Questions from Auditing and Assurance

Q: In your first audit of Hydro Manufacturing Company, a manufacturer of

In your first audit of Hydro Manufacturing Company, a manufacturer of outboard motors, you discover that an unusually large number of sales transactions were recorded just before the end of the fiscal...

Q: Explain why the audit of revenue and receivables may present the auditors

Explain why the audit of revenue and receivables may present the auditors with significant audit risk.

Q: In connection with an audit, what are the purposes of a

In connection with an audit, what are the purposes of a review of sales returns and allowances subsequent to the balance sheet date?

Q: In the examination of credit memoranda covering allowances to customers for goods

In the examination of credit memoranda covering allowances to customers for goods returned, how can the auditors ascertain whether the customer actually did return merchandise in each case in which ac...

Q: Cite various procedures auditors employ that might lead to the detection of

Cite various procedures auditors employ that might lead to the detection of an inadequate allowance for doubtful accounts receivable.

Q: Give an example of a type of receivable originating without arm’s-

Give an example of a type of receivable originating without arm’s-length bargaining. Comment on the presentation of such receivables in the balance sheet.

Q: Which technique results in a smaller sample size, sampling with or

Which technique results in a smaller sample size, sampling with or without replacement?

Q: Describe a retrospective review of an accounting estimate. With respect to

Describe a retrospective review of an accounting estimate. With respect to the audit of revenue, what is the purpose of performing this review?

Q: An inexperienced clerk assigned to the preparation of sales invoices in a

An inexperienced clerk assigned to the preparation of sales invoices in a manufacturing company became confused as to the nature of certain articles being shipped, with the result that the prices used...

Q: State briefly the objective of the billing process. What important document

State briefly the objective of the billing process. What important document is created by the billing department?