Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 1. cynthia roberts, cpa, expresses the following v

1. Cynthia Roberts, CPA, expresses the following viewpoint: I do not believe in performing tests...

50.1K

Verified Solution

Question

Accounting

1. Cynthia Roberts, CPA, expresses the following viewpoint: I do not believe in performing tests of controls and substantive tests of transactions for the sales and collection cycle. As an alternative, I send a lot of negative confirmations on every audit at an interim date. If I find a lot of misstatements, I analyze them to determine their cause. If internal controls are inadequate, I send positive confirmations at year-end to evaluate the amount of misstatements. If the negative confirmations result in minimal misstatements, which is often the case, I have found that the internal controls are effective without bothering to perform tests of controls and substantive tests of transactions, and the confirmation requirement has been satisfied at the same time. In my opinion, the best test of internal controls is to go directly to third parties. Evaluate her point of view.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

Explain how a plain vanilla interest rate swap is constructed. Analyse the comparative advantage argument for the...

Basic Math
1.2K views

Finance. Suppose that $4,100 is invested at 3.2% annual interest rate, compounded monthly. How much...

Basic Math
1.2K views

Paul Rey bought two new Dunlop tires at Goodyear for 96 19 per tire Goodyear...

Accounting
1.2K views

10) Kansas Enterprises purchased equipment for $74,000 on January 1, 2024....

Accounting
1.2K views

1 10 points "This is...

Accounting
1.2K views

The following information is needed to reconcile the cash balance for Discount Dry Cleaning, Inc....

Accounting
1.2K views

can someone break down how to do this for me i feel like is so...

Accounting
1.2K views

Courington's detailing's

Accounting
1.2K views

Suds & Cuts is a local pet grooming shop owned by Collin Bark. Collin has...

Accounting
1.2K views

A county capital projects fund receives resources of $8,000,000 from a bond issue and a...

Accounting
1.2K views

The Akron Slugger Company produces various types of wooden baseball bats. It has calculated the...

Accounting
1.2K views

c. d. Timing of tests performed after the balance sheet date. Auditor's familiarity with industry...