An auditor who is auditing accounts receivable would least likely perform which of the following tests?...
An auditor who is auditing accounts receivable would least likely perform which of the following tests?
1. Confirm a sample of accounts receivables with the customers that owe the balances.
2. Obtain an aged trial balance of accounts receivable and trace the total to the general ledger control account.
3. Vouch cash receipts to the accounts receivables transactions.
4. Select cash disbursements made shortly after year-end and examine the supporting documentation such as receiving reports and vendor invoices.
Homework Answers
Solution:
An auditor who is auditing accounts receivable would least likely perform test that is "Select cash disbursements made shortly after year-end and examine the supporting documentation such as receiving reports and vendor invoices."
Hence option 4 is correct.
Add Answer to:
An auditor who is auditing accounts receivable would least
likely perform which of the following tests?...
1.To conclude that a management review control is effective, the auditor is required to identify a...
1.To conclude that a management review control is effective, the auditor is required to identify a selection of instances in which the control operated, evaluate whether management followed the procedures specified by the control, and properly evaluated and resolved exceptions. A) True B) False 2. Which of the following statements about substantive analytical procedures is correct? A) The results of the procedure provide evidence about the existence or absence of misstatement in an account. B) The results of the procedure...
Auditing The following are various audit procedures performed to satisfy specific transaction-related audit objectives as discussed...
Auditing
The following are various audit procedures performed to satisfy
specific transaction-related audit objectives as discussed in
Chapter 6. The general transaction-related audit objectives from
Chapter 6 are also included.
(Objective 7-4) The following are various audit procedures performed to satisfy specific transaction-related audit objectives as discussed in Chapter 6. The general transaction-related audit objectives from Chapter 6 are also included. Audit Procedures 1. Trace from receiving reports to vendors' invoices and entries in the acquisitions journal. 2. Add the...
Items 1 through 6 represent the items that an auditor ordinarily would find on a client-prepared...
Items 1 through 6 represent the items that an auditor ordinarily
would find on a client-prepared bank reconciliation. The
accompanying List of Auditing Procedures
represents substantive auditing procedures. For each item, select
one or more procedures, as indicated, that the auditor most likely
would perform to gather evidence in support of that item. The
procedures on the list may be selected once, more than once, or not
at all.
Assume
•
The client
prepared the bank reconciliation on 10/2/X5.
•...
Case Study question in Auditing You are the audit supervisor of Hasel Co, which is a...
Case Study question in Auditing You are the audit supervisor of Hasel Co, which is a manufacturing company. You are currently planning the audit of trade receivables for the year ended 31 December 20x8. At 31 December, Hasel’s trade receivables balance was $6.500.000. Hasel Co has more than 600 customers, including nine customers owing more than $250.000 each. Tests of control revealed weaknesses in Hasel’s internal control over sales and trade receivables. In prior year audits, confirmations revealed misstatements in...
DQ 1: The following are various management assertions related to sales and account receivable. Required: For...
DQ 1: The following are various management assertions related to sales and account receivable. Required: For each assertion, indicate whether it is an assertion about classes of transactions and events or an assertion about account balances. Indicate the name of the assertion made by management. MANAGEMENT ASSERTION CATEGORY OF MANAGEMENT ASSERTION NAME OF ASSERTION a. Recorded accounts receivable exist. b. Disclosures related to sales are relevant and understandable. c. Recorded sales transactions have occurred. d. There are no liens or...
auditing Part Two: Multiple Choice Questions: (2.5 marks/ question) 1. To test the existence assertion for...
auditing
Part Two: Multiple Choice Questions: (2.5 marks/ question) 1. To test the existence assertion for recorded receivables, an auditor would select a sample from the A) Sales orders file. B) Customer purchase orders C) Accounts receivable subsidiary ledger D) Shipping documents (bill of lading) file. 2. When control risk for the existence assertion is assessed at a high level, which of the Gallerine is a likely effect with respect to the auditors' confirmation of receivables? A) The account balances...
If the auditor is performing substantive tests at an interim date, the auditor must perform steps...
If the auditor is performing substantive tests at an interim date, the auditor must perform steps to update their conclusion to the date of the financial statements. True False Flag this Question Question 2 Audit data analytics can be used _______. -only at the beginning of the audit -only at the end of the audit. -by the internal audit function only -at virtually any phase of the audit Question 3 Once the auditor has planned the application of audit data...
Requirement b. Identify the type of evidence for each procedure. Procedure Type of Evidence Discuss the...
Requirement b. Identify the type of evidence for each procedure. Procedure Type of Evidence Discuss the duties of the cash disbursements clerk with him and observe whether he has responsibility for handling cash or preparing the bank 1. reconciliation. Examine the internal auditor's initials on monthly bank reconciliations as 2. an indication of whether they have been reviewed. Account for a sequence of checks in the cash disbursements journal to 3. determine whether any have been omitted. Examine vendors' invoices...
1. As a part of auditing depreciation expense the auditor tests whether the client has followed...
1. As a part of auditing depreciation expense the auditor tests whether the client has followed a consistent policy and the calculations are correct. Which of the following audit objectives is the auditor addressing? A) Cut-off B) Occurrence C) Completeness D) Accuracy 2. The auditor used positive confirmations to test accounts receivable, but several of the confirmations were not returned. Which of the following auditing procedures would the auditor perform on the non-responses? A) Inspect shipping documents to verify that...
Auditing
The following are various audit procedures performed to satisfy
specific transaction-related audit objectives as discussed in
Chapter 6. The general transaction-related audit objectives from
Chapter 6 are also included.
(Objective 7-4) The following are various audit procedures performed to satisfy specific transaction-related audit objectives as discussed in Chapter 6. The general transaction-related audit objectives from Chapter 6 are also included. Audit Procedures 1. Trace from receiving reports to vendors' invoices and entries in the acquisitions journal. 2. Add the...
Items 1 through 6 represent the items that an auditor ordinarily
would find on a client-prepared bank reconciliation. The
accompanying List of Auditing Procedures
represents substantive auditing procedures. For each item, select
one or more procedures, as indicated, that the auditor most likely
would perform to gather evidence in support of that item. The
procedures on the list may be selected once, more than once, or not
at all.
Assume
•
The client
prepared the bank reconciliation on 10/2/X5.
•...
auditing
Part Two: Multiple Choice Questions: (2.5 marks/ question) 1. To test the existence assertion for recorded receivables, an auditor would select a sample from the A) Sales orders file. B) Customer purchase orders C) Accounts receivable subsidiary ledger D) Shipping documents (bill of lading) file. 2. When control risk for the existence assertion is assessed at a high level, which of the Gallerine is a likely effect with respect to the auditors' confirmation of receivables? A) The account balances...
Requirement b. Identify the type of evidence for each procedure. Procedure Type of Evidence Discuss the duties of the cash disbursements clerk with him and observe whether he has responsibility for handling cash or preparing the bank 1. reconciliation. Examine the internal auditor's initials on monthly bank reconciliations as 2. an indication of whether they have been reviewed. Account for a sequence of checks in the cash disbursements journal to 3. determine whether any have been omitted. Examine vendors' invoices...
Most questions answered within 3 hours.
-
Does direct Medicare reimbursement of Advanced practice nurses
increase access to their services?
asked 26 minutes ago -
List and explain why a company would choose to use a
published
compensation survey vs. creating...
asked 38 minutes ago -
A discrete random variable X can take values from 1 to 10. Find
the variance of...
asked 51 minutes ago -
The primary financial goal of a corporation is to maximize:
shareholders wealth.
earnings per share.
stock...
asked 58 minutes ago -
determine whether the vectors u=(1,2,3,), v=(-2,1,0) and
w=(1,0,1) are linearly dependent or independent.
asked 1 hour ago -
python
Define a function called print_values which takes a dictionary
object as a parameter. The function...
asked 2 hours ago -
In Chapter 1 you created a program named Triangle in
which you displayed a seven-line triangle...
asked 2 hours ago -
Research question: What are the differences between separately
stated and non separately stated transactions in an...
asked 2 hours ago -
By using Arduino write a code that connects two LEDs to two
push-buttons. Each button controls...
asked 3 hours ago -
Bank of America has bonds that pay a coupon interest rate of 5.5
percent and mature...
asked 4 hours ago -
Problem: Patient Fees C++
You are to write a program that computes a patient’s bill for...
asked 5 hours ago -
In a population of interest, we know that, 77% drink coffee, and
23% drink tea. Assume...
asked 6 hours ago