Place the following audit steps in the order that the activity occurs, with each
ID: 2400965 • Letter: P
Question
Place the following audit steps in the order that the activity occurs, with each step, include a description of why the step is important in the overall audit plan and what it accomplishes.Understand internal control and assess control risk.
Perform analytical procedures for accounts payable.
Confirm accounts payable.
Perform tests of controls and substantive tests of transactions for the acquisition and payment and payroll/personnel cycles.
Perform other tests of details of balances for accounts payable.
Perform tests for subsequent events.
Accept the client.
Issue the audit report.
Set acceptable risk and decide preliminary judgment about materiality and performance materiality. Place the following audit steps in the order that the activity occurs, with each step, include a description of why the step is important in the overall audit plan and what it accomplishes.
Understand internal control and assess control risk.
Perform analytical procedures for accounts payable.
Confirm accounts payable.
Perform tests of controls and substantive tests of transactions for the acquisition and payment and payroll/personnel cycles.
Perform other tests of details of balances for accounts payable.
Perform tests for subsequent events.
Accept the client.
Issue the audit report.
Set acceptable risk and decide preliminary judgment about materiality and performance materiality. Place the following audit steps in the order that the activity occurs, with each step, include a description of why the step is important in the overall audit plan and what it accomplishes.
Understand internal control and assess control risk.
Perform analytical procedures for accounts payable.
Confirm accounts payable.
Perform tests of controls and substantive tests of transactions for the acquisition and payment and payroll/personnel cycles.
Perform other tests of details of balances for accounts payable.
Perform tests for subsequent events.
Accept the client.
Issue the audit report.
Set acceptable risk and decide preliminary judgment about materiality and performance materiality. Place the following audit steps in the order that the activity occurs, with each step, include a description of why the step is important in the overall audit plan and what it accomplishes.
Understand internal control and assess control risk.
Perform analytical procedures for accounts payable.
Confirm accounts payable.
Perform tests of controls and substantive tests of transactions for the acquisition and payment and payroll/personnel cycles.
Perform other tests of details of balances for accounts payable.
Perform tests for subsequent events.
Accept the client.
Issue the audit report.
Set acceptable risk and decide preliminary judgment about materiality and performance materiality.
Explanation / Answer
1) Accept the client
firstly the audit firm should accept the proposal from the client company , when selecting the client the firm should scan properly to ensure that they have selected suitable client.
2) Set acceptable risk and decide preliminary judgment about materiality and performance materiality.
then secondly set audit manager access the audit risk and set the materiality , materiality is a minimum base set by auditor to prevent the probability of aggregate or individual misstatement .
3)Understand internal control and assess control risk.
4) Perform tests of controls and substantive tests of transactions for the acquisition and payment and payroll/personnel cycles.
5)Perform analytical procedures for accounts payable.
6)Perform other tests of details of balances for accounts payable.
7)Confirm accounts payable.
8)Perform tests for subsequent events.
9)Issue the audit report.