80.Which of the following procedures would an auditor most likely perform in planning a financialstatement audit?a.Inquiring of the client’s legal counsel concerning pending litigation.b.Comparing the financial statements to anticipated results.c.Examining computer generated exception reports to verify the effectiveness of internal control.d.Searching for unauthorized transactions that may aid in detecting unrecorded liabilities.
81.Analytical procedures used in planning an audit should focus on82.The objective of performing analytical procedures in planning an audit is to identify the existence of
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83.Which of the following nonfinancial information would an auditor most likely consider in performinganalytical procedures during the planning phase of an audit?84.An auditor should design the written audit program so that
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a.All material transactions will be selected for substantive testing.b.Substantive tests prior to the balance sheet date will be minimized.c.The audit procedures selected will achieve specific audit objectives.d.Each account balance will be tested under either tests of controls or tests of transactions.
85.The audit program usuallycannotbe finalized until the
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86.Audit programs should be designed so that
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a. Make a preliminary judgment about materiality. b. Confirm a sample of the entity's accounts payable with known creditors. c. Obtain written representations from management that there are no unrecorded transactions. d. Communicate management's initial selection of accounting policies to the audit committee.
Home » Test Prep » CPA Auditing and Attestation » Which of the following procedures would an auditor most likely perform in planning a financial statement audit?
Which of the following procedures would an auditor most likely perform in planning a financial statement audit?
A. Inquiring of the client’s legal counsel concerning pending litigation.
B. Comparing the financial statements to anticipated results.
C. Examining computer generated exception reports to verify the effectiveness of internal controls.
D. Searching for unauthorized
transactions that may aid in detecting unrecorded liabilities.
Last Updated on February 3, 2022 by Admin 3
- Inquiring of the client’s legal counsel concerning pending litigation.
- Comparing the financial statements to anticipated results.
- Examining computer generated exception reports to verify the effectiveness of internal controls.
- Searching for unauthorized transactions that may aid in detecting unrecorded liabilities.
Explanation:
Choice “B” is correct. A requirement during planning is to perform analytical procedures, which involve comparisons of recorded amounts to expectations.
Choice “A” is incorrect. Inquiry of the client’s legal counsel is typically performed near the end of fieldwork.
Choice “C” is incorrect. Tests of controls are performed after audit planning is complete.
Choice “D” is incorrect. The search for unrecorded liabilities is generally performed at or after year-end.
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