Auditing And Assurance Services
17th Edition
ISBN: 9780134897431
Author: ARENS, Alvin A.
Publisher: PEARSON
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Question
Chapter 19, Problem 28DQP
a.
To determine
Describe the relationship between the tests of controls and substantive tests of transactions and the audit of property, plant, and equipment and leases.
b.
To determine
Identify the affect of tests of controls and substantive tests of transactions results planned tests of details for property, plant, and equipment and leases and conclusions for each balance-related audit objective.
c.
To determine
Define the relationship between the tests of controls and substantive tests of transactions results in Case 18-30 and the audit of expenses.
d.
To determine
Explain the affect of the tests of controls and substantive tests of transactions results and conclusions drawn (1 through 7) on planned tests of details of balances for expenses.
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Students have asked these similar questions
Following are seven audit activities.
1 (Click the icon to view the audit activities.)
Requirement
For each activity listed above, indicate in which phase of the audit the procedure was likely performed.
1 (Click the icon to view the phases of the audit.)
Audit activity
Phase
а.
Examine invoices supporting recorded fixed asset additions.
b.
Review industry databases to assess the risk of material misstatement in the financial statements.
С.
Summarize misstatements identified during testing to assess whether the overall financial
statements are fairly stated.
An auditor discovered the following matters while performing tests of controls:
2.A purchase of raw materials was recorded as a purchase of supplies.
Required:
a.What control would have prevented or detected each of the above misstatements?
b.What test should the auditor perform to test the control?
c.To which financial statement assertion does the misstatement relate?
In performing risk assessment procedures for property, plant and equipment, an auditor may inquire of the client personnel which of the following questions?
a. Is depreciation calculation and recording automated?
b. Is there periodic physical count and tagging of property, plant and equipment? Is the result of the count reconciled to ledgers and general ledgers?
c. Both a and b.
d. Neither a nor b.
Chapter 19 Solutions
Auditing And Assurance Services
Ch. 19 - Identify three asset accounts, three expense...Ch. 19 - Explain the relationship between substantive tests...Ch. 19 - Prob. 3RQCh. 19 - Prob. 4RQCh. 19 - Prob. 5RQCh. 19 - Prob. 6RQCh. 19 - Prob. 7RQCh. 19 - Prob. 8RQCh. 19 - Prob. 9RQCh. 19 - Prob. 10RQ
Ch. 19 - Which documents will be used to verify accrued...Ch. 19 - Prob. 12RQCh. 19 - Prob. 13RQCh. 19 - Prob. 14RQCh. 19 - Prob. 15.1MCQCh. 19 - Prob. 15.2MCQCh. 19 - Prob. 15.3MCQCh. 19 - Prob. 16.1MCQCh. 19 - Prob. 16.2MCQCh. 19 - Prob. 16.3MCQCh. 19 - Prob. 17.1MCQCh. 19 - Prob. 17.2MCQCh. 19 - Prob. 17.3MCQCh. 19 - Prob. 18.1MCQCh. 19 - Prob. 18.2MCQCh. 19 - Prob. 18.3MCQCh. 19 - Prob. 19DQPCh. 19 - Prob. 20DQPCh. 19 - Prob. 21DQPCh. 19 - Prob. 22DQPCh. 19 - Prob. 24DQPCh. 19 - Prob. 25DQPCh. 19 - You are auditing the financial statements of...Ch. 19 - Prob. 27DQPCh. 19 - Prob. 28DQPCh. 19 - Prob. 29DQP
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