Which of the following most likely would be detected by an auditors review of a

Which of the following most likely would be detected

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20. Which of the following most likely would be detected by an auditor's review of a client's sales cutoff? A. Shipments lacking sales invoices and shipping documents.B. Excessive write-offs of accounts receivable.C.Unrecorded sales at year-end.D. Lapping of year-end accounts receivable.AACSB: AnalyticAICPA BB: Critical ThinkingAICPA FN: Risk AnalysisBlooms: ApplyDifficulty: 2 MediumLearning Objective: 07-04 Give examples of substantive procedures in the revenue and collection cycle and relate them to assertions about account balances at the end of the period.Louwers - Chapter 07 #49Source: AICPATopic: Revenue Substantive Testing
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21. Revenues are normally considered to have been earned when AACSB: AnalyticAICPA BB: LegalAICPA FN: ResearchBlooms: RememberDifficulty: 1 EasyLearning Objective: 07-02 Describe the revenue and collection cycle; including typical source documents and control procedures.Louwers - Chapter 07 #55Source: OriginalTopic: Revenue Recognition22. When an audit team traces a sample of shipping documents to the related sales invoice copies, they are trying to find relevant evidence that AACSB: AnalyticAICPA BB: Critical ThinkingAICPA FN: Risk AnalysisBlooms: ApplyDifficulty: 2 MediumLearning Objective: 07-04 Give examples of substantive procedures in the revenue and collection cycle and relate them to assertions about account balances at the end of the period.Louwers - Chapter 07 #77Source: AICPATopic: Revenue Substantive Testing23. The financial records of the Movitz Company show that Mr. Dennis owes $4,100 on an account receivable. An independent audit is being carried out and the auditors send a positive confirmation to Mr. Dennis. What is the most likely reason as to why a positive confirmation rather than a negative confirmation was used here? AACSB: AnalyticAICPA BB: Critical ThinkingAICPA FN: Risk AnalysisBlooms: ApplyDifficulty: 3 HardLearning Objective: 07-04 Give examples of substantive procedures in the revenue and collection cycle and relate them to assertions about account balances at the end of the period.Louwers - Chapter 07 #82Source: OriginalTopic: Revenue Substantive Testing
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24. An internal control questionnaire for evaluating the occurrence objective of revenues would notinclude which of the following questions? A.Is customer credit approved before orders are shipped?B. Are customer statements mailed monthly by the accounts receivable department?C. Are direct confirmations of receivables obtained periodically by the internal auditor?
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  • Fall '11
  • Zebda
  • Revenue, Financial audit

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