Questions from Auditing and Assurance

Q: Explain why you agree or disagree with the following statement: "

Explain why you agree or disagree with the following statement: "In most audits, it is more important to test carefully the cutoff for sales than for cash receipts." Describe how you perform each type...

Q: Explain why the analysis of differences is important in the confirmation of

Explain why the analysis of differences is important in the confirmation of accounts receivable, even if the misstatements in the sample are not material.

Q: State what is meant by a representative sample and explain its importance

State what is meant by a representative sample and explain its importance in sampling audit populations.

Q: For each of the following, give an example of a physical

For each of the following, give an example of a physical control the client can use to protect the asset or record: 1. Petty cash 2. Cash received by retail clerks 3. Accounts receivable records 4....

Q: Frank James, a highly competent employee of Brinkwater Sales Corporation,

Frank James, a highly competent employee of Brinkwater Sales Corporation, had been responsible for accounting-related matters for two decades. His devotion to the firm and his duties had always been e...

Q: In the confirmation of accounts receivable for the Reliable Service Company,

In the confirmation of accounts receivable for the Reliable Service Company, 85 positive and no negative confirmations were mailed to customers. This represents 35% of the dollar balance of the total...

Q: You are auditing the sales and collection cycle for the Smalltown Regional

You are auditing the sales and collection cycle for the Smalltown Regional Hospital, a small not-for-profit hospital. The hospital has a reputation for excellent medical services and deficient record...

Q: BestSellers.com sells fiction and nonfiction books to customers through the

BestSellers.com sells fiction and nonfiction books to customers through the company's Web site. Customers place orders for books via the Web site by providing their name, address, credit card number,...

Q: For this problem use the Metaphor-Trans-All file in

For this problem use the Metaphor-Trans-All file in ACL Demo, which is a file of outstanding sales invoices (each row represents an invoice transaction). The suggested command or other source of infor...

Q: Distinguish among tests of details of balances, tests of controls,

Distinguish among tests of details of balances, tests of controls, and substantive tests of transactions for the sales and collection cycle. Explain how the tests of controls and substantive tests of...