Questions from General Auditing

Q: Discuss situations in which sales adjustments may be necessary. Identify necessary

Discuss situations in which sales adjustments may be necessary. Identify necessary controls to ensure that the accounting system recognizes only genuine adjustments.

Q: Identify situations leading to an inherent risk that an entity may wish

Identify situations leading to an inherent risk that an entity may wish to (a) overstate sales revenue and (b) understate sales revenue.

Q: Explain the kinds of fraud that could be expected in sales,

Explain the kinds of fraud that could be expected in sales, cash receipts, and sales adjustment transactions in the absence of adequate internal control procedures. Consider the importance of the segr...

Q: Explain what is meant by “cut-off” and why

Explain what is meant by “cut-off” and why it is important to auditors in establishing the fairness of the financial statements.

Q: State the main audit objectives for: (a) purchases

State the main audit objectives for: (a) purchases and payroll transactions and (b) accounts payable balances.

Q: Explain why achieving an accurate cut-off of purchases and sales

Explain why achieving an accurate cut-off of purchases and sales transactions is of critical importance in assuring the fairness of the financial statements. Illustrate your explanation with examples of...

Q: Explain the importance of segregating the personnel function from the payroll preparation

Explain the importance of segregating the personnel function from the payroll preparation.

Q: The Wellington Plaza Hotel is located close to the main railway station

The Wellington Plaza Hotel is located close to the main railway station in a large regional city. Its main client base is business people visiting the city for work-related purposes. The second larges...

Q: Describe programmed application controls you would expect to fi nd in a

Describe programmed application controls you would expect to fi nd in a computerized payroll system. Explain the audit procedures for testing those controls.

Q: Describe computer-assisted audit procedures that can be used in testing

Describe computer-assisted audit procedures that can be used in testing controls over purchasing.