Questions from Auditing and Assurance

Q: In verifying accounts payable, it is common to restrict the audit

In verifying accounts payable, it is common to restrict the audit sample to a small portion of the population items, whereas in auditing accrued property taxes, it is common to verify all transactions...

Q: Explain the relationship between tests of the acquisition and payment cycle and

Explain the relationship between tests of the acquisition and payment cycle and tests of inventory. Give specific examples of how these two types of tests affect each other.

Q: You have been engaged for the audit of the Y Company for

You have been engaged for the audit of the Y Company for the year ended December 31, 2011. The Y Company is in the wholesale chemical business and makes all sales at 25% over cost. Following are porti...

Q: List three expense accounts that are tested as part of the acquisition

List three expense accounts that are tested as part of the acquisition and payment cycle or the payroll and personnel cycle. List three expense accounts that are not directly verified as part of the c...

Q: What is meant by the analysis of expense accounts? Explain how

What is meant by the analysis of expense accounts? Explain how expense account analysis relates to the tests of controls and substantive tests of transactions that the auditor has already completed fo...

Q: How will the approach for verifying repair expense differ from that used

How will the approach for verifying repair expense differ from that used to audit depreciation expense? Why will the approach be different?

Q: List the factors that should affect the auditor’s decision whether to analyze

List the factors that should affect the auditor’s decision whether to analyze an account balance. Considering these factors, list four expense accounts that are commonly analyzed in audits.

Q: The following questions concern internal controls in the acquisition and payment cycle

The following questions concern internal controls in the acquisition and payment cycle. Choose the best response. a. Which of the following controls will most likely justify a reduced assessed level o...

Q: The following questions concern analytical procedures in the acquisition and payment cycle

The following questions concern analytical procedures in the acquisition and payment cycle. Choose the best response. a. Which of the following comparisons will be most useful to an auditor in auditin...

Q: For each of the following misstatements in property, plant, and

For each of the following misstatements in property, plant, and equipment accounts, state an internal control that the client can implement to prevent the misstatement from occurring and a substantive...