Question 2You are the in-charge auditor for the Nelson Company engagem ent for the year endingDecember 31, 2020. Nelson is a wholesale supplier of building materials and markets itsproducts to several major retail chains. After evatuating the company'sinternal-controis, youdecide that the prescribedcontrolsare notadequate, andassesscontrol riskut the maximumlevel. Accordingly, you will rety entirety on substantivetests toverify the accounts receivable-аnd reveнue baiances.Required: Prepare an audit program that details the specific substantivetests you would applyto Nelson's accounts receivable and revenue for the December 31, 2020 audit engagement.

Auditing means that the facts and figure of financial statements are true and correct or wrong as…

You are the in-charge auditor for the Nelson Company engagement for the year ending December 31, 2020. Nelson is a wholesale supplier of building materials and markets its: products to several majorretail chains. After evaluating the company's internal controis, you decide that the prescribedcontroisare not adequate, andassess controlriskat the maximum: tevel. Accordingy, you will rely entirety on substantiveteststoverify the accounts receivable- andrevenue balances. Required: Prepare an audit program that detailsthe specific substantive tests you would apply to Nelson's accounts receivable and revenue for the December 31, 2020 audit engagement.

You are the in-charge auditor for the Nelson Company engagement for the year ending December 31, 2020. Nelson is a wholesale supplier of building materials and markets its: products to several majorretail chains. After evaluating the company's internal controis, you decide that the prescribedcontroisare not adequate, andassess controlriskat the maximum: tevel. Accordingy, you will rely entirety on substantiveteststoverify the accounts receivable- andrevenue balances. Required: Prepare an audit program that detailsthe specific substantive tests you would apply to Nelson's accounts receivable and revenue for the December 31, 2020 audit engagement.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter1: Accounting And The Financial Statements

Section: Chapter Questions

Problem 46E: OBJECTIVE 6 Exercise 1-46 Income Statement ERS Inc. maintains and repairs office equipment. ERS had...

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