Questions from Auditing and Assurance

Q: List several audit procedures that the auditor can use to determine whether

List several audit procedures that the auditor can use to determine whether all cash received was recorded.

Q: State the four-step approach to designing tests of controls and

State the four-step approach to designing tests of controls and substantive tests of transactions.

Q: State the three categories of factors that affect acceptable audit risk and

State the three categories of factors that affect acceptable audit risk and list the factors that the auditor can use to indicate the degree to which each category exists.

Q: Why is it desirable to design tests of details of balances before

Why is it desirable to design tests of details of balances before performing tests of controls and substantive tests of transactions? State the assumptions that the auditor must make in doing so. What...

Q: Assume a company with the following balance sheet accounts: /

Assume a company with the following balance sheet accounts: You are concerned only about overstatements of owner's equity. Set tolerable misstatement for the three relevant accounts such that the prel...

Q: The auditor's risk assessment procedures identified several risks that the auditor deems

The auditor's risk assessment procedures identified several risks that the auditor deems to be significant risks. Several internal controls exist that are designed to mitigate the risks identified. De...

Q: List the most important duties that should be segregated in the sales

List the most important duties that should be segregated in the sales and collection cycle. Explain why it is desirable that each duty be segregated.

Q: State three types of differences that might be observed in the confirmation

State three types of differences that might be observed in the confirmation of accounts receivable that do not constitute misstatements. For each, state an audit procedure that will verify the differe...

Q: You have been assigned to the confirmation of aged accounts receivable for

You have been assigned to the confirmation of aged accounts receivable for the Blank Paper Company audit. You have tested the aged trial balance and selected the accounts for confirming. Before the co...

Q: What audit procedures are most likely to be used to verify accounts

What audit procedures are most likely to be used to verify accounts receivable written off as uncollectible? State the purpose of each of these procedures.