For which of the following tests would an auditor most likely use attribute sampling?(1) Selecting accounts receivable for confirmation of account balances.(2) Inspecting employee time cards for proper approval by supervisors.(3) Making an independent estimate of the amount of a LIFO inventory.(4) Examining invoices in support of the valuation of fixed asset additions.

Q: An example of an analytical procedure is the comparison of O Results of a statistical sample with…

A: Analytical procedures involve comparing financial data or performance metrics of a company with…

Q: Attribute Sampling and Monetary-Unit Sampling are two sampling techniques designed to help an…

A: Monetary-Unit Sampling and Attribute Sampling are two different type of sampling techniques widely…

Q: Analytical procedures consist of evaluating financial information by studying financial and…

A:

Q: tangible fixed assets

A: The audit of tangible fixed assets is done to verify the authenticity, existence, accuracy and…

Q: When performing audit procedures, the auditor is faced with an uncertainty of not detecting material…

A: Define sampling risk. Sampling risk is the risk that a sample statistic will differ from the true…

Q: Explain whether or not analytical review procedures would be sufficient for the audit of the…

A: Auditing is the examination and verification of the financial statements prepared by the entity and…

Q: Auditors make materiality judgments during the planning/risk assessment phase of the audit to be…

A: Introduction: An auditor verifies the authenticity of commercial transactions that have been…

Q: An auditor simply compares a current year balance with the prior year balance in order to help…

A: To identify trends, analysing the data of just one year and compare it with current year will not be…

Q: What type of substantive testing (not test of controls) should be used for each of the following…

A: Substantive  testing is also known as substantive procedures, which are the procedures an auditor…

Q: In order to determine whether accounts payable are understated, auditors wish to obtain a sample of…

A: The objective of the question is to identify the most appropriate sampling method for auditors to…

Q: factor to be considered by an auditor while performing analytical procedures?

A: Option a is wrong because it is a correct statement. Auditor will procure an expected amounts or…

Q: Indicate the primary audit objective satisfied by this audit procedure: Add the client's fixed asset…

A: Asset is defined as any resource or item that assists in attracting income to the owner. Each asset…

Q: In testing the existence assertion for an asset, an auditor ordinarily works from the

A: The correct answer is: (D) Accounting records to the supporting evidence. An auditor works from the…

Q: When the auditor uses monetary unit statistical sampling to examine the totaldollar value of…

A: Auditor is the independent personnel who is responsible for checking the financial information and…

Q: basic step in auditing unclaimed salaried and wages is to verify disposition of the account…

A: Auditing means the independent checking of company operation by outsider. Auditor is a qualified and…

Q: An auditor discovered the following matters while performing tests of controls: 2.A purchase of raw…

A: a)Control - Enforcing clear record-keeping and documentation procedures.

Q: An auditor selected items for test counts while observing a client’s physical inventory.The auditor…

A: Qualitative characteristics of Accounting Information System:   Qualitative characteristics are…

Q: Listed below are several of the auditors’ general objectives in performing substantive procedures on…

A: Audit procedures is the criteria or steps performed by the auditor in order to get all the…

Q: When auditing the existence assertion for an asset, auditors proceed from thea. Financial statement…

A: Definition: Existence assertion: Existence assertion is a management assertion where it is asserted…

Q: The most probable audit processes to verify receivables written off as uncollectible include Explain…

A: Procedure for auditing: Audit procedures are the processes, strategies, and methods used by auditors…

Q: not a procedure used by an auditor in searching for unrecorded disposals of long-lived assets?

A: Option a is wrong because the examination of property tax records provides information on tax on…

Q: Attribute sampling enables the auditor to directly assess whether a rule is operating successfully…

A: Monetary unit sampling is a statistical sampling method used in auditing to test the accuracy of…

Q: Which of the following audit procedures is aimed most directly at testing the completeness assertion…

A: For acco payable auditor should  perform  appropriate  audit procedure  for testing  completeness…

Q: What is the primary purpose of analytical procedures performed during the planning stages of the…

A: Solution: Analytical Procedures refers to the evaluation of financial information via identifying…

Q: For which of the following audit tests would an auditor most likely use attribute sampling?…

A: Audit tests: An audit test is a sample drawn from a larger population with the intention of testing…

Q: To allocate the preliminary estimate of materiality to the accounts, the auditor might consider A.…

A: in order to plan the nature timining and extent of the audit procedure that is needed to perform the…

Q: An auditor selected items for test counts while observing a client’s physical inventory. The auditor…

A: Management assertion: Management assertion refers to the claim made by the management assuring about…

Q: An auditor will most likely review an entity’s periodic accounting for the numericalsequence of…

A: The assertion that an event took place and transactions were recorded chronologically is the…

Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.