Raisa Alexseev Was Getting Ready to Perform Analytical Procedures at Vulcan

Question

Examlex · Accepted Answer

The Answer is When performing analytical procedures, the steps Raisa will perform can be summarized as follows:
1. Identify the computation, comparison or relationship to be made or to be investigated. Raisa would compare the allowance or commissions amounts in the current year's accounts and compare them to the methods and outcomes of previous years.
2. Assess the reliability of any data to be used. Raisa will ensure that the accounts receivable controls over transactions have been tested and that substantive procedures such as accounts receivable confirmations have been carried out.
3. Estimate the probable balance in the account or the probable outcome of the computation. If the client uses percentage of receivables or aging percentages, Raisa will estimate this year's anticipated balance using the data available.
4. Make whatever computations are needed using data in the client's records or data from reliable outside sources. Raisa will use her calculator or software to perform computations on the allowance for doubtful account amount or the reasonableness of the commissions expense.
5. Compare the estimated amount with the computed or recorded amount and evaluate whether the difference, if any, is significant.
6. Determine appropriate procedures for investigating the reasons for the difference if it is significant. Raisa will have discussions with the client's personnel such as the credit manager and sales vice president.
7. Perform the procedures.
8. Draw conclusions. Based on the procedures applied and her conclusions, Raisa may have to perform more substantive work in order to be satisfied with the reliability of underlying data.

Raisa Alexseev Was Getting Ready to Perform Analytical Procedures at Vulcan

Essay

Correct Answer:
Verified

Raisa Alexseev Was Getting Ready to Perform Analytical Procedures at Vulcan

Essay

Correct Answer:VerifiedShow Answer

Correct Answer:
Verified