Module 5_ Mastery Exercise_ 23WB-ACT450-1

Make a note of any responses entered on this page in the last few minutes, then try to re-connect. Once connection has been re-established, your responses should be saved and this message will disappear. 020114022 AAUP - JENIN) y courses / AUDITING AND ASSURANCE SERVICES Section1 Lecture (20202 020114022 AAUP JENIN) / 10 July Time left 0: Determine the type of evidence we can get from this audit procedure. Calculate the ratio of cost of goods sold to sales as a test of overall reasonableness of gross margin relative the preceding year. O a. Analytical procedure O b. Confirmation Oc. Physicals examination O d. Inspection

whats the answer in question 1?

_____ means the application of audit procedures to less than 100% of the items within an account balance or class of transactions to enable the auditor to obtain and evaluate audit evidence. a. Inspection b. Observation c. Audit sampling d. Analytical Procedure

8 Audit Sampling is an investigative step or technique where less than 100% of the total items within the population of items are selected to be audited.   Question 8 options:   a) True   b) False

Auditor ABC audits Company XYZ's financial statements and its internal control over financial reporting. Auditor ABC uses attribute sampling to evaluate Company XYZ's warehouse physical controls. Specifically, Auditor ABC checks whether the warehouse security cameras are working properly. The auditor decides the tolerable error rate to be 5%, and sampling risk is 5%. In the past five years, the failure rate of XYZ's security camera is 0.00%. 1. Based on the information above, what is the confidence level, and what is the minimum number of items to pick from the population? (6 pts) 2. If the auditor decides to decrease the sampling risk from 5% to 1%, how will sample size change? Please answer A. Increase, B. Decrease, or C. No Change. (4 pts) Tolerable Error Rate Tolerable Error Rate Expected Error Rate 5% 6% 7% 0.00% 59 49 42 0.25% 93 78 66 13 Expected Error Rate 5% 6% 7% 0.00% 45 38 32 0.25% 77 64 55 0.50% 93 78 66 0.50% 77 64 55 0.75% 93 78 66 0.75% 77 64 55 55 1.00% 93 78 66 1.00%…

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STATEMENT 1: If the sampling unit is defined as the individual disbursement entry in the check register, the sampling frame would be the check voucher and its supporting documents. A STATEMENT 2: Not all audit tests applied to less than 100% of the populatian are considered audit sampling applications. A. Only Statement 1 is incorrect B. Only Statement 1 is correct C. Both statements are incorrect D. Both statements are correct

STATEMENT 1: In an audit sampling application, detection risk arises from the uncertainties of nonsampling risk and sampling risk. STATEMENT 2: Non sampling risk can be reduced to an acceptably low level by a 100% examination of the account balance or transaction class. A. Only Statement 1 is incorrect B. Only Statement 1 is correct C. Both statements are incorrect D. Both statements are correct

Task #2 Best Wood Furniture, Inc., a non-issuer that produces wood furniture, is undergoing a year 2 audit. The situations below describe changes made during year 2 that may or may not contribute to audit risk. For each situation, select the impact, if any, that the situation has on a specific component of audit risk for the year 2 audit. Selections are for once, more than once, or not at all. Consider each situation independently.   Situation Impact on audit risk   In year 2, the auditor noted that the company's newly hired purchasing agent was not obtaining competitive bids for all major purchase requisitions as required.       Early in year 2, the company expanded its warranty program to cover additional major products in an effort to increase sales.       The audit partner decided that the audit team needed to perform additional tests of detail over payroll in addition to the substantive analytical procedures done last year over payroll.…

Which of the following statements is always true when an auditor is planning a year-end audit? 2 points Multiple Choice eBook References An engagement should not be accepted after the fiscal year-end. An inventory count must be observed at the balance sheet date. The client's audit committee should not be told of any specific audit procedures which will be performed. An audit plan should be developed that includes a time budget.

1. The audit risk is 3% while the inherent risk is 80% and control risk is 40%. What is the detection risk? a. 11.84%b. cannot be determined due to insufficient information  c. 10.67%d. 9.38% 2. The risk is related to the effectiveness of the client's internal control. a. control risk b. audit risk c. inherent risk c. detection risk   3. Which is not a factor that affects inherent risk at the account balance level? a. susceptibility of the account to the theft b. operating characteristics c. complexity of calculations related to account

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A customer intended to order 100 units of product Z96014 but incorrectly ordered product Z96015, which is not an actual product. Which of the following controls most likely would detect this error?a. Check digit verification.b. Record count.c. Hash total.d. Redundant data check.

7-36 (OBJECTIVES 7-7, 7-8) You are the in-charge auditor on the audit of Vandervoort Company and are to review the audit schedule shown below. a. List the deficiencies in the audit schedule. b. For each deficiency, state how the audit schedule could be improved. c. Prepare an improved audit schedule, using an electronic spreadsheet software pro- gram. Include an indication of the audit work done as well as the analysis of the client data (instructor's option). Required Vandervoort Company A/C # 110-Notes Receivable Schedule Prepared by JD Approved by PP 2-15-17 N-I Date 1-21-17 12-31-16 MARTIN- APEX CO. AJAX, INC. JJ.CO. P. SMITH PETERSON TENT CO. Date made Date due Paid to date 6/15/15 6/15/17 11/21/15 Demand Paid $3,591 11/1/15 $200/mo. 12/31/16 x $ 13,180 7/26/16 $1,000/mo. 9/30/16 25,000 5% 50,000 5/12/15 Demand 9/3/16 $400/mo. 11/30/16 x $ 12,000 x None Paid Face amount $5,000 $2,100 Interest rate 5% 5% 5% 5% 6% Value of security None None $ 24,000 None $ 10,000 Note Receivable:…

help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working

Question 7 Z scores are:   A. Used to evaluate the quality of imaged files   B. Used to identify outliers in data   C. A fraud score based on ISO standards   D. Issued by the SEC to identify public companies that are experiencing risk assurance problem           ReplyForward

9. Please help ASAP!!!

Sh7 Please help me.  Thankyou.

IT Controls: Systems Development, Program Changes, and Application Controls

Question 45 As the acceptable level of detection risk decreases, an auditor may change the Group of answer choices Timing of substantive tests by performing them at an interim date rather than at year end. Nature of substantive tests from a less effective to a more effective procedure. Timing of tests of controls by performing them at several dates rather than at one time. Assessed level of inherent risk to a higher amount.

6. When you adjust a general journal entry, Sage 50 - a. deletes the original entry and saves the correction b. always includes the original entry and the corrections in reports for a complete audit trail c. includes the original and reversing entry in reports only when you choose to show Corrections d. renumbers the correction so that it replaces the original journal entry number in the report