when the auditor Watch employees count inventory to determine whether company procedures are being followed. What type of evidence he or she is obtaining : Select one: a. observation b. inspection

Q: Which of the following test controls most likely would help assure an auditor that goods shipped are…

A: In order to test the effectiveness of the control so as to detect the material misstatement, an…

Q: Explain whether or not analytical review procedures would be sufficient for the audit of the…

A: Auditing is the examination and verification of the financial statements prepared by the entity and…

Q: Which of the following audit procedures is the best test of the accuracy, valuation and allocation…

A: An inventory audit is an audit where an auditor cross-checks the inventory records with the…

Q: The auditor is verifying whether all goods received by the company have been recorded appropriately.…

A: Auditor is one who audits the financial statement of company so as to provide fair view on the…

Q: he auditor of Kent Ltd selects a sample from the file of shipping documents in order to confirm that…

A: An audit report is provided by an independent auditor that contains the opinion of the auditor on…

Q: Which of the following is an analytical procedure? a. Analysis of significant ratios and trends b.…

A: Analytical  procedures are performed to evaluate the financial information.

Q: When an audit team selects a sample of shipping documents from the company's shipping logs and…

A: When an audit team selects a sample of shipping documents from the company's shipping logs and…

Q: Your audit client is under intense pressure to meet an earnings target. Which transaction assertion…

A: Assertions are the procedural claims that determine whether the financial statements are fairly…

Q: Audit tests include tests of controls and substantive procedures. Substantive procedures can be…

A: Step1   Sufficiency depicts the quantity of audit evidence and Appropriateness is depicts the…

Q: When an audit team traces a sample of shipping documents to the related sales invoice copies, they…

A: Accounts Receivables: Accounts receivables are those accounts that occur due to incomes for which…

Q: a) Audit tests include tests of controls and substantive procedures. Substantive procedures can be…

A: Substantive Audit tests are performed to test the materiality of the elements. These tests are…

Q: Payable ICQ Items: Assertions, Tests of Controls, and Possible Errors or Frauds. Following is a…

A: Management Assertion: Management assertion refers to the claim made by the management assuring about…

Q: If you are an auditor and assigned to audit inventory. So as an auditor 1. How do you ensure that…

A: Honor Code: Since you have posted a question with multiple sub-parts, we will solve the first 3…

Q: Auditing an attestation client's inventory accounts can vary widely in complexity and time required…

A: Inventory accounts are audited to report on the true and fair state of inventory balances on a…

Q: An audit trail enables a person to trace a source document to its ultimate effect on the financial…

A: Audit trails are manual or electronic records that are chronologically defined events to provide…

Q: Assume that your audit partner asks you to design detailed substantive testing programs for accounts…

A: Considerable testing is a review technique that looks at the fiscal reports and supporting…

Q: An auditor is examining a nonpublic company’s inventory procurement system and has decided to…

A: Auditing is a gathering of information and evaluation of evidence as to report on the degree of…

Q: State one test of control and one substantive test of transactions that the auditor can use to…

A: Test of Control: It means testing and analyzing the control used and set by an entity to check the…

Q: For each of the audit procedures listed below state the primary ‘Assertion’ and the related…

A: Audit Assertion Financial statement account 1 Review and test the procedures for identifying…

Q: Questions - Images to these questions are attached below. (a) Recommend SIX tests of controls the…

A: (a) Test of control Objective of the test The auditor should attempt to verify the validity of…

Q: Before expressing an opinion concerning the audit of income and expenses, theauditor will best…

A: Auditing:   Auditing refers to an independent examination of financial information of any…

Q: ou have just been engaged as the auditor for Asempa Company Ltd. During your first audit as the…

A: Internal control :           To prevent fraud and misrepresentation of financial statements, the…

Q: You are testing inventory.  You determined that inventory exists, nothing is missing from inventory,…

A: The following are some examples of inventory risks: Due to the difficulty of valuing inventory, it…

Q: Explain the significant inherent risks associated with inventory. Explain the process of physical…

A: Internal controls mean to control the internal activities of the company. the internal control is…

Q: An auditor verify entries in the An example of acquisitions journal by examining supporting vendors…

A: Vouching is nothing but verification of journal entries in the books of account by examining the…

Q: 1. When auditing a manufacturing concern, what major inquiries might be made by the auditor about…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: When performing tests of controls over cash sales, an auditor would use observation to test whether…

A: When performing tests of controls over cash sales, an auditor would use observation to test whether…

Q: To gather audit evidence about the proper credit approval of sales (i.e., valuation assertion), the…

A: Audit is the detailed process of checking and verifying books of accounts and financial information…

Q: Audit tests include tests of controls and substantive procedures. Substantive procedures can be…

A: Substantive Audit tests are performed to test the materiality of the elements. These tests are…

Q: For each of the following audit procedures, state which type of evidence-gathering technique is…

A: The question is related to the Auditing. Itbis related with the technique used to gathering…

Q: goal of this substantive audit procedure

A: Option b is wrong because for determining the proper recording of purchases, there is no need to…

Q: When evaluating inventory controls, an auditor would be least likely toa. Inspect documents.b. Make…

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

Q: document that the auditor would test would mostly likely be the? A. Supplier Invoice B. Purchase…

A: To  verify whether all goods received by the company have been recorded appropriately, the source…

Q: STATEMENT 1: The broad categories of assertions are the basis of the auditor in develaping specific…

A: Management Assertion: It is the  claims made by members of management  and is used in regard to the…

Q: obtain evidence

A: Correct answer :- True.

Q: Indicate a specific audit procedure under each of the following categories, as applied particularly…

A: Audit:   It is a procedure for examining a company's financial statements. The goal of auditing is…

Q: Which of the following audit procedures is a test of control?

A: The audit is the process of the official inspection of the books of accounts of a company. There are…

Q: The following questions concern types of audit tests.Choose the best response.a. The auditor looks…

A: Answer:   Option 2.

Q: Assuming that the auditor properly documents receiving reportnumbers as a part of the physical…

A: Cut off procedures are those procedures in which the departments in the business would have their…

Q: How does inventory control deficiencies affect the development of audit procedures for inventories

A: Answer: The audit procedures are to be designed such that the total audit evidences can be…

Q: As the auditor of Sample Limited you note the following matters relating to the internal control of…

A: Internal control is a system of organizing the company in which a set of rules, policies, and…

Q: What procedures must the auditor perform when gathering evidence related to contingencies? (Several…

A: Audit evidence: Audit evidence refers to the information and explanations used by the auditor in…

Q: Why is it important for auditors to obtain control information over inventory count sheets or…

A: Auditing inventory is the process of cross-checking financial records with physical inventory and…

Q: (Substantive tests and audit evidence) In meeting the third standard of field work, the auditor may…

A: Auditors employ the test of details to verify the specifics of particular transactions or balances.…

Q: Refer to Exhibit 6.5 to identify the nine types of audit procedures used as part of the audit…

A: PLEASE LIKE THE ANSWER, YOUR RESPONSE MATTERS    Procedure Type of procedure Assertion Tested…

Q: internal control of its sales

A: Internal control system is a set of rules and activities to be adhered during the conduct of…

Q: Auditors gather several different types of evidence during the audit including physical evidence;…

A: The audit is the examination of the financial recording of the company. The auditor is the person…

Q: A typical substantive procedure for inventory balance and purchase transactions may include…

A: Should disclose separately in Financial statements and notes to accounts

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.