23)Which of the following factors has a directrelationship with sample size in an attributes sampling application? Tolerable Rate of DeviationExpected Population Deviation RateYes No Yes Yes →No Yes No No
24)Why is the audit team more concerned with controlling the exposure to the risk of overreliance than with the risk of underreliance? The risk of underreliance is not related to the audit team's study and evaluation of internal control. Only the risk of overreliance results in an incorrect audit decision. risk to acceptable levels. The risk of underreliance can be controlled by performing tests of controls during the interim period. →The risk of overreliance can ultimately result in the audit team's failing to reduce audit 25)Which of the following would the auditor consider to be an incompatible operation if the cashier receives remittances? 26)Which of the following is an effective audit procedure that an auditor might use to detect kiting between intercompany banks? →Review the composition of authenticated deposit slips. 27)Immediately upon receipt of cash, a responsible employee should →Prepare a remittance listing. Record the amount in the cash receipts journal. Prepare a deposit slip in triplicate. Update the subsidiary accounts receivable records. 28)Cash receipts from sales on account have been misappropriated. Which of the following acts would conceal this defalcation and be least likely to be detected by an auditor? Overstating the sales journal. Overstating the accounts receivable subsidiary ledger. →Understating the sales journal.
Overstating the accounts receivable control account. 29)During an audit of cash, the auditor is most concerned with the management assertion of →Valuation or allocation. 30)When auditing the revenue and collection cycle, auditors normally select balances to confirm from the →Sales journal.
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- Spring '13
- Balance Sheet, audit team