Questions from Auditing and Assurance

Q: Explain how prenumbered shipping documents and sales invoices can be useful controls

Explain how prenumbered shipping documents and sales invoices can be useful controls for preventing misstatements in sales.

Q: In Part I of the case, you performed preliminary analytical procedures

In Part I of the case, you performed preliminary analytical procedures for Pinnacle. The purpose of Part II is to identify factors influencing risks and the relationship of risks to audit evidence. Du...

Q: The following are partial descriptions of internal controls for companies engaged in

The following are partial descriptions of internal controls for companies engaged in the manufacturing business: 1. When Mr. Clark orders materials, he sends a duplicate purchase order to the receivin...

Q: During the prior-year audits of McKimmon Inc., a private

During the prior-year audits of McKimmon Inc., a private company, the auditor did tests of controls for all relevant financial statement assertions. Some of the related controls are manual while other...

Q: Anthony, CPA, prepared the flowchart (given below) which

Anthony, CPA, prepared the flowchart (given below) which portrays the raw materials purchasing function of one of Anthony's clients, Medium-Sized Manufacturing Company, from the preparation of initial...

Q: What is the auditor's responsibility for obtaining an understanding of internal control

What is the auditor's responsibility for obtaining an understanding of internal control? How does that responsibility differ for audits of public and nonpublic companies?

Q: List five analytical procedures for the sales and collection cycle. For

List five analytical procedures for the sales and collection cycle. For each test, describe a misstatement that could be identified.

Q: Describe the three broad objectives management has when designing effective internal control

Describe the three broad objectives management has when designing effective internal control.

Q: For each of the eight types of evidence discussed in Chapter 7

For each of the eight types of evidence discussed in Chapter 7, identify whether it is applicable for risk assessment procedures, tests of controls, substantive tests of transactions, analytical proce...

Q: What is meant by setting a preliminary judgment about materiality? Identify

What is meant by setting a preliminary judgment about materiality? Identify the most important factors affecting the preliminary judgment.