Questions from General Auditing

Q: Identify the type of audit evidence being used in each situation described

Identify the type of audit evidence being used in each situation described below: a. The auditor tests cash remittance advices to ensure that allowances and discounts are appropriate and that receipts...

Q: Shane White bone is getting to know his new client, Clarrie

Shane White bone is getting to know his new client, Clarrie Potters, a large discount electrical retailer. Ben Brothers has been the engagement partner on the Clarrie Potters audit for the past five y...

Q: C. D. Hodgson and Associates Chartered Professional Accountants audited the

C. D. Hodgson and Associates Chartered Professional Accountants audited the financial statements of Tallender Company, a sporting goods retailer. As with all of his firm’s audits, Carl Hodgson conduct...

Q: Hatami and Partners completed the field work for the December 31,

Hatami and Partners completed the field work for the December 31, 2020, audit of Harbinger Corporation on March 1, 2021. The financial statements and auditor’s report were issued and mailed to sharehold...

Q: It is increasingly common for companies to program their computer information system

It is increasingly common for companies to program their computer information system to print and distribute cheques without further authorization. As an auditor, describe controls you would expect to...

Q: Explain why an unexpected change in the gross profit ratio leads the

Explain why an unexpected change in the gross profit ratio leads the auditor to suspect a wide range of possible misstatements in recorded transactions and balances.

Q: What substantive tests apply to the existence and valuation assertions for investment

What substantive tests apply to the existence and valuation assertions for investment balances?

Q: For each of the following documents, state whether it would be

For each of the following documents, state whether it would be located in the auditors’ permanent file or the current file. a. Articles of incorporation b. Bank confirmation for the current year c. Ma...

Q: For each of the following items, identify the related assertion:

For each of the following items, identify the related assertion: a. Inventory is recorded at the lower of cost and net realizable value. b. All delivery vans recorded in the accounting records are own...

Q: State the assertion that is violated in the following sentences:

State the assertion that is violated in the following sentences: a. The client fails to accrue management bonuses in the current year. b. The client does not adjust its inventory to the lower of cost...