Questions from Auditing and Assurance

Q: When verifying debits to the perpetual inventory records of a nonmanufacturing company

When verifying debits to the perpetual inventory records of a nonmanufacturing company, auditors would be most interested in examining a sample of purchase a. Approvals. b. Requisitions. c. Invoices....

Q: You are auditing Martha’s Prison Clothes Inc. as of December 31

You are auditing Martha’s Prison Clothes Inc. as of December 31, 2014. The inventory for orange jumpsuits shows 1,263 suits at $782 for a total of $987,666. When you look at the invo...

Q: A furniture company ordered 84 tables from a supplier. The supplier

A furniture company ordered 84 tables from a supplier. The supplier accidentally sent only 48 tables, but the receiving department at the furniture company accepted the tables. The invoice was eventua...

Q: How do audit procedures for prepaid expenses and accrued liabilities also provide

How do audit procedures for prepaid expenses and accrued liabilities also provide audit evidence about related expense accounts?

Q: In auditing for unrecorded long-term bonds payable, an audit

In auditing for unrecorded long-term bonds payable, an audit team most likely will a. Perform analytical procedures on the bond premium and discount accounts. b. Examine documentation of assets purcha...

Q: Curtis, a maintenance supervisor, submitted maintenance invoices from a phony

Curtis, a maintenance supervisor, submitted maintenance invoices from a phony repair company and received the checks at a post office box. This should have been prevented by a. Comparison of the compa...

Q: An audit team would most likely examine the detail support for charges

An audit team would most likely examine the detail support for charges to which of the following accounts? a. Payroll expense. b. Cost of goods sold. c. Supplies expense. d. Legal expense.

Q: Which of the following accounts would most likely be audited in connection

Which of the following accounts would most likely be audited in connection with a related balance-sheet account? a. Property Tax Expense. b. Payroll Expense. c. Research and Development. d. Legal Expe...

Q: You are conducting an audit of the financial statements of a wholesale

You are conducting an audit of the financial statements of a wholesale cosmetics distributor with an inventory consisting of thousands of individual items. The distributor keeps its inventory in its o...

Q: When auditing account balances of liabilities, auditors are most concerned with

When auditing account balances of liabilities, auditors are most concerned with management’s assertion about a. Existence. b. Rights and obligations. c. Completeness. d. Valuation and allocation.