Final/review analytical procedures are a key part of wrapping up the audit. Often times, the procedures involve reperforming risk assessment procedures done during planning and making sure that sufficient audit evidence was obtained to explain any notable differences. Please complete the following questions. 1. In Chapter 4, you were asked to identify customers with large total sales volume. One large customer was identified as having an unusually large balance. What substantive procedures should have been completed during the audit to provide evidence that the revenue related to this one customer was fairly stated? 2. In Chapter 5, you forecasted Q4 sales and then compared them to actual sales. This suggested that some months had higher sales than expected. What substantive procedures should have been completed during the audit to provide evidence that revenue during Q4 was not overstated? 3. Final/review analytics provide the auditor with a chance to take one last, big-picture view of the audited entity's financial statements. What purpose does this serve, and how can it be different than detailed substantive testing?
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To provide evidence that the revenue related to the unusually large balance of the identified customer was fairly stated, the auditor should have performed the following substantive procedures: - Obtained and reviewed the customer's sales contract to ensure that Show more…
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