Questions from Auditing and Assurance

Q: Describe what is meant by a sampling unit. Explain why the

Describe what is meant by a sampling unit. Explain why the sampling unit for verifying the occurrence of recorded sales differs from the sampling unit for testing for the possibility of omitted sales....

Q: The following misstatements are sometimes found in the sales and collection cycle's

The following misstatements are sometimes found in the sales and collection cycle's account balances: 1. The accounts receivable trial balance total does not equal the amount in the general ledger. 2....

Q: Evaluate the following statement: "In many audits in which accounts

Evaluate the following statement: "In many audits in which accounts receivable is material, the requirement of confirming customer balances is a waste of time and would not be performed by competent a...

Q: The following are audit procedures in the sales and collection cycle:

The following are audit procedures in the sales and collection cycle: 1. Add the columns on the aged trial balance and compare the total with the general ledger. 2. Examine a sample of shipping docume...

Q: What is the purpose of tests of controls? Identify specific accounts

What is the purpose of tests of controls? Identify specific accounts on the financial statements that are affected by performing tests of controls for the acquisition and payment cycle.

Q: The following are the eight balance-related audit objectives, six

The following are the eight balance-related audit objectives, six tests of details of balances for accounts receivable, and seven tests of controls or substantive tests of transactions for the sales a...

Q: Although the planning went well, the actual testing yielded some surprises

Although the planning went well, the actual testing yielded some surprises. When conducting tests of controls over acquisitions and additions to the perpetual inventory, the staff person performing th...

Q: What is the purpose of using nonstatistical sampling for tests of controls

What is the purpose of using nonstatistical sampling for tests of controls and substantive tests of transactions?

Q: You are evaluating audit results for current assets in the audit of

You are evaluating audit results for current assets in the audit of Quicky Plumbing Co. You set the preliminary judgment about materiality for current assets at $15,000 for overstatements and at $22,5...

Q: Distinguish between a test of control and a substantive test of transactions

Distinguish between a test of control and a substantive test of transactions. Give two examples of each.