EBK AUDITING & ASSURANCE SERVICES: A SY
11th Edition
ISBN: 9781260687668
Author: Jr
Publisher: MCGRAW-HILL LEARNING SOLN.(CC)
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Question
Chapter 3, Problem 3.12RQ
To determine
Concept Introduction:
The information in the accounts and financial statements can be said as material if its misstatement or omission influences the economic decision of user of financial statements. The information can be said as material depends on the size of the organization, size of item amount and also the legal effect of the transaction also affects its materiality. All the material information in the accounts or financial statements should be checked in detail by the auditors.
To discuss: Major steps in applying materiality to an audit
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Distinguish between lapping and kiting. Describe audit procedures that can be used to uncover each.
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Chapter 3 Solutions
EBK AUDITING & ASSURANCE SERVICES: A SY
Ch. 3 - Prob. 3.1RQCh. 3 - Prob. 3.2RQCh. 3 - Prob. 3.3RQCh. 3 - Prob. 3.4RQCh. 3 - Prob. 3.5RQCh. 3 - Prob. 3.6RQCh. 3 - Prob. 3.7RQCh. 3 - Prob. 3.8RQCh. 3 - Prob. 3.9RQCh. 3 - Prob. 3.10RQ
Ch. 3 - Prob. 3.11RQCh. 3 - Prob. 3.12RQCh. 3 - Prob. 3.13RQCh. 3 - Prob. 3.14RQCh. 3 - Prob. 3.15RQCh. 3 - Prob. 3.16MCQCh. 3 - Prob. 3.17MCQCh. 3 - Prob. 3.18MCQCh. 3 - Prob. 3.19MCQCh. 3 - Prob. 3.20MCQCh. 3 - Prob. 3.21MCQCh. 3 - Prob. 3.22MCQCh. 3 - Prob. 3.23MCQCh. 3 - Prob. 3.24MCQCh. 3 - Prob. 3.25MCQCh. 3 - Prob. 3.26PCh. 3 - Prob. 3.27PCh. 3 - Prob. 3.28PCh. 3 - Prob. 3.29PCh. 3 - Prob. 3.30PCh. 3 - Prob. 3.31PCh. 3 - Prob. 3.32P
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Similar questions
- Distinguish between internal documentation and external documentation as types of audit evidence. Give two examples of each. Which type is considered more reliable?arrow_forwardDefine audit risk and describe how it can be broken down into the three separate components of the audit risk model to help assess and respond to such risks during the audit planning process.arrow_forwardAn audit plan is : a. The blueprint for conducting the audit and accomplishing the audit objectives. b. The flowchart for conducting the audit and accomplishing the audit objectives. c. The footprint for conducting the audit and accomplishing the audit objectives. d. The gannchart for conducting the audit and accomplishing the audit objectives.arrow_forward
- essentially describe what materiality means in the context of the audit.arrow_forwardAnalytical procedures are a critical part of audit work. Describe at least three different analytical procedures and explain how to perform each.arrow_forwardChoose three of the skills required for effective operational audits and explain the importance and why these skills are necessary.arrow_forward
- Define the audit risk model and explain each term in the model.Also describe which two factors of the model when combined reflect the risk of materialmisstatements.arrow_forwardd) Name the four types of tests auditors normally perform in an audit after risk assessment is done.arrow_forwardList three reasons management may ask for an operational audit to be performed, and explain how the audit program would be impacted by each of them.arrow_forward
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