A. Occurrence. B. Completeness. C. Accuracy. D. Cut-off. 10. Which of the following procedures is not used in tests of controls over purchases? A. Examining payment vouchers and supporting documents for authorisation. B. Reviewing evidence of the accounting for numerical sequence of receiving reports. C. Re-performing calculations on supporting documentation that the client is supposed to have chec D. Confirming inventory held in public warehouses. 9 1. After performing a preliminary assessment of controls in the revenue area, the auditor has conclud effective controls to ensure completeness of revenue; however, all other revenue areas are well controlle assessment, which of the following courses of action should the auditor take? A. Perform substantive testing to provide evidence on the completeness of revenue. B. Adopt a predominantly substantive approach to the entire audit. C. Perform extensive tests of control to provide evidence on the completeness of revenue. D. Rely on controls over all other aspects of revenue to compensate for the control weakness. 2. Which of the following tests is a substantive test that provides evidence in respect of the occurren A. Vouching expenses to supplier invoices. B. Checking additions on invoices. C. Checking an expense has been posted to an appropriate account. D. Ensuring an expense payment has been authorised by an appropriate official. 3. Which of the following audit procedures is a substantive test of the accuracy assertion in respect o A. Vouching reconciling items on the bank reconciliation to supporting documentation. B. Obtaining a bank confirmation certificate. C. Reviewing the minutes of a board of directors’meeting for evidence of new bank accounts. D. Ensuring the bank reconciliation has been authorised by an appropriate official.
4. Which of the following tests is directed towards the management assertion of completeness of sal A. Checking mathematical accuracy of invoices. B. Vouching sales recorded to invoices held. C. Tracing shipping documents to invoices and sales recorded. D. Vouching invoices to shipping documents. 5. The accuracy, valuation and allocation assertion of inventory is of key interest to the auditor becau A. the valuation of inventory is usually complex. B. inventory is more likely to be understated than overstated. C. it is difficult to obtain evidence for this assertion. D. All given answers are correct. 6. Which of the following procedures is likely to be performed for all audits of accounts payable? A. Confirmation of accounts payable. B. Vouching accounts payable to remittance advices. C. Tracing cash payments in the subsequent period to accounts payable. D. Tracing cash payments immediately before year-end to accounts payable. 7. Which of the following procedures is a test of the accuracy, valuation and allocation of property, pl A. Inspecting title deeds.
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