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25-20 (Objective 25-8) The following questions concern reports issued by auditors, other than those on historical financial s
engagements b. Describe what you should do in each of the preceding situations, assuming each one is material. 25-23 (Objecti
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Answer #1

Question 25-20:

a. (1)    Cash receipts and disbursements and the assets and liabilities arising from cash transactions.

b. (2)    Materiality must be related to the specific item rather than to the financial statements taken as a whole.

c. (1)    May not describe auditing procedures applied.

Question 25-23:

a REQUIRED ON A COMPILATION ENGAGEMENT b. REQUIRED ON A REVIEW ENGAGEMENT X PROCEDURE 1. х 2. X X 3. X X 4 х 5. X х 6. 7. 8.

X = Required procedure

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