Analytica 3.54 Audit Procedures. Auditors use different types of procedures auditors can necessary to conclude that the risk of material misstatement has been reduced to an acceptably low level. List eight different types of procedures use during an audit of financial statements, and give an example of each. 3.55 Confirmation Procedure. A CPA accumulates various types of evidence on which to base the opinion on financial statements. Among this evidence are confirmations from third parties. Required: a. What is an audit confirmation? b. What characteristics of the confirmation process and the recipient are important if a CPA is to consider the confirmation evidence appropriate?
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This third party can be a customer, supplier, bank, or any other relevant party that has a relationship with the auditee. The purpose of an audit confirmation is to independently verify the information provided by the auditee and to reduce the risk of Show more…
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