Questions from Auditing and Assurance

Q: You have identified relevant controls for several assertions within the revenue cycle

You have identified relevant controls for several assertions within the revenue cycle, and you must use IDEA to perform several tests of controls. Required: a. ELM has a policy of using prenumbered c...

Q: When auditing with “fraud awareness,” auditors should especially notice and

When auditing with “fraud awareness,” auditors should especially notice and follow up employee activities under which of these conditions? a. The company always estimates the inventory but never takes...

Q: Upon receipt of customers’ checks in the mail room, a responsible

Upon receipt of customers’ checks in the mail room, a responsible employee should prepare a remittance list that is forwarded to the cashier. A copy of the list should be sent to the a. Internal audit...

Q: Confirmation of individual accounts receivable balances directly with debtors will, of

Confirmation of individual accounts receivable balances directly with debtors will, of itself, normally provide the strongest evidence concerning the a. Collectability of the balances confirmed. b. Ow...

Q: Confirmation of individual accounts receivable balances directly with debtors will, of

Confirmation of individual accounts receivable balances directly with debtors will, of itself, normally provide the strongest evidence concerning the a. Collectability of the balances confirmed. b. Ow...

Q: Why should a list of cash remittances be made and sent to

Why should a list of cash remittances be made and sent to the accounting department? Wouldn’t it be easier to send the cash and checks to the accountants so they can enter the credits to customers’ ac...

Q: When a sample of customer accounts receivable is selected for vouching debits

When a sample of customer accounts receivable is selected for vouching debits, auditors will vouch them to a. Sales invoices with shipping documents and customer sales invoices. b. Records of accounts...

Q: In the audit of accounts receivable, the most important emphasis should

In the audit of accounts receivable, the most important emphasis should be on the a. Completeness assertion. b. Existence assertion. c. Rights and obligations assertion. d. Presentation and disclosure...

Q: When accounts receivable are confirmed at an interim date, auditors need

When accounts receivable are confirmed at an interim date, auditors need not be concerned with a. Obtaining a summary of receivables transactions from the interim date to the year-end date. b. Obtaini...

Q: The negative request form of accounts receivable confirmation is useful particularly when

The negative request form of accounts receivable confirmation is useful particularly when the