Indicate a specific audit procedure under each of the following categories, as applied particularly in the sales and collection cycle. a. test of control b. substantive test of transactions c. substantive test of account balances

Indicate a specific audit procedure under each of the following categories, as applied particularly in the sales and collection cycle. a. test of control b. substantive test of transactions c. substantive test of account balances

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter11: Auditing Inventory, Goods And Services, And Accounts Payable: The Acquisition And Payment Cycle

Section: Chapter Questions

Problem 25CYBK

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Question

Indicate a specific audit procedure under each of the following categories, as applied particularly in the sales and collection cycle.
a. test of control
b. substantive test of transactions
c. substantive test of account balances

Definition Definition Methods and techniques used by the auditor to gather the appropriate evidence so that a true and fair judgment can be made on the quality of the financial statements of the client. Audit procedures are developed after determining audit objectives, scope, approach, and risk assessment.

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