How is the directional risk of cash applied in determining the  appropriate audit procedures to be performed?

Q: An analyst who is interested in assessing a company’s fi nancial position is most likely to focus on…

A: Financial statement includes statement of cash flows, Balance sheet and Profit and loss statement.

Q: How can information based on past transactions be usedto predict future cash flows?

A: Past transactions can be used to predict future cash flows is a true statement.

Q: Describe the procedure of Estimating Risky Cash Flows?

A: Risky cash flow means the future cash flow which falls short of the expectations. This shortage may…

Q: How does an audit of financial statements pertain to agency theory?

A: Agency theory is an approach to analysing various relationship in term of principal and agent. The…

Q: Difference between business risk and audit risk?

A: Risk is the chances that actual will differ from expected results.

Q: eceipts and payments must be classified in the statement of cash flows as to whether they are from…

A:

Q: Determine what are some of the risk assessment procedures to be made in order for the auditor to…

A: Auditing is the process of supervision made by the external person or internal employee in the…

Q: What is the maturity period required for an investment to qualify under the definitions of a cash…

A: Cash and cash equivalents correspond to just the line item on the balance sheet that lists the value…

Q: Discuss in detail all aspects of management of cash at Bidvest. Your discussion must include, but…

A: Managing cash is an important aspect of financial management for any organization, and Bidvest, a…

Q: Why might the riskiness of cash flow from the residual value of the real estate differ from the…

A: It is nothing but the salvage value or scrap value of an asset. It speaks to the measure of…

Q: he differences in the risks and mechanics of on-balance-sheet hedging and off-balance-sheet h

A: Step 1 Balance sheet enclosure is not intended to protect the company's profit margin from monetary…

Q: What is an example of audit procedure when performing an accounts payable risk assessment for…

A: Auditing of Accounts Payable Accounts Payable is considered to be one of the important part in the…

Q: Explain the objective ofconducting an audit of financialstatements and an audit ofinternal controls.

A: The Audit is an examination of a financial statement that dictates that all financial transactions…

Q: How is liquidity risk associated with the asset side of the balance sheet?

A: Liquidity risk in an asset will motivate the investor/buyer to pay a lower price for acquiring it.

Q: Comparison between 2020E ratios and industry averages - (c) Asset utilization ratios; (1) Are the…

A: (c) Assets utilization ratios represent how efficiently the company utilizes its assets to earn…

Q: What are some of the typical areas of concern to auditors involving investment accounts?

A: Investment Accounts: The accounts held with banks, investment companies, and brokerage houses for…

Q: How do you think the misstatement of funds will impact the income statement and balance sheet?

A: Income statement is a statement which shows all income and expenses of the business with calculation…

Q: Explain TWO (2) audit objectives of cash.

A: Audit is a regular and systematic process to investigate books of account by auditors for accuracy…

Q: Whether the act of overstating in revenue is considered and classified to be a significant risk.…

A: Revenue: Revenue is income earned by a firm selling its goods and services to other parties. The…

Q: How do you assess the risk of material misstatement associated with the audit of investments?

A: Inherent risk and control risks are part of the risk of material misstatement. There can be a risk…

Q: audit of cash the

A: Correct Answer :- Existence

Q: How is the directional risk of investments applied in determining the appropriate audit procedures…

A: Answer: The directional risk of investment is the risk of overstatement of the investments.

Q: distinguish between the direct and indirect methods of presenting cash from operating activities and…

A: Cash flow statement is a statement which shows the inflow and outflow of cash for a particular…

Q: How does investments control deficiencies affect the development of audit procedures for…

A: Audit procedure refers to the steps that are performed through auditors in order to get all the…

Q: How does audit risk relate to audit evidence?

A: Audit Evidence   The information obtained by the auditor from numerous sources (finance records,…

Q: Describe the process of estimating Risky Cash Flows?

A: Process of estimating Risky Cash flows.

Q: What is the net adjustment to Net Income as a result of the audit?

A:

Q: How do the direct and the indirect methods differ in their approach to computing the net cash…

A:

Fraud

Fraud in accounting is the planned manipulation of financial documents to make a false appearance of corporate financial health. Moreover, it includes an employee, accountant, or the company itself misleading investors and shareholders.