Question

what are some audit strategies or procedures to address the risks of material misstatement regarding expenses and overstated revenue

Answer 1

AUDIT STRATEGIES OR PROCEDURES TO ADDRESS THE RISKS OF MATERIAL MISSTATEMENT REGARDING EXPENSES AND OVERSTATED REVENUE

Revenue

1. auditor should ensure all revenue items are properly record in the book of account.

2.ensure complete recording of all revenues

3.examine revenue invoices and ensure value of invoices are properly recorded and ensure     values are not overstated

4. auditor should ensure whether the revenues recorded in the period were really occurred.

5. if any risk of material misstatement due to overstated revenue ,communicate management and ask them to rectify.

6.if management not rectify ,then it will reported according to auditing standard.

Expenses

1. auditor should ensure all expenses items are properly record in the book of account.

2.ensure complete recording of all expenses

3.examine expenses bil and ensure value of invoices are properly recorded and ensure     values are not understated

4. auditor should ensure whether the expenses recorded in the period were really occurred.

5. if any risk of material misstatement due to expenses ,communicate management and ask them to rectify.

6.if management not rectify ,then it will reported according to auditing standard.