Determine the factors of auditors, Financial Management

Assignment Help:

Determine the factors of auditors

When anticipating to apply analytical review as a substantive procedure, auditors determine a number of factors like:

Factor

Impact on use

Plausibility/predictability of relationships

If relationship is strong (for example commission on sales) analytical procedure may suffice.

Degree of disaggregation of available

information

Procedures are more effective when applied to components.

Availability of financial and non-financial

data

Independently prepared non-financial data will allow more effective procedures.

Relevance of information

Budgets which are based on expectation are more useful than targets.

Comparability of information

Broad industry data (for example RPI) mayn't be relevant to specialised industry.

Knowledge gained previously

Effective procedures are based on recognising unexpected/unusual variations.

If knowledge is limited, it's difficult to know what to expect.

Reliability of various forms of data

If data used is unreliable, then any results are equally unreliable hence procedures less effective.

Nature of enterprise and its operations

Some businesses lend themselves to analytical procedures as steady trends develop therefore easier to know what to expect and spot variations.

 


Related Discussions:- Determine the factors of auditors

Describe modigliani and miller approach of capital structure, Q. Describe M...

Q. Describe Modigliani and Miller Approach of Capital Structure? Ans. Modigliani as well Miller Approach: - The Modigliani-Miller approach is alike to the net operating income

Otcei index, OTCEI-COMPOSITE INDEX The OTCEI index is a pure price inde...

OTCEI-COMPOSITE INDEX The OTCEI index is a pure price index. The sum of the prices of all shares as of June, 1993 is in the denominator. The current prices are in the numerator

What is a treasury bill? how risky is it?, What is a Treasury bill? How ris...

What is a Treasury bill? How risky is it? Treasury bills are the short-term debt instruments issued by the U.S. Treasury that are sell at a discounted and pay face value at mat

Apv capital budgeting is use for foreign capital expenditure, What creates ...

What creates the APV capital budgeting framework useful for analyzing foreign capital expenditures? The APV framework is a value - additivity method. Since international projects

Stock on tap, Stock on Tap: Most of the players who invest in these sec...

Stock on Tap: Most of the players who invest in these securities are institutions and hence the volumes are high. Considering that these securities are the first choice for ban

Leveraged buyout (lbo), Leveraged Buyout (LBO) Acquisition of an organi...

Leveraged Buyout (LBO) Acquisition of an organization through the accumulation of 70 % or more of the organizations total capitalized debt.

Define defined benefit and defined contribution pension plan, Compare and c...

Compare and contrast a defined benefit and a defined contribution pension plan. In a defined benefit plan, retirement benefits are defined by a formula that generally considers t

The investment of public pension monies, Question: (a) The key determin...

Question: (a) The key determinants of investment decisions in the public sector are:- legal, political and financial factors. Show the importance of each determinant when de

UMMB, what is the benefits of UMMB

what is the benefits of UMMB

Credit analysis for formulation of optimum credit policy, Q. Credit Analysi...

Q. Credit Analysis for Formulation of Optimum Credit Policy? Credit Analysis: - Credit Analysis is made to estimate the credit worthiness of the customers before making credi

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd