5. Scan the sales invoice amount for negative balances.6. Other ________________________________________________AACSB: AnalyticAICPA BB: Critical ThinkingAICPA FN: Risk AnalysisBloom's: ApplicationDifficulty: HardLouwers - Chapter 07 #107108.What procedures should an auditor perform for a positive confirmation that is not returned by the client's customer? Auditors have to perform alternative procedures to ensure existence. These include examining (1) subsequent cash receipts, (2) sales orders, invoices and shipping documents, and (3) correspondence files for past-due accounts. Examining subsequent cash receipts is a particularly effective test because if the customer paid the account, this is strong evidence that the receivable existed. The cash receipt should be traced to the remittance advice and the deposit into cash.AACSB: AnalyticAICPA BB: Critical ThinkingAICPA FN: Risk AnalysisBloom's: ApplicationDifficulty: HardLouwers - Chapter 07 #108Question also found in Study GuideLouwers - Chapter 07
109.The following questions appeared on an internal control questionnaire for sales. Next to each of the questions indicate the related assertion.1. Completeness2. Accuracy3. Accuracy4. Accuracy5. Accuracy6. Occurrence7. Cutoff8. Occurrence9. Completeness10. AccuracyAACSB: AnalyticAICPA BB: Critical ThinkingAICPA FN: Risk AnalysisBloom's: ApplicationDifficulty: HardLouwers - Chapter 07 #109
ch7 SummaryCategory# of QuestionsAACSB: Analytic79AACSB: Communication1AACSB: Reflective Thinking1AICPA BB: Critical Thinking49AICPA BB: Legal32AICPA FN: Reporting1AICPA FN: Research21AICPA FN: Risk Analysis59Bloom's: Application59Bloom's: Comprehension2Bloom's: Knowledge20Difficulty: Easy13Difficulty: Hard20Difficulty: Medium48Louwers - Chapter 07115
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