Questions from Auditing and Assurance

Q: What can an auditor find using net worth analysis? Expenditure analysis

What can an auditor find using net worth analysis? Expenditure analysis?

Q: You are using computer audit software to prepare accounts receivable confirmations during

You are using computer audit software to prepare accounts receivable confirmations during the annual audit of the Eastern Sunrise Services Club. The company has the following data files: Master file—d...

Q: Your firm has audited the Rock Island Quarry Company for several years

Your firm has audited the Rock Island Quarry Company for several years. Rock Island’s main revenue comes from selling crushed rock to construction companies from several quarries owned by the company...

Q: What is the basic sequence of activities in the cash collection process

What is the basic sequence of activities in the cash collection process?

Q: You are the director of internal auditing of a large municipal hospital

You are the director of internal auditing of a large municipal hospital. You receive monthly financial reports prepared by the accounting department, and your review of them has shown that total accou...

Q: The study and evaluation of management risk mitigation control is not easy

The study and evaluation of management risk mitigation control is not easy. First, auditors must determine the risks and the controls subject to audit. Then they must find a standard by which performa...

Q: The following narrative description of a company’s cash receipts and billing system

The following narrative description of a company’s cash receipts and billing system is in the auditors’ audit files: Rural Building Supplies Inc. is a single-store retailer that sells a variety of too...

Q: The following four questions are taken from an internal control questionnaire.

The following four questions are taken from an internal control questionnaire. For each question, state (a) one test of controls procedure you could use to find out whether the control technique was r...

Q: The following article was published in Newsday on February 9, 2009

The following article was published in Newsday on February 9, 2009: Call for Probe of Ticket Sales Bruce Springsteen fans were victims of a “classic bait and switch” scam by the nation’s largest conc...

Q: For this exercise, your client, Bright IDEAs Inc., has

For this exercise, your client, Bright IDEAs Inc., has provided you with data for two related files, a listing of sales invoices, and a listing of customers with credit limits. To test whether credit...