Questions from Auditing and Assurance

Q: In the case of Bill Often, Bill Early, what information

In the case of Bill Often, Bill Early, what information might have been obtained from inquiries? From tests of controls? From observations? From confirmations?

Q: What is the basic sequence of activities and accounting in a revenue

What is the basic sequence of activities and accounting in a revenue and collection cycle?

Q: What is check kiting? How might auditors detect kiting?

What is check kiting? How might auditors detect kiting?

Q: Suppose that you selected a sample of customers’ accounts receivable and wanted

Suppose that you selected a sample of customers’ accounts receivable and wanted to find supporting evidence for the entries in the accounts. Where would you go to vouch the debit entries? What would y...

Q: During an audit of cash, the auditor is most concerned with

During an audit of cash, the auditor is most concerned with the management assertion of a. Existence. b. Rights and obligations. c. Valuation or allocation. d. Occurrence.

Q: Why do auditors focus on revenue as a significant account and the

Why do auditors focus on revenue as a significant account and the occurrence of revenue as a relevant assertion in the revenue cycle?

Q: Why is inherent risk for the existence assertion for accounts receivable often

Why is inherent risk for the existence assertion for accounts receivable often set higher than inherent risk for the completeness assertion?

Q: Why do you think companies use revenue recognition as a primary means

Why do you think companies use revenue recognition as a primary means for inflating profits?

Q: Which three events should generally have occurred prior to the recognition of

Which three events should generally have occurred prior to the recognition of sales revenue?

Q: What are the defining characteristics of employee fraud? Embezzlement?

What are the defining characteristics of employee fraud? Embezzlement?