(Audit programs and assertions) Assume that you are responsible for developing a
ID: 2422189 • Letter: #
Question
(Audit programs and assertions) Assume that you are responsible for developing an audit program for a manufacturing client that sells to over 1,400 customers. You want to ensure your audit program addresses all relevant assertions for sales and accounts receivable. Address the following question in the context of the audit sales and receivables for this manufacturing client.
Required
What is the purpose of an audit program?
Explain why auditors translate audit assertions into specific audit objectives when developing an audit program.
I need both questions answered please
(Audit programs and assertions) Assume that you are responsible for developing an audit program for a manufacturing client that sells to over 1,400 customers. You want to ensure your audit program addresses all relevant assertions for sales and accounts receivable. Address the following question in the context of the audit sales and receivables for this manufacturing client.
Required
What is the purpose of an audit program?
Explain why auditors translate audit assertions into specific audit objectives when developing an audit program.
I need both questions answered please
Explanation / Answer
(A) purpose of an audit program
Answer ; An audit program documents decisions about the audit procedures that the auditor
believes are necessary to obtain reasonable assurance that the financial statements
are presented fairly in all material respects. An audit program will usually list
procedures to be performed, identify who performed the procedures and the date
that the procedures were performed, and provide a cross reference to the working
papers where the procedures are documented.
(B) Explain why auditors translate audit assertions into specific audit objectives when developing an audit program.
Answer ; Auditors translate audit assertions into specific audit objectives in order to guide the process of collecting evidence. Audit objectives are a refinement of assertions and each audit objective requires unique evidence to support a conclusion about the audit objective.
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