Questions from Auditing and Assurance

Q: In the case of The Taxman Always Rings Twice, what information

In the case of The Taxman Always Rings Twice, what information could have been obtained from confirmations directed to the real population of delinquent accounts?

Q: Tests of controls in a GAAS audit are required for a

Tests of controls in a GAAS audit are required for a. Obtaining evidence about the financial statement assertions. b. Accomplishing control over the occurrence of recorded transactions. c. Applying an...

Q: An audit team is auditing sales transactions. One step is to

An audit team is auditing sales transactions. One step is to vouch a sample of debit entries from the accounts receivable subsidiary ledger back to the supporting sales invoices. The purpose of this a...

Q: What are the five components of management’s internal control?

What are the five components of management’s internal control?

Q: The revenue cycle of a company generally includes which accounts?

The revenue cycle of a company generally includes which accounts? a. Inventory, accounts payable, and general expenses. b. Inventory, general expenses, and payroll. c. Cash, accounts receivable, and s...

Q: With reference to the case of Thank Goodness It’s Friday, what

With reference to the case of Thank Goodness It’s Friday, what contribution could an understanding of the business and the management reporting system have made to discovery of the open cash receipts...

Q: Which of the following responses to an accounts receivable confirmation at December

Which of the following responses to an accounts receivable confirmation at December 31 would cause an audit team the most concern? a. “This amount was paid on December 30.” b. “We received this shipme...

Q: Which of the following is an internal control activity that could prevent

Which of the following is an internal control activity that could prevent a paid disbursement voucher from being presented for payment a second time? a. Vouchers should be prepared by individuals who...

Q: When completing the audit of internal controls for a public company,

When completing the audit of internal controls for a public company, the PCAOB requires auditors to audit internal controls over a. Operations. b. Compliance with regulations. c. Financial reporting....

Q: Audit documentation often includes a client-prepared, aged trial balance

Audit documentation often includes a client-prepared, aged trial balance of accounts receivable as of the balance sheet date. The audit team uses this aging primarily to a. Evaluate internal control o...