Questions from Auditing and Assurance

Q: An auditor should perform alternative procedures to substantiate the existence of accounts

An auditor should perform alternative procedures to substantiate the existence of accounts receivable when a. No reply to a positive confirmation request is received. b. No reply to a negative confirm...

Q: In evaluating the adequacy of the allowance for doubtful accounts, an

In evaluating the adequacy of the allowance for doubtful accounts, an auditor most likely reviews the entity’s aging of receivables to support management’s financial statement assertion of a. Existenc...

Q: In a properly designed accounts payable system, a voucher is prepared

In a properly designed accounts payable system, a voucher is prepared after the invoice, purchase order, requisition, and receiving report are verified. The next step in the system is a. Cancelation o...

Q: When goods are received, the receiving clerk should match the goods

When goods are received, the receiving clerk should match the goods with a. The purchase order and the requisition form. b. The vendor invoice and the purchase order. c. The vendor shipping document a...

Q: Internal control is strengthened when the quantity of merchandise ordered is omitted

Internal control is strengthened when the quantity of merchandise ordered is omitted from the copy of the purchase order sent to the a. Department that initiated the requisition. b. Receiving departme...

Q: Which of the following control activities is not usually performed in the

Which of the following control activities is not usually performed in the accounts payable department? a. Matching the vendor’s invoice with the related receiving report. b. Approving vouchers for pay...

Q: In a properly designed purchasing process, the same employee most likely

In a properly designed purchasing process, the same employee most likely would match vendors’ invoices with receiving reports and a. Post the detailed accounts payable records. b. Re compute the calcu...

Q: For effective internal control purposes, which of the following individuals should

For effective internal control purposes, which of the following individuals should be responsible for mailing signed checks? a. Receptionist. b. Treasurer. c. Accounts payable clerk. d. Payroll clerk....

Q: To determine whether accounts payable are complete, an auditor performs a

To determine whether accounts payable are complete, an auditor performs a test to verify that all merchandise received is recorded. The population of documents for this test consists of all a. Vendor...

Q: Which of the following audit procedures is best for identifying unrecorded trade

Which of the following audit procedures is best for identifying unrecorded trade accounts payable? a. Examination of unusual relationships between monthly accounts payable balances and recorded cash p...