Homework Answers
| Sr. No | Audit Procedure | Assertion |
| 1 | Obtain aged accounts receivable trail balance | Accuracy |
| 2 | Confirm a sample of accounts receivables | Existence |
| 3 | Test Sales cutoff | Cutoff |
| 4 | Test reasonableness of allowance of doubtful accounts | Valuations |
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s Part 2 Audit Planning and Barr Ad LO 3- 9 3-30 Exhibit 3-2 contains a...
AP114 (LO 8) not discovered by an inexperienced staff auditor in the audit of the Parson...
AP114 (LO 8) not discovered by an inexperienced staff auditor in the audit of the Parson Company. Moderate Substantive tests of accounts receivable The following situations were 1. Several accounts were incorrectly aged in the client's aging schedule. 2. The accounts receivable turnover ratio was far below expected results. 3. Goods billed were not shipped. 4. Some year-end sales were recorded in the wrong accounting period. ral sales were posted for the correct amount but to the wrong customers in...
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...
Kindly, provide short answers. Thank you. Class Discussion Exercise- Accounts Receivable Audit Objectives and Procedures for...
Kindly, provide short answers.
Thank you.
Class Discussion Exercise- Accounts Receivable Audit Objectives and Procedures for Accounts Receivable. In the audit of accounts receivable, auditors develop specific audit assertions related to the receivables. They then design specific substantive procedures to obtain evidence about each of these assertions, Here is a selection of accounts receivable assertions: Accounts receivable represent all amounts owed to the client company at the balance sheet date. b. a. The client company has a legal right to...
14-26 (Objective 14-3) The following are selected transaction-related audit objectives and audit procedures for sales transactions:...
14-26 (Objective 14-3) The following are selected transaction-related audit objectives and audit procedures for sales transactions: Transaction-Related Audit Objectives 1. Recorded sales exist. 2. Existing sales are recorded. 3. Sales transactions are correctly included in the accounts receivable master file and are correctly summarized. Procedures 1. Trace a sample of shipping documents to related duplicate sales invoices and the sales journal to make sure that the shipment was billed. 2. Examine a sample of duplicate sales invoices to determine whether...
QUESTION 3 The information that auditors use when arriving at their opinion on the fair presentation...
QUESTION 3 The information that auditors use when arriving at their opinion on the fair presentation of the client’s financial statements is called _______. A. audit evidence B. relevant assertion C. receivable confirmation D. working papers QUESTION 6 An integrated audit focuses on ________. A. integrating the internal and external audit functions B. auditing both internal control over financial reporting(ICFR) and the financial statements C. integrating component auditors D. comparing prior year results with the current year to look for...
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...
Assertions: Evidence Types Existence Occurrence Accuracy Classification Cutoff Completeness Valuation/Allocation Rights/Obligations Presentation Inspection of documents/records Inspection...
Assertions: Evidence Types Existence Occurrence Accuracy Classification Cutoff Completeness Valuation/Allocation Rights/Obligations Presentation Inspection of documents/records Inspection of tangible assets Observation Scanning evidence Inquiry Confirmation Reperformance Recalculation Analytical Evidence Part 2: Assume you are the audit team for the audit of Waren Sports Supply (a client with a traditional information system, which you should be familiar with). Imagine that this is the first time you’ve audited them, so you need to develop your own audit programs to make sure important assertions...
PART 2 THE COSO FRAMEWORK CASE (22 MINUTES - 29 MARKS) Wellness is nutrition supplement provider...
PART 2 THE COSO FRAMEWORK CASE (22 MINUTES - 29 MARKS) Wellness is nutrition supplement provider and is planning a public offering in the next two years. The CEO and CFO are close friends since high school and their spouses and children have become friends too. Wellness has an independent audit committee of board of directors that oversees the external and internal auditors. The audit committee also sets management compensation based on financial results. The company is planning an expansion...
auditing Part One: True / False Questions (2.5 marks/ question) 1. An aged trial balance of...
auditing
Part One: True / False Questions (2.5 marks/ question) 1. An aged trial balance of accounts receivable may provide evidence on the adequacy of the allowance for uncollectible accounts 2. Confirmation of accounts receivable by direct communication with the debtor tests the existence of accounts receivable. 3. The examination of warehouse receipts is sufficient verification of a material amount of goods stored in public warehouses. 4. The receiving department should accept only goods for which there is an approved...
The BakFirn Corporation, a publicly traded firm, has contracted with YOUCPA, your public accounting firm, for...
The BakFirn Corporation, a publicly traded firm, has contracted with YOUCPA, your public accounting firm, for an audit. The BakFirn Corporation manufactures specialty construction tools. The tools are used in the unique construction of homes, warehouses, and multiunit dwellings. The prices range from $1,000 to $5,000 per unit. During the audit, the audit team has determined the risk assessment of the client. Consequently, the audit has to respond to the assessed risks of material misstatement at the financial statement and...
AP114 (LO 8) not discovered by an inexperienced staff auditor in the audit of the Parson Company. Moderate Substantive tests of accounts receivable The following situations were 1. Several accounts were incorrectly aged in the client's aging schedule. 2. The accounts receivable turnover ratio was far below expected results. 3. Goods billed were not shipped. 4. Some year-end sales were recorded in the wrong accounting period. ral sales were posted for the correct amount but to the wrong customers in...
Kindly, provide short answers.
Thank you.
Class Discussion Exercise- Accounts Receivable Audit Objectives and Procedures for Accounts Receivable. In the audit of accounts receivable, auditors develop specific audit assertions related to the receivables. They then design specific substantive procedures to obtain evidence about each of these assertions, Here is a selection of accounts receivable assertions: Accounts receivable represent all amounts owed to the client company at the balance sheet date. b. a. The client company has a legal right to...
PART 2 THE COSO FRAMEWORK CASE (22 MINUTES - 29 MARKS) Wellness is nutrition supplement provider and is planning a public offering in the next two years. The CEO and CFO are close friends since high school and their spouses and children have become friends too. Wellness has an independent audit committee of board of directors that oversees the external and internal auditors. The audit committee also sets management compensation based on financial results. The company is planning an expansion...
auditing
Part One: True / False Questions (2.5 marks/ question) 1. An aged trial balance of accounts receivable may provide evidence on the adequacy of the allowance for uncollectible accounts 2. Confirmation of accounts receivable by direct communication with the debtor tests the existence of accounts receivable. 3. The examination of warehouse receipts is sufficient verification of a material amount of goods stored in public warehouses. 4. The receiving department should accept only goods for which there is an approved...
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