List each of the five types of audit tests and list at least two types of evidence that may be obtained from each type of test.

-

List each of the five types of audit tests and list at least two types of evidence that may be obtained from each type of test.


Answer:

• Procedures to obtain an understanding of internal control - documentation, observation, inquiries of the client, and re-performance.
• Tests of controls - documentation, observation, inquiries of the client, and re-performance.
• Substantive tests of transactions - documentation, inquiries of the client, and reperformance.
• Analytical procedures - inquiries of the client and analytical procedures.
• Tests of details of balances - physical examination, confirmation, documentation, inquires of the client, and reperformance.

Comments

Post a Comment

Popular posts from this blog

What is JAD and how are users involved? What are advantages and disadvantages of JAD?

-
What is JAD and how are users involved? What are advantages and disadvantages of JAD? Joint application development, is a popular fact finding technique that brings users into the development process as active participants. Users have a vital stake in the information system, and should participate fully in the development process. They are/should be involved at every stage of development. Advantages : Users can participate effectively in the requirements modeling stage. More accurate statement of systems requirements, better understanding of common goals and stronger commitment to success of the new project Disadvantages : More expensive, can be cumbersome if the group is too large for the project.
Read more

Describe at least three of the general information skills essential for all business careers.

-
Describe at least three of the general information skills essential for all business careers. General information skills essential for all business careers include   (1) understanding how information systems and technologies can help firms achieve business objectives such as operational efficiency, developing new products and services, and maintaining customer intimacy.  Also essential is (2) an understanding the central role of databases in a modern firm as well as (3) developing skills in the analysis of information in order to help firms understand and make sense out of their environments.  (4) All business majors need to be able to work with specialists and system designers who build and implement information systems. This is necessary to ensure that the systems that are built actually service business purposes and provide the information and understanding required by managers and employees.  In addition, students need to (5) understand how ...
Read more

Why do firms need to invest in net working capital?

-
Why do firms need to invest in net working capital? Answer: - Short-term financial planning is concerned with the management of the firm's short-term, or current, assets and liabilities. The most important current assets are cash, marketable securities, inventory, and trade receivables. The most important current liabilities are bank loans and trade payables. - The difference between current assets and current liabilities is called NET WORKING CAPITAL (NWC). NWC arises from lags between the time the firm obtains the raw materials for its product and the time it finally collects its bills from customers. The OPERATING CYCLE is the length of time from the purchase of raw materials to the collection of cash from customers. - The cash CONVERSION CYCLE is the length of time between the firm's payment for materials and the date that it gets paid by its customers. THE CASH CONVERSION CYCLE is partly within management's control. For example, it can choose to have a higher ...
Read more