BDO Audit and Assurance Executive Interview Questions, Process, and Tips

Substantive testing involves testing the accuracy and completeness of financial information, while control testing evaluates the effectiveness of internal controls.

• Substantive testing is used to gather evidence on the accuracy and completeness of financial information.

• Control testing is used to evaluate the effectiveness of internal controls in place to prevent and detect errors or fraud.

• Substantive testing includes pr...read more

Accounts payable and receivable are audited by examining invoices, payments, reconciliations, and internal controls.

• Reviewing invoices and matching them to purchase orders and receiving reports

• Confirming balances with vendors and customers

• Analyzing aging reports to identify overdue payments

• Testing internal controls related to authorization, recording, and reconciliation of transactions

• Performing cutoff tests to ensure

Materiality is the concept of determining the significance or importance of information in relation to a specific context.

• Materiality is a subjective concept that varies depending on the nature of the information and its impact on decision-making.

• It involves assessing whether the information, if omitted or misstated, would influence the decisions of users of the financial statements.

• Materiality is often considered in t...read more

Materiality is the concept of determining the significance or importance of information in relation to a specific context.

• Materiality helps auditors decide what information is important enough to include in their reports

• It is based on the principle that only significant information should be included in financial statements

• Materiality is influenced by factors such as the size of the item, its nature, and the needs of t

Substantive tests are procedures performed to detect material misstatements in financial statements, while tests of controls evaluate the effectiveness of internal controls.

• Substantive tests are used to gather evidence about the completeness, accuracy, and validity of the financial information.

• Examples of substantive tests include analytical procedures, substantive analytical procedures, and tests of details.

• Tests of c...read more