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 special arrangements (e.g., restrictions on cash).
4. Comparison of gross profit percentage by product line with previous years and industry data.
5. Observe that check received in the mailroom are deposited daily by authorized personnel.
6. Recalculate depreciation expense for the 12 months ended 12/31/2019.
7. Evaluate the reasonableness of management’s estimate for uncollectible accounts receivables.
8. Review monthly bank reconciliations for indication of independent review by supervisor.
9. Compare prices and terms per a sample of sales invoices with authorized price list and terms of trade.
10. Select a sample of shipping documents and agree to associated sales invoices and sales journal.
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For each of the following audit procedures listed below perform
the following: Indicate the type of...
II. Classify each of the following according to type of audit evidence: A. Analytical procedures E....
II. Classify each of the following according to type of audit evidence: A. Analytical procedures E. Observation B. Confirmation F. Inspection of Assets ( i.e. Physical Examination) c. Examination of Documents G. Recalculation D. Inquiry Reperformance I. Scanning Items 1. Cheet Check the extensions (multiplications) on sales invoices. 2. The auditor tests interest expense by developing an overall reasonableness test rather than redoing all the bond amortization schedules. (Don't use G, recalculation) Vouch sales invoices to related shipping documents to...
For each of the following specific audit procedures, indicate the type of audit evidence it is...
For each of the following specific audit procedures, indicate the type of audit evidence it is gathering: (1) Inspection of records or documents, (2) inspection of tangible assets (3) observation, (4) inquiry, (5) confirmation, (6) recalculationreperformance (8) analytical procedures, and (9) scanning. The audit evidences can be used more than once a Discussing the recording of sales discounts in the fourth quarter with the accounts receivable manager b Examining sales invoices for supporting customer order and shipping documents c Reviewing...
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...
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...
Requirement a. Indicate whether each procedure is a test of control, substantive test of transactions, substantive...
Requirement a. Indicate whether each procedure is a test of control, substantive test of transactions, substantive analytical procedure, or a test of details of balances. Type of Test Procedure Discuss the duties of the cash disbursements clerk with him and observe whether 1. he has responsibility for handling cash or preparing the bank reconciliation. Examine the internal auditor's initials on monthly bank reconciliations as an 2. indication of whether they have been reviewed. Account for a sequence of checks 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...
Attached are examples of audit procedures performed by the auditor. REQUIRED: For each of the audit...
Attached are examples of audit procedures performed by the auditor. REQUIRED: For each of the audit procedures attached, indicate the type of audit evidence being obtained by the auditor. Choose your answer from the list below, selecting the best choice for the procedure TYPES OF AUDIT EVIDENCE Inspection of Documents--Tracing 2) Inspection of Documents--Vouching 3) Inspection of Documents-Scanning 4) Physical Inspection 5) Observation 6) Inquiry 7) Confirmation 8) Recalculation C9) Reperformance 10) Analytical Procedures EXAMPLES OF AUDIT PROCEDURES PERFORMED BY...
Following are the four assertions about account balances that can be applied to the audit of...
Following are the four assertions about account balances that can be applied to the audit of a company’s PP&E, including assets the company has constructed itself: existence, rights and obligations, completeness, and valuation and allocation. Required: For each of the following substantive procedures, (1) cite one assertion most closely related to the evidence the procedure will produce (the primary assertion) and (2) when appropriate, cite one or more other assertions that also are related to the evidence the procedure will...
For each audit procedure, select the appropriate audit objective. Objective Procedure 1. Trace receiving reports to...
For each audit procedure, select the appropriate audit objective. Objective Procedure 1. Trace receiving reports to related invoice and entry in purchases journal to determine that existing purchases are recorded. 2. Examine sales invoices selected from the sales journal to determine if recorded on the correct dates. 3. Verify recorded fixed asset additions by physically examining the equipment. 4. Examine the last five sales invoices recorded in the sales journal to determine they are recorded in the proper period. 5....
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'...
II. Classify each of the following according to type of audit evidence: A. Analytical procedures E. Observation B. Confirmation F. Inspection of Assets ( i.e. Physical Examination) c. Examination of Documents G. Recalculation D. Inquiry Reperformance I. Scanning Items 1. Cheet Check the extensions (multiplications) on sales invoices. 2. The auditor tests interest expense by developing an overall reasonableness test rather than redoing all the bond amortization schedules. (Don't use G, recalculation) Vouch sales invoices to related shipping documents to...
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 a. Indicate whether each procedure is a test of control, substantive test of transactions, substantive analytical procedure, or a test of details of balances. Type of Test Procedure Discuss the duties of the cash disbursements clerk with him and observe whether 1. he has responsibility for handling cash or preparing the bank reconciliation. Examine the internal auditor's initials on monthly bank reconciliations as an 2. indication of whether they have been reviewed. Account for a sequence of checks in...
Attached are examples of audit procedures performed by the auditor. REQUIRED: For each of the audit procedures attached, indicate the type of audit evidence being obtained by the auditor. Choose your answer from the list below, selecting the best choice for the procedure TYPES OF AUDIT EVIDENCE Inspection of Documents--Tracing 2) Inspection of Documents--Vouching 3) Inspection of Documents-Scanning 4) Physical Inspection 5) Observation 6) Inquiry 7) Confirmation 8) Recalculation C9) Reperformance 10) Analytical Procedures EXAMPLES OF AUDIT PROCEDURES PERFORMED BY...
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'...
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