Category Archive for: The Auditor Response to Assessed Risks

QUESTIONS AND ANSWERS

Compare procedures for tests of controls over purchases in a manual system and in IT environment Tests of controls-manual system (a) Ordering – Carry out sequence test of purchase orders – Inspect signatures of the persons who have approved purchase orders – Verify that the purchase orders have been approved within the authority limits. (b) Receiving –…

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AUDIT PROCEDURES RESPONSlVE TO RISK OF MATERIAL MISSTATEMENT AT THE ASSERTION LEVEL

The phrase “audit procedures responsive to risk of material misstatement” means that based upon assessed risk of inherent and control risks the auditor should (a) plan for overall response and (b) plan and perform audit procedures in relation to specific assertions. OVERALL RESPONSES AT FINANCIAL STATEMENT LEVEL 1. The auditor should determine overall responses to address risks…

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