Questions from Auditing and Assurance

Q: Explain the purpose of footing and cross-footing the sales journal

Explain the purpose of footing and cross-footing the sales journal and tracing the totals to the general ledger.

Q: Describe why auditors generally evaluate entity-level controls before evaluating transaction

Describe why auditors generally evaluate entity-level controls before evaluating transaction-level controls.

Q: Explain what is meant by the term acceptable audit risk. What

Explain what is meant by the term acceptable audit risk. What is its relevance to evidence accumulation?

Q: The following internal controls were tested in prior audits. Evaluate each

The following internal controls were tested in prior audits. Evaluate each internal control independently and determine which controls must be tested in the current year's audit of the December 31, 20...

Q: In Chapter 15, one of the points brought out was the

In Chapter 15, one of the points brought out was the need to obtain a representative sample of the population. How can this concept be reconciled with the statement in this chapter that the emphasis s...

Q: The following are independent situations for which you will recommend an appropriate

The following are independent situations for which you will recommend an appropriate audit report on internal control over financial reporting as required by PCAOB auditing standards: 1. The auditor i...

Q: The following is the description of sales and cash receipts for the

The following is the description of sales and cash receipts for the Lady's Fashion Fair, a retail store dealing in expensive women's clothing. Sales are for cash or credit, using the store's own billi...

Q: Explain what is meant by a proof of cash receipts and state

Explain what is meant by a proof of cash receipts and state its purpose.

Q: Discuss whether email responses and oral responses are confirmations. How can

Discuss whether email responses and oral responses are confirmations. How can an auditor verify the addresses for confirmations sent by mail, and confirmations sent electronically?

Q: Explain the relationship between acceptable audit risk and the legal liability of

Explain the relationship between acceptable audit risk and the legal liability of auditors.