$1.00 ACC 490
Indicate the possible reasons and actions the auditor may take when the upper misstatement limit exceeds tolerable misstatement in a PPS sampling plan.
Why is the understanding of the client’s business and industry important in tests of details for accounting estimates?
REQUIRED: Identify and discuss the three types of substantive procedures, addressing the relative effectiveness and cost of each.
Describe the contents and use of an audit program.
The nature of substantive tests refers to the type and effectiveness of the auditing procedures to be performed.
If the auditor tests controls only at a particular point in time, then the auditor only obtains evidence that the control operated effectively at that point in time. When the auditor obtains evidence about the design or operation of controls during an interim period, he or she should determine what additional evidential matter should be obtained for the remaining period. List five factors the auditor should consider when considering the evidence that needs to be obtained during the remaining period.