Homework Answers
1. Test of control
2. Test of control
3. Test of control
4. Test of details of balances
5. Test of control
6. Test of details of balances
7. Test of details of balances
8. Test of details of balances
9. Substantive analytical procedure
10. Substantive test of transactions
11. Substantive analytical procedure
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Requirement a. Indicate whether each procedure is a test of control, substantive test of transactions, substantive...
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...
Requirement e. For each likely misstatement, identify a substantive audit procedure to determine whether the misstatement...
Requirement e. For each likely misstatement, identify a substantive audit procedure to determine whether the misstatement exists. (Substantive audit procedures may be used more than once.) ) (Click the icon to view the substantive audit procedures.) Substantive Audit Substantive Audit Procedures Internal Controls Procedure 1. Approved purchase orders are required for all acquisitions of goods. Prenumbered receiving reports are prepared as support for acquisitions and 2. numerically accounted for. Dates on receiving reports are compared with vendors' invoices before entry...
13-26 (Objectives 13-1, 13-2, 13-5) The following are audit procedures from different transaction cycles: Examine sales...
13-26 (Objectives 13-1, 13-2, 13-5) The following are audit procedures from different transaction cycles: Examine sales invoices for evidence of internal verification of prices, quantities, and extensions. Select items from the client’s perpetual inventory records and examine the items in the company’s warehouse. Use audit software to foot and cross-foot the cash disbursements journal and trace the balance to the general ledger. Examine loan agreements for key information such as interest rate, payment schedules, collateral, and restrictive covenants to determine...
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...
Requirement c. For each control, identify an audit procedure that could be used to test the...
Requirement c. For each control, identify an audit procedure that could be used to test the control for effectiveness. (Audit procedures may be used more than once.) (Click the icon to view the audit procedures to test controls.) 1 Test of Control Internal Controls Test of Control 1. Approved purchase orders are required for all acquisitions of goods. Prenumbered receiving reports are prepared as support for acquisitions and 2. numerically accounted for. Dates on receiving reports are compared with vendors'...
For each of the following audit procedures listed below perform the following: Indicate the type of...
For each of the following audit procedures listed below perform the following: Indicate the type of audit test each represents (A) test of controls only, (B) substantive test of details only, (C) substantive analytical procedure only, (D) dual test. Only one should be selected for each procedure. 1. Recalculate accrued interest for the 12 months ended 12/31/2019. 2. Select a sample of purchases from the purchases journal and agree to vendor invoices and receiving documents. 3. Confirm cash balances and...
(Click the icon to view the intemal controls.) i Click the icon to view the test...
(Click the icon to view the intemal controls.) i Click the icon to view the test of controls.) Begin by selecting one internal control for each of the six transaction-related audit objectives for cash disbursements. Then, for ea Internal Test of Transaction-Related Audit Objectives Control Controls 1. Recorded cash disbursements are for goods and services actually received (occurrence) 2. Existing cash disbursement transactions are recorded (completeness). 3. Recorded cash disbursement transactions are accurate (accuracy) 4. Cash disbursement transactions are correctly...
Requirement a. Identify the phase of the audit in which each activity occurs. Phase of Audit...
Requirement a. Identify the phase of the audit in which each activity occurs. Phase of Audit Set acceptable audit risk and decide preliminary judgment about materiality 1. and performance materiality Understand internal control and assess 2. control risk. I. Plan and Design an Audit Approach Perform substantive analytical 3. procedures for accounts payable. II. Perform Tests of Controls and Substantive Tests of Transactions JII. Perform Substantive Analytical Procedures and Tests of Details of Balances 4. Confirm accounts payable. IV. Complete...
20-20 (Objectives 20-2, 20-3) Following are some of the tests of controls and substantive tests of...
20-20 (Objectives 20-2, 20-3) Following are some of the tests of controls and substantive tests of transactions procedures often performed in the payroll and personnel cycle. 1. Reconcile the monthly payroll total for direct manufacturing labor with the labor cost distribution. 2. Examine the time card for the approval of a foreman. 3. Recompute hours on the time card and compare the total with the total hours for which the employee has been paid. 4. Perform a surprise payroll payoff...
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...
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...
Requirement e. For each likely misstatement, identify a substantive audit procedure to determine whether the misstatement exists. (Substantive audit procedures may be used more than once.) ) (Click the icon to view the substantive audit procedures.) Substantive Audit Substantive Audit Procedures Internal Controls Procedure 1. Approved purchase orders are required for all acquisitions of goods. Prenumbered receiving reports are prepared as support for acquisitions and 2. numerically accounted for. Dates on receiving reports are compared with vendors' invoices before entry...
Requirement c. For each control, identify an audit procedure that could be used to test the control for effectiveness. (Audit procedures may be used more than once.) (Click the icon to view the audit procedures to test controls.) 1 Test of Control Internal Controls Test of Control 1. Approved purchase orders are required for all acquisitions of goods. Prenumbered receiving reports are prepared as support for acquisitions and 2. numerically accounted for. Dates on receiving reports are compared with vendors'...
(Click the icon to view the intemal controls.) i Click the icon to view the test of controls.) Begin by selecting one internal control for each of the six transaction-related audit objectives for cash disbursements. Then, for ea Internal Test of Transaction-Related Audit Objectives Control Controls 1. Recorded cash disbursements are for goods and services actually received (occurrence) 2. Existing cash disbursement transactions are recorded (completeness). 3. Recorded cash disbursement transactions are accurate (accuracy) 4. Cash disbursement transactions are correctly...
Requirement a. Identify the phase of the audit in which each activity occurs. Phase of Audit Set acceptable audit risk and decide preliminary judgment about materiality 1. and performance materiality Understand internal control and assess 2. control risk. I. Plan and Design an Audit Approach Perform substantive analytical 3. procedures for accounts payable. II. Perform Tests of Controls and Substantive Tests of Transactions JII. Perform Substantive Analytical Procedures and Tests of Details of Balances 4. Confirm accounts payable. IV. Complete...
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