Describe the Following Audit Procedures,providing an example of How Each

question 40

Essay

Describe the following audit procedures,providing an example of how each procedure could be used to gather evidence for the accounting process using the types of tests specified below.Acquisition and Expenditure Process-Internal Control tests
a.Inquiry
b.Observation
Acquisition and Expenditure Process-Substantive tests
c.Confirmation
d.Analytical procedures
e.Recalculation

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Definitions:

Substitutes

Substitutes are goods or services that can be used in place of each other, fulfilling the same needs or desires of the consumer.

Price Inelastic

A situation where the demand or supply for a product does not change significantly when its price changes.

Good X

A placeholder term used in economics to represent a specific product or commodity in theoretical discussions.

Midpoint Method

A technique used in economics to calculate the elasticity of demand or supply by using the midpoint between two points on a curve instead of relying on the initial or final point alone.