D One and only one substantive audit procedure that may detect the situation

D one and only one substantive audit procedure that

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) test of control audit procedure.D) One (and only one) substantive audit procedure that may detect the situation described.No credit will be given for generic controls (e.g. policies and procedures; separation of duties without specifics; discuss with management). Be specificStudents may give any of the following
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8 Key1. FALSE2. FALSE3. TRUE4. TRUE5. FALSE6. TRUE7. TRUE8. FALSE9. TRUE10. TRUE11. TRUE12. FALSE13. TRUE14. FALSE15. FALSE16. FALSE17. FALSE18. TRUE19. TRUE20. A21. B22. A23. D24. B25. A26. D27. C28. D29. B30. B31. C32. D33. D34. C35. B36. C
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37. D38. D39. A40. A41. D42. B43. B44. A45. B46. C47. B48. C49. A50. D51. C52. C53. C54. D55. D56. A57. C58. D59. B60. C61. D62. B63. C64. D65. C66. C67. C68. C69. B70. D71. C72. A73. C74. A
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75. D76. D77. B78. C79. C80. C81. D82. C83. D84. A85. C86. B87. C88. A89. B90. C91. D92. A93. A94. B95. C96. C97. B98. C99. A100. C101. B102. C103. B104. A105. D106. A107. receiving department; quantity; quality108. purchase order; vendor's invoice; receiving report109. unmatched receiving reports; payables listing110. System failures; human coding errors111. voucher112. computer transaction; purchase journal
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113. risk; material misstatement114. purchase orders; receiving reports115. Tests of controls116. completeness117. search for unrecorded liabilities118. personnel; supervision; timekeeping; record keeping; payroll distribution119. personnel department120. existence; employment121. payroll register122. 1. C; 2. A; 3. B; 4. A; 5. C; 6. E; 7. A; 8. B123. The emphasis on completeness is rightly placed because companies typically are less concerned about timely recording of expenses and liabilities. Generally, they are more concerned with the timely recording of revenues and assets. For asset accounts, the emphasis therefore is on the existence and rights assertions. Ample evidence is usually available to verify that an asset exists. However, less evidence usually exists for unrecorded liabilities.124. Because of the concern for understatement of liabilities, auditors are more concerned with the completeness and valuation assertions for accounts payable. Auditors emphasize accounts payable that are more likely understated. Therefore, small and zero balances should be included in the sample design. Also, vendors with high activity during the year might be selected.125. To show they have been processed so they cannot be paid again.e. Other _______________________________________________d. Study the attorney's response letter for indication of disputed accounts payable.c. Obtain written client representations on the payables total.b. Audit the confirmations returned for evidence of disputed balances.Valuation or Allocationa. Interview the accounts payable manager for information about disputed accounts payable.f. Other _______________________________________________e. Study the accounts payable trial balance for indications of untimely recording or omission of vendors' invoices.d. Scan the open purchase order file for old orders that might have been received. Trace to the purchases journal.
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  • Spring '11
  • Gripp
  • d., invoice

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