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Audit Questions and Answers (Q&A)

John Smith
Answered: Dec 05, 2022
Tests of details of balances are designed to determine the reasonableness of the balances in sales, accounts receivable, and other account balances that are affected by the sales and collection...Read More

3 Answers

2820 views
John Smith
Answered: Dec 05, 2022
The most important difference between (a) tests of controls and substantive tests of transactions and (b) tests of details of balances is in what the auditor wants to measure. in tests of controls...Read More

1 Answer

1691 views
John Smith
Answered: Dec 05, 2022
A proper cutoff of purchases and sales is heavily dependent on the physical inventory observation because a proper cutoff of sales requires that finished goods inventory included in the physical...Read More

1 Answer

1402 views
John Smith
Answered: Dec 05, 2022
Acceptable risk of incorrect acceptance (aria) is the risk the auditor is willing to take of accepting a balance as correct when the true misstatement in the balance is greater than tolerable...Read More

1 Answer

910 views
Matz Lewis Clark, College student
Answered: Jan 17, 2019
This type of approach may be considered more conservative but will be absolutely necessary to make sure that people will be paying for the items that they have ordered on time. Accounts payable...Read More

2 Answers

819 views
H.Jennifer
Answered: Feb 03, 2018
An audit is an assessment of a business or a company that analyzes the place and assess whether it is functioning at certain standards or not. When it comes to an auditor’s responsibility,...Read More

2 Answers

789 views
John Smith
Answered: Dec 05, 2022
Analytical procedure/type of potential misstatemen. Compare gross margin percentage with previous years. Overstatement or understatement of inventory amounts (prices and/or quantities). Com...Read More

1 Answer

505 views
John Smith
Answered: Dec 05, 2022
Monetary unit sampling is a method whereby the population is defined as the individual dollars (or other currency) making up the account balance. A random sample is drawn of these individual...Read More

1 Answer

432 views
John Smith
Answered: Dec 05, 2022
The major considerations the auditor should take into account in determining how extensive the subsequent events review should be are: the companys financial strength and stability of earnings the...Read More

2 Answers

382 views
Zidepah
Answered: Dec 05, 2022
Both statements are wrong.

1 Answer

363 views
John Smith
Answered: Dec 05, 2022
The reason for the emphasis on current period acquisitions in auditing property, plant, and equipment is that there is an expectation that permanent assets will be kept and maintained on the records...Read More

1 Answer

363 views
L. Brett, Sales Manager
Answered: Jan 03, 2019
Asymmetry often refers to the imbalance of the details and information acquired by the stockholders and the management of the company. There are moments when this occurs because of mismanagement...Read More

3 Answers

306 views
John Smith
Answered: Dec 05, 2022
Confirmation of accounts receivable is normally performed on only a sample of the total population. The purpose of the confirmation is to obtain outside verification of the balance of the account...Read More

1 Answer

276 views
I. Klose, Accountant
Answered: Jul 05, 2019
Both audits and evaluations are carried out to ensure that there are no financial abnormalities in a financial institution. Evaluation can be performed in any organization. Audit and assessment...Read More

1 Answer

267 views

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