What is the importance of the audit evidence

Assignment Help Accounting Basics

Reference no: EM132988523

Instructions:

Read and analyze the situation below. Answer the following items on the space provided.

Louie, a CPA, is engaged to audit the financial statements of Judah Company for the year ended December 31, 201A. Louie obtained and documented an understanding of internal control relating to the purchasing process and set control risk at the maximum level. Louie requested and obtained from Judah a schedule analyzing prepaid insurance as of December 31, 201A, and sent confirmation request to Judah's broker.

a. What substantive procedures should Louie conduct in verifying the schedule of prepaid insurance and to respond appropriately to the following assertions?

1) Existence and completeness

2) Rights and obligations

3) Valuation or allocation

4) Presentation and disclosure

b. What is the importance of the audit evidence gathered from the audit procedures?

Reference no: EM132988523

Questions Cloud

Work out what percentage of households bought : Using the sales equation again, work out what percentage of households bought Ultrabrite in a quarter and in a typical week. How do these figures compare with C

Providing evidence of researcher qualifications : If a report spends time/space providing evidence of researcher qualifications, it is building which of Aristotle's types of proof?

Difference between horizontal growth and vertical growth : What is the difference between horizontal growth and vertical growth

Outline strategies for identifying and assessing risks : Identify and outline strategies for identifying and assessing risks.

What is the importance of the audit evidence : What is the importance of the audit evidence gathered from the audit procedures and What substantive procedures should Louie conduct in verifying the schedule

Which tv advertising format does the ad utilize : 1 Which TV advertising format(s) does the ad utilize? Straight AnnouncementTestimonialDemonstrationMusical/Jingle

Write a bad news letter explaining to the candidate : Write a Bad News letter explaining to the candidate (Brad Pitt) that although qualified for the position, he did not get the job of an HR manager

Promote patient care and organizational sustainability : How do these regulatory influences promote patient care and organizational sustainability?

Examining forecasting and management control processes : Present critical debate to review the impact of 'smarter' technologies in the overall budgeting processes when examining forecasting and management control

User Account

All Pages