External Auditing question - substantive procedures or test of controls or both
gstarr
Registered Posts: 8
Hi
I'm hoping someone is able to answer this.
The question comes from the osborne workbook practice assessment 2 and I don't understand the reasoning behind the solutions in the the back.
identify the most likely approach to be taken by an auditor in the following circumstances;
a) audit work in a company where records are fully computerised and maintained by the accountant and an assistant
b) verifying the valuation of trade payables
c) reviewing a provision for doubtful debts
d) carrying out the audit of a company which has an internal audit function which monitors operational and financial controls
Your choices for each are out of the below;
1 - test of controls only
2 - substantive procedures only
3 - a mixture of test of controls and substantive procedures
Please could you give your reasonings behind your choices.
I'm hoping someone is able to answer this.
The question comes from the osborne workbook practice assessment 2 and I don't understand the reasoning behind the solutions in the the back.
identify the most likely approach to be taken by an auditor in the following circumstances;
a) audit work in a company where records are fully computerised and maintained by the accountant and an assistant
b) verifying the valuation of trade payables
c) reviewing a provision for doubtful debts
d) carrying out the audit of a company which has an internal audit function which monitors operational and financial controls
Your choices for each are out of the below;
1 - test of controls only
2 - substantive procedures only
3 - a mixture of test of controls and substantive procedures
Please could you give your reasonings behind your choices.
0
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