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C weak and the individuals receiving the confirmation

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C. weak and the individuals receiving the confirmation requests are Unlikely togive them adequate considerationD. strong and the individuals receiving the confirmation requests are likely togive them adequate consideration111. In the confirmation of accounts receivable, the auditor would most likelyA.request confirmation of a sample of the inactive accountsB.seek to obtain positive confirmations for at least 50% of the total amount ofthe receivablesC.require confirmation of all receivables from government agenciesD.require that confirmation requests be sent a Month before year-end112.An auditor would perform alternative procedures to substantiate the existence ofaccounts receivable whenA.no reply to a positive confirmation request is receivedB.no reply to a negative confirmation request is receivedC.collectability of the receivables is doubtfulD.pledging of the receivables is probable113.The auditors may use positive' and/or negative forms of confirmation requests foraccounts receivable. An auditor most likely will useA.the positive form to confirm all balances, regardless of sizeB.a combination of the two forms, with the positive form used for large balancesand the negative form for small balancesC.a combination of the two forms, with the positive form used for tradereceivables and the negative form for other receivablesD.the positive form when the control structure related to receivables aresatisfactory, and the negative form when controls are unsatisfactory114.Which of the following statements is correct concerning the use of negativeconfirmation requests?A.Unreturned negative confirmation requests rarely provide significant explicitevidence.B.Negative confirmation requests are effective when defection risk is low.C.Unreturnednegativeconfirmationrequestsindicatethatalternativeprocedures are necessary.D.Negative confirmation requests are effective when understatements ofaccount balances are suspected.115.Which of the following might be detected by sales cutoff tests?A.Understated receivablesDownloaded by Monique Naluz ([email protected])lOMoARcPSD|3131955
B.Overstated salesC.KitingD.Misappropriated inventory116. An auditor's purpose in reviewing credit ratings of customers with delinquentaccounts receivable most likely is to obtain evidence concerning management'sassertions aboutA. valuation or allocationB.presentation and disclosureC.existence or occurrenceD.rights and obligations117.In auditing accounts receivable, which of the following questions would add valueto an audit?A.Are accounts receivable pledged?B.Are customers satisfied with your billing procedures?C.Are any accounts receivable due from related parties?D.Is there a separation of duties between the recording of cash receipts and thehandling of cash?

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Term
Winter
Professor
Mr. Josh FLores
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