AP114 (LO 8) not discovered by an inexperienced staff auditor in the audit of the Parson...
(d) LIST OF AUDIT PROCEDURES PERFORMED FOR INVENTORY Audit Procedure Management Assertion (a) The auditor determined that pledged inventory was identified in a note. (b) The auditor confirmed goods held by the client in a public warehouse. The auditor performed a purchases cutofftest to assure all purchase transactions for the year were included in the balance. The auditor accounted for the numerical sequence of purchase orders. The auditor vouched the recorded payables to receiving documents. (f) The auditor determined that...
s Part 2 Audit Planning and Barr Ad LO 3- 9 3-30 Exhibit 3-2 contains a partial cadit program for substantive tests of accounts receivable. Required: For audit procedures 1-4, identify the primary assertion being tested. thro ne in the materiality Part 2 Audit Planning and Basic Auditing Concepts EXHIBIT 3 - 2 A Partial Audit Program for Substantive Procedures Testing of Accounts Receivable Audit Procedures WP Ref Completed by 1. Obtain the December 31, 2013, aged accounts receivable trial...
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...
14-56 1 During the course of the audit of Nature Sporting Goods, the auditor discovered the following: . The accounts receivable confirmation work revealed one pricing misstatement. The book value of $12,955.68 should be $11,984.00. The total misstatement based on this differ- ence is $14,465, which includes a $972 known misstatement and an unknown projected misstatement of $13,493. Nature Sporting Goods had understated the accrued vacation pay by $13,000. A review of the prior-year documentation indicates the following uncorrected misstatements:...
Check my work For each of the following specific audit procedures, identify the category (assertions about classes of transactions and events or assertions about account balances) and the primary assertion being tested. points eBook a. Sending a written request to the entity's customers requesting that they report the amount owed to the entity. b. Examining large sales invoices for a period of two days before and after year-end to determine if sales are recorded in the proper period. c. Agreeing...
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. Auditors often follow a "cycle" approach to the gathering of evidence. Of the following accounts, which typically would NOT be part of the sales cycle? a. Accounts receivable b. Allowance for doubtful accounts c. Inventory d. Sales returns and allowances e. None of the above 2. The assertion COMPLETENESS involves a. Overstatement. b. Ownership. c. Professional Skepticism. d. Understatement. 3. To be appropriate, evidence should be relevant and reliable. Under...
Audit and Investigation work. Can you please assist me.Thank you B- ASSERTIONS AND AUDIT OBJECTIVES: The following are specific balance related audit objective applied to the audit of accounts receivable (a thu h) and management assertions about account balances (1 thu 4) The list referred to in the specific balance related audit objectives is the list of the accounts receivable from each customer at the balance sheet date. Specific Balance Related Audit Objective a) There are no unrecorded receivables b)...
22. Auditors consider financial statement assertions to identify appropriate audit procedures. For items i through vi, match each assertion with the statement that most closely approximates its meaning. Each statement may be used only once. (Use letters a. – f. below.) Assertion Statement i. Completeness ii. Cutoff iii. Existence and occurrence iv. Presentation and disclosure v. Rights and obligations vi. Valuation a.The company legally owns the assets, and are legally on the line for paying liabilities. b. Accounts receivable and...
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....