Once the auditor has decided on procedures, the acquisitions and cash payments tests are typically performed:
A) concurrently, to achieve efficiency without reducing the effectiveness of the tests.
B) by different audit staff, to maintain independence.
C) consecutively, to achieve efficiency without reducing the effectiveness of the tests.
D) separately, to maximise the effectiveness of the tests.

Question

Quizplus · Accepted Answer

Concurrent performance of acquisitions and cash payments tests is the best choice as it achieves efficiency without reducing the effectiveness of the tests. It allows the auditor to gather evidence for both tests at the same time, which can save time and reduce costs. Additionally, performing the tests concurrently can lead to better coordination and communication among auditors and clients, reducing the risk of errors or omissions.

Once the Auditor Has Decided on Procedures, the Acquisitions and Cash