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Posted: June 29th, 2022
Tests of controls and substantive tests of
transactions
Assignment: Tests of controls and
substantive tests of transactions.
Assignment: Tests of controls and substantive tests of
transactions.
1. As auditors move from the planning phase to the fieldwork
phase of an audit, they recognize they will not be able to test all
transaction in order to offer their opinion on the financial
statements. Therefore, various sampling techniques and
principles have been developed to Help the auditor in providing
adequate coverage and a reliable opinion using samples of
transactions.
Discuss audit sampling for tests of details of balances and for
tests of controls and substantive tests of transactions. How do
they differ?
Student Post
2. Discuss audit sampling for tests of details of balances and for
tests of controls and substantive tests of transactions. How do
they differ?
Audit sampling is used to calculate several features concerning
balances and classes in financial statements. An Auditor uses a
sampling method to determine whether controls are functioning
successfully. “Auditors use sampling for tests of controls and
substantive tests of transactions to determine whether controls
are operating effectively and whether the rate of monetary errors
is below tolerable limits. In tests of controls and substantive tests
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