AUDITING+ASSURANCE 12MONTH ACCESS CARD
17th Edition
ISBN: 9780135635131
Author: ARENS
Publisher: WILEY
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Question
Chapter 13, Problem 15RQ
To determine
Explain the reason for designing the tests of details of balances before performing tests of controls and substantive tests of transactions. Give assumptions that the auditor must and what steps auditor perform if assumption went wrong.
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Students have asked these similar questions
Why should receiving reports be prenumbered in the first place? With the help of the receiving reports, what assertions would an auditor test, and how would the auditor go about doing so?
Are internal controls required even if an auditor doesn't plan to rely on them in his audit? Explain.
Generally, which of the following audit procedures is the least expensive to perform?
A.
Analytical procedures
B.
Tests of details of balance
C.
Substantive tests of transactions
D.
Tests of controls
E.
Risk assessment procedure
Chapter 13 Solutions
AUDITING+ASSURANCE 12MONTH ACCESS CARD
Ch. 13 - Prob. 1RQCh. 13 - Prob. 2RQCh. 13 - Prob. 3RQCh. 13 - Prob. 4RQCh. 13 - Prob. 5RQCh. 13 - Prob. 6RQCh. 13 - Explain how the calculation and comparison to...Ch. 13 - Prob. 8RQCh. 13 - Prob. 9RQCh. 13 - For each of the eight types of evidence discussed...
Ch. 13 - Prob. 11RQCh. 13 - Prob. 12RQCh. 13 - Prob. 13RQCh. 13 - Prob. 14RQCh. 13 - Prob. 15RQCh. 13 - Prob. 16RQCh. 13 - Prob. 17RQCh. 13 - Prob. 18RQCh. 13 - Prob. 19RQCh. 13 - Prob. 20RQCh. 13 - Prob. 21.1MCQCh. 13 - Prob. 21.2MCQCh. 13 - A conceptually logical approach to the auditors...Ch. 13 - Prob. 22.1MCQCh. 13 - Prob. 22.2MCQCh. 13 - Prob. 22.3MCQCh. 13 - Prob. 23.1MCQCh. 13 - b. Substantive analytical procedures are most...Ch. 13 - Prob. 23.3MCQCh. 13 - Prob. 24DQPCh. 13 - Prob. 25DQPCh. 13 - Prob. 26DQPCh. 13 - Prob. 27DQPCh. 13 - Prob. 28DQPCh. 13 - Prob. 29DQPCh. 13 - Prob. 30DQPCh. 13 - Prob. 31DQPCh. 13 - Prob. 32DQPCh. 13 - Prob. 33DQPCh. 13 - Prob. 34DQPCh. 13 - Prob. 35DQP
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Similar questions
- Why is it desirable to design tests of details of balances beforeperforming tests of controls and substantive tests of transactions? State the assumptionsthat the auditor must make in doing so. What does the auditor do if the assumptions arewrong?arrow_forwardGenerally, which of the following audit procedures is the least expensive to perform? A. Analytical procedures B. Tests of details of balance C. Substantive tests of transactions D. Tests of controls E. Risk assessment proceduresarrow_forwardWhen would an auditor prefer to conduct a black-box audit? What about a white-box audit?arrow_forward
- Is it necessary for an auditor to get a knowledge of a client's internal controls if the auditor does not plan to depend on the client's internal controls in the course of the audit? Explain.arrow_forwardWhich one below is not an example of auditors'substantive testing? Select one: a. Controls testing. b. Tests of transactions. c. Tests of balances. d. Substantive analytical procedures.arrow_forwardWhat is the upper limit on misstatements? What information does it provide the auditor?arrow_forward
- How do Analytical Procedures assist the auditor?arrow_forwardConsider the concepts of sufficient and appropriate audit evidence. Assess how audit risk relates to audit evidence. How do auditors audit accounting estimates and other subjective information? What are analytical procedures, and why are they a useful audit tool? Explain the importance of audit documentation.arrow_forwardDefine and give examples of off-balance-sheet information. Why should auditors be concerned with such items?arrow_forward
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