Auditors can usually gather sufficient, competent evidence on prepaid insurance by performing substantive analytical procedures. Why is this?
What will be an ideal response?
The audit of prepaid insurance should ordinarily take a relatively small amount of audit time because the balance in prepaid insurance is normally immaterial, there are ordinarily few transactions made during the year, and these transactions are ordinarily not complex.
You might also like to view...
Preventive controls are passive techniques designed to reduce fraud
Indicate whether the statement is true or false
The proper goal of the financial manager should be to maximize the firm's expected profit, because this will add the most wealth to each of the individual shareholders (owners) of the firm.?
Answer the following statement true (T) or false (F)
Brand and product managers operate cross-functionally.
Answer the following statement true (T) or false (F)
From a sample of 500 items, 30 were found to be defective. The point estimate of the population proportion defective will be:
a. 0.06 b. 30.0 c. 16.667 d. none of these choices