Questions from Auditing and Assurance

Q: Distinguish between a sampling error and a nonsampling error. How

Distinguish between a sampling error and a nonsampling error. How can each be reduced?

Q: Under what circumstances is it acceptable to perform tests of controls and

Under what circumstances is it acceptable to perform tests of controls and substantive tests of transactions for sales and cash receipts at an interim date?

Q: State one test of control and one substantive test of transactions that

State one test of control and one substantive test of transactions that the auditor can use to verify the following sales transaction-related audit objective: Recorded sales are stated at the proper a...

Q: Diane Smith, CPA, performed tests of controls and substantive tests

Diane Smith, CPA, performed tests of controls and substantive tests of transactions for sales for the month of March in an audit of the financial statements for the year ended December 31, 2011. Based...

Q: The following questions deal with internal controls in the sales and collection

The following questions deal with internal controls in the sales and collection cycle. Choose the best response. a. The accounting system will not post a sales transaction to the sales journal without...

Q: For each of the following types of misstatements (parts a through

For each of the following types of misstatements (parts a through d), select the control that should have prevented the misstatement: a. A manufacturing company received a substantial sales return in...

Q: In evaluating the audit approach for McClain for the current year's audit

In evaluating the audit approach for McClain for the current year's audit, Sessions believed that a substantive approach was really only appropriate for the audits of small nonpublic companies. In his...

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

The following are audit procedures from different transaction cycles: 1. Examine duplicate copy of shipping documents for evidence that quantities were verified before shipment. 2. Select a sample of...

Q: The following questions deal with materiality. Choose the best response.

The following questions deal with materiality. Choose the best response. a. Which one of the following statements is correct concerning the concept of materiality? (1) Materiality is determined by re...

Q: Describe how the nature of evidence used to evaluate the control environment

Describe how the nature of evidence used to evaluate the control environment differs from the nature of evidence used to evaluate control activities.