Questions from Auditing and Assurance

Q: If a security or derivative is not marketable, how do the

If a security or derivative is not marketable, how do the auditors typically obtain evidence about the fair value of the instrument?

Q: “If the auditors discover any evidence of employee fraud during their

“If the auditors discover any evidence of employee fraud during their work on cash, they should extend their investigation as far as necessary to develop a complete set of facts, regardless of whether...

Q: It is sometimes said that audit work on cash is facilitated by

It is sometimes said that audit work on cash is facilitated by the existence of two independent records of the client’s cash transactions, which are available for comparison by the auditors. Identify...

Q: Explain how a lockbox system contributes to internal control over cash receipts

Explain how a lockbox system contributes to internal control over cash receipts.

Q: Explain briefly the term systematic selection as used in auditing and indicate

Explain briefly the term systematic selection as used in auditing and indicate the precautions to be taken if a random sample is to be obtained. Is systematic selection applicable to unnumbered docume...

Q: The auditors’ work on cash may include preparing a description of controls

The auditors’ work on cash may include preparing a description of controls and performing tests of controls. Which of these two steps should be performed first? What is the purpose of tests of control...

Q: State one broad general objective of internal control over each of the

State one broad general objective of internal control over each of the following: cash receipts, cash disbursements, and cash balances.

Q: Among the departments of J-R Company are a purchasing department

Among the departments of J-R Company are a purchasing department, receiving department, accounting department, and finance department. If you were preparing a flowchart of a voucher system to be insta...

Q: Describe the audit implications of the Check Clearing for the 21st Century

Describe the audit implications of the Check Clearing for the 21st Century Act.

Q: Explain the difference between a customer’s order and a sales order,

Explain the difference between a customer’s order and a sales order, as these terms might be used by a manufacturing company making sales on credit.