42. Controls over approving credit relate to the: A.Completeness assertions.B.Rights and obligation.C.Valuation or allocation.D.Occurrence. 43. To determine whether internal control operates effectively to minimize errors of failureto bill a customer for a shipment, the auditor would select a sample of transactions fromthe population represented by the 44. To verify that all sales transactions have been recorded, a test of transactions should becompleted on a representative sample drawn from 45. To gather audit evidence about the proper credit approval of sales, the auditor wouldselect sample of documents from the population represented by the
46. The purpose of tests of controls over sipping is to determine whether A.Billed goods have been shipped.B.Shipments are billed.C.Shipping department personnel are competent.D.Credit is approved before goods are shipped. 47. The purpose of the tests of controls over billing is to determine whether 48. An effective procedure to test for unbilled shipments is to trace from the 49. To determine whether refunds granted to customers were properly approved, the auditorshould trace accounts receivable entries to: 51. The following are four steps that an auditor undertakes in assessing control risk: A)Determine what control procedures are used by the entitiesB)Identify the system’s control objectivesC)Design tests of controlsD)Consider the potential errors or irregularities that could result
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- Spring '14