Questions from Auditing and Assurance

Q: Internal controls 1 through 5 were tested in prior audits. Evaluate

Internal controls 1 through 5 were tested in prior audits. Evaluate each internal control independently and determine which controls must be tested in the current year’s audit of the December 31, 2019...

Q: The following are audit procedures from different transaction cycles: 1

The following are audit procedures from different transaction cycles: 1. Trace a sample of shipping documents to entry in the sales journal. 2. Examine a sample of warehouse removal slips for signatur...

Q: The following are audit procedures from different transaction cycles: 1

The following are audit procedures from different transaction cycles: 1. Examine sales invoices for evidence of internal verification of prices, quantities, and extensions. 2. Select items from the cl...

Q: Discuss changes in accounting and business operations over the last decade that

Discuss changes in accounting and business operations over the last decade that have increased the need for independent audits.

Q: Most grocery stores use bar code scanning technologies that interface with cash

Most grocery stores use bar code scanning technologies that interface with cash registers used to process customer purchases. Cashiers use the scanners to read bar code labels attached to each product...

Q: The following are examples of audit procedures: 1. Watch

The following are examples of audit procedures: 1. Watch employees count inventory to determine whether company procedures are being followed. 2. Count a sample of inventory items and record the amoun...

Q: Auditors develop overall audit plans to ensure that they obtain sufficient appropriate

Auditors develop overall audit plans to ensure that they obtain sufficient appropriate audit evidence. The timing and extent of audit procedures auditors use is a matter of professional judgment, whic...

Q: The Maguire Pharmaceutical Company, a drug manufacturer, has the following

The Maguire Pharmaceutical Company, a drug manufacturer, has the following internal controls for billing and recording accounts receivable: 1. An incoming customer’s purchase order is received in the...

Q: McClain Plastics has been an audit client of Belcor, Rich,

McClain Plastics has been an audit client of Belcor, Rich, Smith & Barnes, CPAs (BRS&B), for several years. McClain Plastics was started by Evers McClain, who owns 51 percent of the company’s stock. T...

Q: The information technology (IT) department at Jacobsons, Inc.,

The information technology (IT) department at Jacobsons, Inc., consists of eight employees, including the IT manager, Melinda Cullen. Cullen is responsible for the day-to-day oversight of the IT funct...