auditor most likely perform A Prepare a schedule of purchases and payments for

Auditor most likely perform a prepare a schedule of

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auditor most likely perform? A. Prepare a schedule of purchases and payments for these customers.B. Send out negative confirmations on a large sample of these customers.C. Inquire of the sales manager regarding the accounts receivable terms.D. Send out positive confirmations on a large sample of these customers.22 | P a g e
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69.Audit documentation often includes a client-prepared, aged trial balance of accounts receivable as of the balance sheet date. The audit team uses this aging primarily to A. Evaluate internal control over credit sales.B. Test the accuracy of recorded charge sales.C. Estimate credit losses.D. Verify the existence of the recorded receivables.70.Which of the following might be detected by auditors' cutoff review and examination of sales journal entries for several days prior to the balance sheet date? 71.Confirmation of individual accounts receivable balances directly with debtors will, of itself, normally provide the strongest evidence concerning the A. Collectability of the balances confirmed.B. Ownership of the balances confirmed.C. Existence of the balances confirmed.D. Internal control over balances confirmed.23 | P a g e
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72.Which of the following is the best reason for prenumbering in sequence such documents as sales orders, shipping documents, and sales invoices? 73.When a sample of customer accounts receivable is selected for vouching debits, auditors will vouch them to A. Sales invoices with shipping documents.B. Records of accounts receivable write-offs.C. Cash remittance lists and bank depositslips.D. Credit files and reports.74.In the audit of accounts receivable, the most important emphasis should be on the A. Completeness assertion.B. Existence assertion.C. Rights and obligations assertion.D. Presentation and disclosure assertion.24 | P a g e
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75.When accounts receivable are confirmed at an interim date, auditors need not be concerned with A. Obtaining a summary of receivables transactions from the interim date to the year-end date.B. Obtaining a year-end trial balance of receivables, comparing it to the interim trial balance, and obtaining evidence and explanations for large variations.C. Sending negative confirmations to all the customers as of the year-end date.D. Considering the necessity for some additional confirmations as of thebalance sheet date if balances have increased materially.
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  • Fall '11
  • Tiffany
  • Financial audit, invoice, collection cycle

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