type of white box test of controls?a. completeness testsb.…

A: Inference tests is NOT a common type of white box test of controls so the correct option in the…

Q: Describe how the nature of evidence used to evaluate the controlenvironment differs from the nature…

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Q: How are the sufficiency and appropriateness of evidence related to detection risk?

A: Audit Evidence:   The pieces of evidence provided by the audit team to prove their opinion with…

Q: What is meant by the control environment? What are the factorsthe auditor must evaluate to…

A: Control environment is an internal control environment . It ensures the overall attitude, awareness…

Q: Explain the purpose of substantive testing and give examples of the main types of substantive tests.

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

Q: What are the similarities and differences between internal auditing and external auditing?

A: Audits are performed to ensure that something is correct, such as whether a person is paying their…

Q: What is the relationship between Evidence and Detection Risk?

A: Detection risk is the risk that an auditor will not find a material misstatement in a client's…

Q: What are two potential tests that can be conductedto verify the CAPM? What are the results of…

A: The Capital Asset Pricing Model (CAPM) illustrates the connection between systematic risk and…

Q: What is the difference between document examination and reperformance when conducting tests of…

A: Test of controls are performed to obtain evidence about whether controls that are candidates to be…

Q: Which of the following service auditor reports provide evidence about the operating effectiveness of…

A: What are Service Organisation Controls(SOC) reports? A service organization controls (SOC) report is…