Questions from Auditing and Assurance

Q: Explain the circumstances under which an auditor should perform audit tests primarily

Explain the circumstances under which an auditor should perform audit tests primarily designed to uncover fraud in the payroll and personnel cycle.

Q: Distinguish among difference estimation, ratio estimation, mean-per-

Distinguish among difference estimation, ratio estimation, mean-per-unit estimation, and stratified mean-per-unit estimation. Give one example in which each can be used.

Q: State the relationship between the following: a. ARO and

State the relationship between the following: a. ARO and sample size b. Population size and sample size c. TER and sample size d. EPER and sample size

Q: What procedures do auditors typically follow to address the completeness of disclosures

What procedures do auditors typically follow to address the completeness of disclosures?

Q: Describe a contingency. What conditions are required for a contingent liability

Describe a contingency. What conditions are required for a contingent liability to exist?

Q: Assume that the auditor tested an account receivable with a balance of

Assume that the auditor tested an account receivable with a balance of $3,000 and determined that the audited value was $2,700. That is, the auditor determined the receivable was overstated by $300. W...

Q: A client applies manufacturing overhead to inventory on the basis of $

A client applies manufacturing overhead to inventory on the basis of $3.47 per direct labor hour. Explain how the auditor will evaluate the reasonableness of total direct labor hours and manufacturing...

Q: Explain the differences in the primary roles performed by human resources,

Explain the differences in the primary roles performed by human resources, the employee’s primary supervisor, and those who oversee the creation of a payroll journal or listing and the payroll master...

Q: The following audit procedures are concerned with tests of details of general

The following audit procedures are concerned with tests of details of general cash and financial instruments balances: 1. Obtain a standard bank confirmation from each bank with which the client does...

Q: You are auditing general cash for the Pittsburgh Supply Company for the

You are auditing general cash for the Pittsburgh Supply Company for the fiscal year ended July 31, 2019. The client has not prepared the July 31 bank reconciliation. After a brief discussion with the...