Auditing And Assurance Services
17th Edition
ISBN: 9780134897431
Author: ARENS, Alvin A.
Publisher: PEARSON
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Chapter 13, Problem 14RQ
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Explain the relationship between the methodology for designing test of controls and substantive tests of transactions and the methodology for designing tests of details of balances.
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Discuss the purposes of (1) substantive tests of transactions, (2) tests of controls, and (3) tests of details of balances. Give an example of each.
State the relationship between the confirmation of accountsreceivable and the results of the tests of controls and substantive tests of transactions.
Should an auditor wishing to assess the adequacy of separation of functions examine a data flow diagram or a system flowchart? Why?
Chapter 13 Solutions
Auditing And Assurance Services
Ch. 13 - Prob. 1RQCh. 13 - Prob. 2RQCh. 13 - Prob. 3RQCh. 13 - Prob. 4RQCh. 13 - Prob. 5RQCh. 13 - Prob. 6RQCh. 13 - Explain how the calculation and comparison to...Ch. 13 - Prob. 8RQCh. 13 - Prob. 9RQCh. 13 - For each of the eight types of evidence discussed...
Ch. 13 - Prob. 11RQCh. 13 - Prob. 12RQCh. 13 - Prob. 13RQCh. 13 - Prob. 14RQCh. 13 - Prob. 15RQCh. 13 - Prob. 16RQCh. 13 - Prob. 17RQCh. 13 - Prob. 18RQCh. 13 - Prob. 19RQCh. 13 - Prob. 20RQCh. 13 - Prob. 21.1MCQCh. 13 - Prob. 21.2MCQCh. 13 - A conceptually logical approach to the auditors...Ch. 13 - Prob. 22.1MCQCh. 13 - Prob. 22.2MCQCh. 13 - Prob. 22.3MCQCh. 13 - Prob. 23.1MCQCh. 13 - b. Substantive analytical procedures are most...Ch. 13 - Prob. 23.3MCQCh. 13 - Prob. 24DQPCh. 13 - Prob. 25DQPCh. 13 - Prob. 26DQPCh. 13 - Prob. 27DQPCh. 13 - Prob. 28DQPCh. 13 - Prob. 29DQPCh. 13 - Prob. 30DQPCh. 13 - Prob. 31DQPCh. 13 - Prob. 32DQPCh. 13 - Prob. 33DQPCh. 13 - Prob. 34DQPCh. 13 - Prob. 35DQP
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- Define and explain the following. Provide two references A: Audit data analytics B: Audit data analytics procedures.arrow_forwardDescribe what analytical procedures and tests of details of balances are and give an example of each.arrow_forwardDistinguish among tests of details of balances, tests of controls,and substantive tests of transactions for the sales and collection cycle. Explain how thetests of controls and substantive tests of transactions affect the tests of details of balances.arrow_forward
- Identifying the condition of the data is part of which task? A. Performing a data audit B. Performing extract, transform and load (ETL) C. Performing data analysis D. Conducting a data assessmentarrow_forwardinvolves checking the mathematical accuracy of documents. a. Inquiry b. Analytical Procedure c. Computation d. Confirmationarrow_forwardDefine and explain the following: A: Audit data analytics B: Audit data analytics procedures.arrow_forward
- Explain the link between application controls and the audit goals for transaction-related audits.arrow_forwardExplain the following: A: The significance of audit data analytics B: Audit standards and data analyticsarrow_forwardListed in the table below are some common audit procedures. For each procedure below: Identify whether it is a test of control (TOC), substantive test of transaction (STOT), analytical procedure (AP) or a test of details of balances (TODOB). Write your answer in the 2nd column of the table below. State one audit objective that is being satisfied. Write your answer in the 3rd column of the table below. Procedure (a) Type of Test (b) Audit Objective Example: Compare the quantity and description of items on duplicate sales invoices with related shipping documents. STOT Accuracy 1.Foot the list of accounts payable and trace the balance to the general ledger. 2. Account for the sequence of purchase orders 3. Select a sample of purchase transactions from purchase journal and trace them to vendors’ invoices and statements 4. Exam cash payments subsequent to the balance date to see if they are related to unrecorded…arrow_forward
- Which of the following is often called a compensating control?a. transaction authorizationb. supervisionc. accounting recordsd. independent verificationarrow_forwardIn the consideration of internal control, the operating effectiveness of controls is tested by: Flowcharts verification, Test of controls substantive procedures, or Decision tables, or neitherarrow_forwardState the four-step approach to designing tests of controls andsubstantive tests of transactionsarrow_forward
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