Study Guide_ExamII - BUS 129A Study Guide (Mid-term II)...

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BUS 129A Study Guide (Mid-term II) Chapter 9 1. Understand the major sampling techniques. 2. Understand sampling risk, including risk of assessing control risk too low, risk of assessing control risk too high, risk of incorrect rejection and incorrect acceptance. 3. Distinguish between sampling risk and non-sampling risk. 4. Be able to evaluate sampling results. 5. Be familiar with the following variable sampling techniques: Mean per unit, Ratio, Difference Estimation. Chapter 10 1. What is the primary purpose of bank confirmation? Bank reconciliation? Bank cutoff statement? Bank transfer schedule? 2. How do auditors audit each line item on bank reconciliation? 3. What is kiting? How to determine improper transfers? Chapter 11 Revenue and Accounts Receivables 1. Be familiar with the basic supporting documents involved in the Revenue cycle. 2. Understand the audit objectives addressed by the audit procedures related to Accounts Receivable and Revenue. 3. Understand Accounts Receivable Confirmations. 4. Understand sales cutoff problems and the related audit procedures. 5. Understand lapping and the audit procedures used to detect lapping. Chapter 12 Inventory 1. Be familiar with the basic supporting documents involved in the purchase and production cycle. 2. Understand the audit objectives addressed by the audit procedures related to Inventory. 3. Understand the observation of the taking of physical inventory.
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Practice Question Set 1. In assessing sampling risk, the risk of assessing control risk too high and the risk of incorrect acceptance relate to audit A. Effectiveness and efficiency, respectively. B. Efficiency and effectiveness, respectively. C. Both Effectiveness. D. Both Efficiency. 2. The 1000 accounts receivable of GHI Company have a total book value of $50,000. Bob Smith, CPA, has selected and audited a sample of 100 accounts with a total book value of $4,800. Using the mean-per-unit estimation technique, Smith has properly estimated a projected misstatement
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This note was uploaded on 09/08/2010 for the course BUS 129A at San Jose State University .

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Study Guide_ExamII - BUS 129A Study Guide (Mid-term II)...

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