Questions from Auditing and Assurance

Q: Distinguish the three types of service organization reports.

Distinguish the three types of service organization reports.

Q: Explain the purpose of a client letter of representation. What types

Explain the purpose of a client letter of representation. What types of information are normally included in the letter?

Q: How does an auditor evaluate the unadjusted misstatement schedule (also called

How does an auditor evaluate the unadjusted misstatement schedule (also called summary of possible misstatements) at the end of the audit engagement to assess whether the financial statements are fair...

Q: What are the steps of the audit sampling process that differ across

What are the steps of the audit sampling process that differ across statistical and nonstatistical sampling approaches? In what ways do they differ?

Q: Describe two types of substantive analytical procedures often performed in the audit

Describe two types of substantive analytical procedures often performed in the audit of the sales and collection cycle and describe how they might indicate a possible misstatement in the financial sta...

Q: Which of the nine accounts receivable balance-related audit objectives can

Which of the nine accounts receivable balance-related audit objectives can be partially satisfied by confirmations with customers?

Q: Distinguish between a positive and a negative confirmation and state the circumstances

Distinguish between a positive and a negative confirmation and state the circumstances in which each should be used.

Q: An auditor is determining the appropriate sample size for testing inventory valuation

An auditor is determining the appropriate sample size for testing inventory valuation using MUS. The population has 3,140 inventory items valued at $19,325,000. The tolerable misstatement is $575,000...

Q: Explain the major difference between statistical and nonstatistical sampling. Are both

Explain the major difference between statistical and nonstatistical sampling. Are both methods acceptable according to auditing standards?

Q: What are the major differences in the 14 steps used in nonstatistical

What are the major differences in the 14 steps used in nonstatistical sampling for tests of details of balances versus the steps for tests of controls and substantive tests of transactions?