Questions from Auditing and Assurance

Q: The following sales procedures were encountered during the annual audit of Marvel

The following sales procedures were encountered during the annual audit of Marvel Wholesale Distributing Company: Customer orders are received by the sales order department. A clerk computes the appro...

Q: Explain the causes of an increased or decreased planned detection risk.

Explain the causes of an increased or decreased planned detection risk.

Q: Distinguish between a positive and a negative confirmation and state the circumstances

Distinguish between a positive and a negative confirmation and state the circumstances in which each should be used. Why do CPA firms sometimes use a combination of positive and negative confirmations...

Q: Explain why inherent risk is set for segments rather than for the

Explain why inherent risk is set for segments rather than for the overall audit. What is the effect on the amount of evidence the auditor must accumulate when inherent risk is increased from medium to...

Q: The following questions concern audit risk. Choose the best response.

The following questions concern audit risk. Choose the best response. a. Some account balances, such as those for pensions and leases, are the result of complex calculations. The susceptibility to mat...

Q: What is meant by using bases for setting a preliminary judgment about

What is meant by using bases for setting a preliminary judgment about materiality? How will those bases differ for the audit of a manufacturing company and a government unit such as a school district?...

Q: The following are common audit procedures for tests of sales and cash

The following are common audit procedures for tests of sales and cash receipts: 1. Compare the quantity and description of items on duplicate sales invoices with related shipping documents. 2. Trace r...

Q: State the purpose of footing the total column in the client's accounts

State the purpose of footing the total column in the client's accounts receivable trial balance, tracing individual customer names and amounts to the accounts receivable master file, and tracing the t...

Q: Distinguish between accuracy tests of gross accounts receivable and tests of the

Distinguish between accuracy tests of gross accounts receivable and tests of the realizable value of receivables.

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

The following are audit procedures from different transaction cycles: 1. Use audit software to foot and cross-foot the cash disbursements journal and trace the balance to the general ledger. 2. Select...