Which accounts are of interest to an auditor?
Which accounts are of interest to an auditor?
Homework Answers
An auditor is a person authorized to review and verify the accuracy of financial records and ensure that companies comply with tax laws. They protect businesses from fraud, point out discrepancies in accounting methods and, on occasion, work on a consultancy basis, helping organizations to spot ways to boost operational efficiency. Auditors work in various capacities within different industries.
- The main duty of an auditor is to determine whether financial statements follow generally accepted accounting principles (GAAP).
- The Securities and Exchange Commission (SEC) requires all public companies to conduct regular reviews by external auditors, in compliance with official auditing procedures.
- There are several different types of auditors, including those hired to work in-house for companies and those who work for an outside audit firm.
- The final judgment of an audit report can be either qualified or unqualified.
The aged accounts receivable report is utilized by the auditor to accomplish which of the following?...
The aged accounts receivable report is utilized by the auditor to accomplish which of the following? a. Select the type of confirmations that will be sent to banks. O b. Assess the adequacy of the allowance for doubtful accounts. O c Encourage the client to collect on receivables that are long past due. d. Identify debits in the receivables balance that should be reclassified to payables.
If the auditor is auditing an accounts receivable file, the auditor will want to make sure...
If the auditor is auditing an accounts receivable file, the auditor will want to make sure the receivable file matched the_______. A. general ledger as of the date of the test. B. trial balance as of the date of the test. C. investing section of the statement of cash flows as of the date of the test. D. general ledger as of any date before the test.
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.
Why should the company’s accounts be audited by an external auditor?
Why should the company’s accounts be audited by an external auditor?
The accounts of a corporation show that, on average, accounts receivable are $ 275.47. An auditor...
The accounts of a corporation show that, on average, accounts receivable are $ 275.47. An auditor checked a random sample of 16 of these accounts. The sample mean was $ 270.93 and the sample standard deviation was $ 28.53. Assume that the population distribution is normal. Test the null hypothesis that the population mean is $ 275.47, against a two-sided alternative. Answer the following, rounding your answers to three decimal places where appropriate. (a) What is the test statistic? (b)...
Question 4: (25 marks) There are different types of auditor opinions, one of which they must...
Question 4: (25 marks) There are different types of auditor opinions, one of which they must express in their audit report once they will complete their audit process. List and briefly discuss the different types of auditor opinions. (15 marks) Identify that under following cases what types of opinions can be expressed by the auditor? Support your answer with discussion. (10 marks) Case A The auditor noticed that inventory of Alpha Company faces a write-down due...
In which of the following circumstances does the internal auditor potentially lack objectivity? A revenue accounting...
In which of the following circumstances does the internal auditor potentially lack objectivity? A revenue accounting employee assists an internal auditor in verifying the physical inventory of widgets. An internal auditor discusses a significant issue with the Division Manager to whom the auditee reports prior to drafting the audit report. An Accounts Payable supervisor performs a review of internal controls over the Accounts Payable function, three weeks after transferring to the internal audit department. An internal auditor recommends standards of...
An aged trial balance of accounts receivable is normally used by the auditor to evaluate the...
An aged trial balance of accounts receivable is normally used by the auditor to evaluate the adequacy of the allowance for doubtful accounts involving accounts receivable. The company’s credit terms are 2% 10, net 30. The aged trial balance was made on December 31, year 1. The auditor reviews the work on January 30, year 2. An outstanding accounts receivable on December 31, year 1 was for a sale invoiced on November 22, year 1 would...
In examining the credit accounts of a department store, an auditor would like to estimate the tru...
In examining the credit accounts of a department store, an auditor would like to estimate the true mean account error (book value – audited value). To do so, the auditor selected a random sample of 50 accounts and found the mean account error to be $60 with a standard deviation of $30. a. Construct a 95% confidence interval for the population mean account error. What conclusion can be made from this confidence interval? b. How large a sample is actually...
help！ In examining the credit accounts of a department store, an auditor would like to estimate...
help！ In examining the credit accounts of a department store, an auditor would like to estimate the true mean account error (book value – audited value). To do so, the auditor selected a random sample of 50 accounts and found the mean account error to be $60 with a standard deviation of $30. a.Construct a 95% confidence interval for the population mean account error. What conclusion can be made from this confidence interval? b.How large a sample is actually needed...
The aged accounts receivable report is utilized by the auditor to accomplish which of the following? a. Select the type of confirmations that will be sent to banks. O b. Assess the adequacy of the allowance for doubtful accounts. O c Encourage the client to collect on receivables that are long past due. d. Identify debits in the receivables balance that should be reclassified to payables.
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