Questions from Auditing and Assurance

Q: A good fraud prevention program should address employees’ motivation to steal from

A good fraud prevention program should address employees’ motivation to steal from the company. The best method for doing this is to a. Establish employee assistance programs. b. Require a fidelity bo...

Q: What specific control procedures (in addition to separation of duties and

What specific control procedures (in addition to separation of duties and responsibilities) should be in place and operating in internal controls governing revenue recognition?

Q: What is a walkthrough of a sales transaction? How can the

What is a walkthrough of a sales transaction? How can the walkthrough work complement the use of an internal control questionnaire?

Q: What is dual-direction test of controls sampling in the revenue

What is dual-direction test of controls sampling in the revenue and collection cycle?

Q: Why is it important to emphasize the existence assertion when auditing accounts

Why is it important to emphasize the existence assertion when auditing accounts receivable?

Q: Auditors sometimes use comparisons of ratios as audit evidence. An unexplained

Auditors sometimes use comparisons of ratios as audit evidence. An unexplained decrease in the ratio of gross profit to sales may suggest which of the following possibilities? a. Unrecorded purchases....

Q: Based on this information, the auditor is most likely concerned about

Based on this information, the auditor is most likely concerned about a. Unrecorded costs. b. Improper credit approvals. c. Improper sales cutoff. d. Fictitious sales.

Q: Based on this information, the auditor interviewed the sales manager,

Based on this information, the auditor interviewed the sales manager, who stated that the increase in sales without a corresponding increase in cost of goods sold was due to a price increase enacted b...

Q: To conceal a theft involving receivables, a dishonest bookkeeper might charge

To conceal a theft involving receivables, a dishonest bookkeeper might charge which of the following accounts? a. Miscellaneous income. b. Petty cash. c. Miscellaneous expense. d. Sales returns.

Q: A client has a separate sales group for its largest “preferred

A client has a separate sales group for its largest “preferred” customers, a select group of customers who normally make purchases in excess of $250,000 and often have accounts receivable balances in...