Questions from General Auditing

Q: The following errors due to sloppy paperwork and poor controls were found

The following errors due to sloppy paperwork and poor controls were found during an audit. 1. A customer’s order was shipped without credit approval. 2. Some sales made in January were recorded as bei...

Q: International Bank is experiencing bad publicity surrounding huge fraud losses in its

International Bank is experiencing bad publicity surrounding huge fraud losses in its foreign currency department. Accusations are being made in the press that the rogue trader blamed for the losses w...

Q: Within a client’s IT system, supplier information is contained in a

Within a client’s IT system, supplier information is contained in a supplier master fi le (SMF). Each supplier has a unique supplier code. If the purchasing clerk attempts to place an order from a supp...

Q: The worksheet you completed for the case study question in chapter 8

The worksheet you completed for the case study question in chapter 8 includes your estimates of the overall risk assessment (ORA) and the acceptable detection risk (DR) in the sales to cash receipts p...

Q: Alabama Industries manufactures and wholesales small tools. It sells the tools

Alabama Industries manufactures and wholesales small tools. It sells the tools to a large group of regular customers and makes most sales by telephone to this group. Additionally, it receives orders o...

Q: Two of your friends from high school will soon realize their lifetime

Two of your friends from high school will soon realize their lifetime dream of opening an English style pub. They recently spoke with their accountant, who indicated that they should ensure that they...

Q: You are testing the controls over bank accounts for your audit client

You are testing the controls over bank accounts for your audit client, Manitoba Ltd. You note that the responsibility for bank reconciliations has changed due to a corporate reorganization halfway thr...

Q: Hilltop Partners is planning the audit for one of its clients.

Hilltop Partners is planning the audit for one of its clients. Jake Hilltop is performing the risk assessment at the assertion level for the accounts payable account to determine the nature and timing...

Q: Mathieu Lapointe has the task of reviewing the evidence from analytical procedures

Mathieu Lapointe has the task of reviewing the evidence from analytical procedures conducted by the audit juniors on the audit of Soleil Services Ltd. The audit juniors have reported the results of th...

Q: Connie Cyr is the recently appointed engagement partner of the audit of

Connie Cyr is the recently appointed engagement partner of the audit of Camel Ltd. She has just taken over the audit from Kar-Ming Leo, who rotated off the audit after a seven-year period as the engag...