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Auditors can perform detail tests of control audit

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Auditors can perform detail tests of control audit procedures to determine whether the client throughout the period ofintended reliance is actually performing controls that are said to be in place and operating. What two characteristics must adetail test of controls audit procedure have in order to be successful?The auditor must identify the population of the data that the sample will be extracted from. The auditor must also expresswhat action will be taken to produce relevant evidence. In general, the actions will involve vouching, tracing, observing,scanning, and recalculating amounts and transactions in the normal course of business.EssayTB 12-50 Auditors can perform detailtests of control audit...TB 12-51 Briefly explain why the auditor's inventory tests ...Briefly explain why the auditor's inventory tests counts are conducted in two directions.To test for completeness, the auditor's test counts proceed from assets to records, that is, the auditor counts selectedinventory items in the warehouse and then checks to see if they are properly included in the perpetual records. To test forvalidity, the auditor's test counts proceed from records to assets, that is, the auditor selects some inventory items from theperpetual records then checks to see if they are, in fact, on hand in the warehouse.EssayTB 12-51 Briefly explain why theauditor's inventory tests ...TB 12-52 Explain why auditors must put greater emphasis on ...Explain why auditors must put greater emphasis on the completeness assertion when auditing accounts payable. Contrastthis with the audit of assets.Auditors are more concerned about overstatement of equity than understatement. As a result, auditors need to ensure thatthere are no unrecorded liabilities, that is, that the accounts payable records are complete. Controls over the timelyrecording of expenses and liabilities are not as stringent as controls over assets. Companies control their assets veryclosely but often rely on their suppliers for control over liabilities. Even as they send statements to their customers, theyknow that their suppliers will send statements to them. In contrast, the emphasis in the case of assets is the existenceassertion—do all recorded assets exit. It is easier to verify existence than completeness. In verifying existence, the auditoris examining items that have been recorded—the population is known. In verifying completeness, however, the auditor islooking for items that are not recorded—the population is unknown.EssayTB 12-52 Explain why auditors mustput greater emphasis on ...Downloaded by Sivashanhari Kasotharan ([email protected])lOMoARcPSD|4016112
award:1.00 pointaward:1.00 pointTB 12-53 Jack PA is the auditor of Jill Corporation. Jack f...Jack PA is the auditor of Jill Corporation. Jack followed last year's working papers in selecting accounts payable to confirm.

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Auditor s report

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