Discussion Questions- Auditing Class
Please answer the following 6 discussion questions inatleast 100 words perquestion. Do not answer them as an essay. Please answer them under the question set.
1. Under what circumstances is it acceptable to perform tests of controls and substantive tests of transactions for sales and cash receipts at an interim date?
2. Define what is meant by alternative procedures in the confirmation of accounts receivable and explain their purpose. Which alternative procedures are the most reliable? Why?
3. List several audit procedures that the auditor can use to determine whether all cash received was recorded.
4. Explain what is meant by a proof of cash receipts and state its purpose.
5. Describe what is meant by a cutoff bank statement and state its purpose.
6. Briefly explain why accounting standards related to fair value estimates make the audit of financial instruments more complex.