Auditing And Assurance Services
17th Edition
ISBN: 9780134897431
Author: ARENS, Alvin A.
Publisher: PEARSON
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Question
Chapter 13, Problem 20RQ
To determine
Explain the reason for auditors often considering it desirable to perform audit tests throughout the year rather than wait until year end and examples of evidence that can be accumulated before year end.
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Students have asked these similar questions
Which of the following procedures would an auditor most likely perform to obtain evidence about the occurrence of subsequent events?
A. confirming a sample of material accounts receiveable established after year-end.
B. Comparing the financial statements being reported on with those of the prior period.
C. Investigating personnel changes in the accounting department occurring after year-end.
D. Inquiring as to whether any unusual adjustments were made after year-end.
The practice of auditing firms to spread work throughout the year by carrying out as many auditing procedures as practicable before the balance sheet date, in order to minimize the load during the peak period. This is called
a. Test of recorded transactions b. Confirmation of receivable and payablesc. Observation and test-check of inventoriesd. Interim work
asap F
Identify the primary audit objectives that auditors hope to accomplish by confirming a client's year-end accounts receivable. Explain the difference between "positive" and "negative" confirmation requests and discuss the quality of audit evidence yielded by each.
Chapter 13 Solutions
Auditing And Assurance Services
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
- In connection with the planning phase of an audit engagement, which of the following statements is always correct? a. Final staffing decisions must be made prior to completion of the planning stage b. Observation of inventory count should be performed at year-end c. A portion of the audit of a continuing audit client can be performed at interim dates d. An engagement should not be accepted after the client’s financial year-endarrow_forwardasap Identify the primary audit objectives that auditors hope to accomplish by confirming a client's year-end accounts receivable. Explain the difference between "positive" and "negative" confirmation requests and discuss the quality of audit evidence yielded by each.arrow_forwardWhich of the following conditions most likely would pose the greatest risk in accepting a new audit engagement?a. Staff will need to be rescheduled to cover this new client.b. There will be a client-imposed scope limitation.c. The firm will have to hire a specialist in one audit area.d. The client’s financial reporting system has been in place for 10 years.arrow_forward
- Which of the following statements is always true when an auditor is planning a year-end audit? 2 points Multiple Choice eBook References An engagement should not be accepted after the fiscal year-end. An inventory count must be observed at the balance sheet date. The client's audit committee should not be told of any specific audit procedures which will be performed. An audit plan should be developed that includes a time budget.arrow_forwardWhy are auditors interested in substantial investment losses occurring early in the following year-end?arrow_forwardDuring your annual audit of Walker Distributing Company, your assistant, Jane Williams, reports to you that, although a number of entries were made during the year in the general ledger account Notes Payable to Officers, she decided that it was not necessary to audit the account because it had a zero balance at year-end. Required: Do you agree with your assistant’s decision? Discuss.arrow_forward
- Which of the following BEST (select one) describes why auditing can be viewed as a continuous cyclical process? a) The audit plan is used to develop the audit schedule. b) Many audit departments review the same areas each year as part of the audit plan. c) Historical and current information from audits should be incorporated into the risk assessment. d) Businesses go through economic cycles, so audit plans must go through cycles.arrow_forwardAssume that you will be unable to inspect the securities owned by the client on the balance sheet date. What changes should be made to audit procedures if the inspection is not performed until two weeks after the balance sheet date?arrow_forwardWilliam Jackson, the CEO of RPL, has requested that the tests of controls only be performed once due to the disruption caused by audit staff to the work of the staff in the printing and shipping department. In addition, he has requested that the tests of controls occur only during July 2018, as this is traditionally the quietest time of the year for RPL. You expect the audit report to be signed on 15 August 2018. Ignoring considerations of limitation of scope, discuss the effects of William’s requests on the sufficiency and appropriateness of the audit evidence to be gathered.arrow_forward
- 60 days after the date of the auditor's report is ordinarily an appropriate time limit within which to complete the assembly of the final audit file. True Falsearrow_forwardWhich of the following is not valid for External Audit? It is conducted by the employees of the company The scope is decided by the statue External audit is conducted once in a year There is an obligation to conduct external Auditarrow_forwardWhen should the final report from an external auditor be issued? After interim reports During the exit conference At the beginning of the auditing process After the auditor leaves the premise for the last timearrow_forward
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