Questions from Auditing and Assurance

Q: What differences should auditors expect to find in supporting evidence for accrued

What differences should auditors expect to find in supporting evidence for accrued liabilities as contrasted with accounts payable?

Q: Assume that a highly placed employee has stolen company assets and is

Assume that a highly placed employee has stolen company assets and is now planning to conceal the fraud by failing to make an accounting entry for a large transaction. Would the omission probably be f...

Q: Suggest two reasons why the adjustments proposed by independent auditors more often

Suggest two reasons why the adjustments proposed by independent auditors more often than not call for reducing recorded earnings.

Q: When performing a dual-purpose test, how does the auditor

When performing a dual-purpose test, how does the auditor arrive at the required sample size?

Q: Compare the auditors’ approach to the verification of liabilities with their approach

Compare the auditors’ approach to the verification of liabilities with their approach to the verification of assets.

Q: The auditors usually find in the client’s possession documentary evidence, such

The auditors usually find in the client’s possession documentary evidence, such as invoices, supporting both accounts receivable and accounts payable. Is there any difference in the quality of such ev...

Q: Describe briefly an internal control activity that would prevent a paid disbursement

Describe briefly an internal control activity that would prevent a paid disbursement voucher from being presented for payment a second time.

Q: The operating procedures of a well-managed accounts payable department will

The operating procedures of a well-managed accounts payable department will provide for the verification of several specific points before a vendor’s invoice is recorded as an approved liability. What...

Q: List the major responsibilities of an accounts payable department.

List the major responsibilities of an accounts payable department.

Q: What does the trust indenture used by a corporation in creating long

What does the trust indenture used by a corporation in creating long-term bonded indebtedness have to do with the payment of dividends on common stock?