Questions from Auditing and Assurance

Q: The reliability factor table provides factors for as many as three computations

The reliability factor table provides factors for as many as three computations when planning and evaluating the results of a monetary unit sample. Describe in general terms each of these computations...

Q: In a monetary unit sample with a sampling interval of $20

In a monetary unit sample with a sampling interval of $20,000, an auditor discovered that a selected account receivable with a recorded amount of $10,000 had an audit amount of $2,000. Calculate the p...

Q: Chris York, CPA, is considering the use of monetary unit

Chris York, CPA, is considering the use of monetary unit sampling in examining the sales transactions and accounts receivable of Carter Wholesale Company. Required: a. How does the definition of the...

Q: A well-financed audit client of your CPA firm invests large

A well-financed audit client of your CPA firm invests large amounts in marketable securities. As part of its internal control, the company uses a monthly report of securities transactions. The report...

Q: The auditors of Dunbar Electronics want to limit the risk of material

The auditors of Dunbar Electronics want to limit the risk of material misstatement in the valuation of inventories to 2 percent. They believe that there exists a 50 percent risk that a material missta...

Q: The auditors wish to test the valuation of accounts receivable in the

The auditors wish to test the valuation of accounts receivable in the audit of Desert Enterprises of Bullhead City. The client has $500,000 of total recorded receivables, composed of 850 accounts. The...

Q: A summary of the controls for the revenue and cash receipts cycle

A summary of the controls for the revenue and cash receipts cycle of Keystone Computers & Networks, Inc., appears in this appendix. a. For the following three controls over sales, indicate one typ...

Q: As indicated on the control risk assessment working paper Schedule IC-

As indicated on the control risk assessment working paper Schedule IC-20 (its last section prior to the Assessed Level of Control Risk), the auditors identified two weaknesses in internal control over...

Q: As indicated on Schedule IC-15, the auditors decided to

As indicated on Schedule IC-15, the auditors decided to apply audit sampling to three controls for the revenue and cash receipts cycle. Required: a. Describe the characteristic that a control must po...

Q: Reply as to whether you believe the following statements are correct (

Reply as to whether you believe the following statements are correct (C) or incorrect (I) concerning monetary unit sampling. a. The size of a monetary unit sample is not based on the estimated variati...