a) Audit tests include tests of controls and substantive procedures. Substantive procedures can be divided into substantive analytical procedures, tests of balances, tests of transactions and tests of disclosures. Required: For each test in the table below, select the type of audit test it represents.  T 1 Examine the financial report to determine whether all related party loans are properly presented 2 Recalculate depreciation figure 3 Trace sales recorded in the sales journal to shipping documents 4 Examine sales invoices for initials to indicate that prices and extensions have been checked 5 Check cost of closing inventory to subsequent sales prices 6 Confirm loan balances with financial institutions

Q: When auditing the revenue and collection cycle, auditors normally select balances to confirm from…

A: Revenue and collection cycle: The revenue cycle records all the transactions that originate from…

Q: Choose an alternative which is not the external source of audit evidence. a. Confirmation from…

A: External Evidence are audit evidences that originate outside the client’s organization. These…

Q: Which of the following communications is most likely to be written before the balance-sheetdate?a. A…

A: D.Correct.- An engagement letter would be written before accepting an engagement and therefore…

Q: For each of the accounts balances and associated assertions below, select the audit procedure from…

A: Auditing procedures are those which are step by step followed by the auditor in evaluating the…

Q: During the audit of Albert Eistein, what relevant assertion should be used to record loans…

A: “Since you have asked multiple questions, we will solve the first question for you.  If you want a…

Q: 10. The inspection of a vendor's invoice by the auditors is:  Select one: a.  Direct evidence…

A: Solution:- Introduction:- An auditor is a person elected by the organizations performing audit of…

Q: In order to make sure that loans are properly classified, the auditor would:   a. Examine due…

A: Audit is an independent examination of the financial staemetnts of an entity to present a true and a…

Q: Which of the following provides the highest-quality evidence regarding the Valuation of recorded…

A: Performing the Analytical procedures provides the highest-quality evidence regarding the Valuation…

Q: What is the process of confirming accounts receivable balances. Why is it important for auditors to…

A: The main objective of the auditor is to provide an opinion on the financial statement audited. The…

Q: If the objective of a test of detail of transaction is to detect overstatement of sales, the…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: In auditing the client’s receivables, the auditor decided to select entries in the sales journal and…

A: As per the guidelines, only one question is allowed to be solved. Please upload different question…

Q: A typical substantive procedure for receivable balance and sales transactions may include…

A: Assertions: Assertions are used by the auditor to consider the different types of misstatements that…

Q: Items a through frepresent the items that an auditor ordinarily would find on a client-prepared bank…

A: Bank Reconciliation Statement is a statement document that reconciles the difference in the cash…

Q: all statements are true B. all statements are false C. S1 and S2 are true D. S1 and S3 are true

A: Correct option : B

Q: scuss the process of auditing the following: • Revenue • Receivables • Expected Credit Lo

A: An audit, for example, is a type of on-site verification, similar to an inspection or examination,…

Q: In auditing the client’s receivables, the auditor decided to select entries in the sales journal and…

A: Assertion of Existence: Assets or liabilities of the company exist at a given date, and recorded…

Q: If you are an auditor and assigned to audit inventory. So as an auditor 1. How do you ensure that…

A: Honor Code: Since you have posted a question with multiple sub-parts, we will solve the first 3…

Q: Which of the following substantive audit procedures is most likely to be performed by the auditor to…

A: Substantive audit procedures refer to audit processes performed by the auditor to detect material…

Q: For each of the descriptions 1-6, match the correct word or phrase from A-H. A. Inspections of…

A: Solution:- Given, For each of the descriptions 1-6 match the correct word or phrase from A-H

Q: Cite one one transaction-related audit objective for each of the following transactions: 1.…

A: Audit Objectives: The purpose of an audit is to get reasonable confidence that the financial…

Q: which of these substantive procedures is not used to obtain evidence about contingencies?a. Scanning…

A: Contingencies are the future expectation of losses which can happen in the organisation. Auditor…

Q: The following are examples of documentation typically obtained by auditors: Duplicate sales…

A: Auditing: It is systematic process of examining books of accounts and relevant financial information…

Q: An audit team would most likely examine the detail support for charges to which of the following…

A: Audit Procedures:  A specific procedure undertaken by an auditor to procure evidence in a particular…

Q: Indicate whether each of the following audit procedures is a testof controls, a substantive test, or…

A:

Q: determine its proper allowance for loan losses

A: Option a is wrong because by making visits to the business sites, auditor cannot help in determining…

Q: ng dre You are appointed as an auditor for Sohar Electric Trading Company and finds that ontrols…

A: The auditors need to identify the risk of material statements in the financial report and respond…

Q: A typical substantive procedure for receivable balance and sales transactions may include…

A: Specifically disclosed in noes to accounts also , in income statements

Q: The following are two specific audit objectives in the audit of accounts payable. The list referred…

A: Accounts payables are accounts related to those suppliers from whom business has made credit…

Q: The following are two specific balance-related audit objectives inthe audit of accounts payable. The…

A: Audit is an assessment of the financial statements in which, an independent auditor checks whether…

Q: 3. In the audit of loans payable, which of the following audit procedure would be most likely…

A: Answer: Audit procedures are performed to test the assertions for the financials. The assertions are…

Q: Audit tests include tests of controls and substantive procedures. Substantive procedures can be…

A: Substantive Audit tests are performed to test the materiality of the elements. These tests are…

Q: avy Machinery   Finished goods inventory   Retained Earnings   Petty cash fund…

A: Audit refers to the physical examination or inspection of the books of accounts of the company in…

Q: Listed in the table below are some common audit procedures. For each procedure below: Identify…

A: An audit of financial statements is an examination conducted by an independent auditor on the…

Q: goal of this substantive audit procedure

A: Option b is wrong because for determining the proper recording of purchases, there is no need to…

Q: obtain evidence

A: Correct answer :- True.

Q: 1 Examine the financial report to determine whether all          related party loans are properly…

A: "Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Q1 The following are specific balance-related audit objectives applied to the audit of accounts…

A: The first specific related objective deals with the amounts which must not be involved in the…

Q: Audit evidence can come in different forms with different degrees of persuasiveness.Which of the…

A:

Q: The following general ledger accounts are included in the trialbalance for an audit client, Jones…

A: Cycle Balance sheet Accounts Income statement accounts Sales and collection Cash Accounts…

Q: Which of the following audit procedures would an auditor most likely perform to test controls…

A: An auditor must check the shipping documents that have not been recorded in sale journal to conform…

Q: What procedures must the auditor perform when gathering evidence related to contingencies? (Several…

A: Audit evidence: Audit evidence refers to the information and explanations used by the auditor in…

Q: Choose the one correct answer. Which of the following Test of Controls is done to examine whether…

A: Auditing means the independent checking of company operation by outsider. Auditor is  qualified and…

Q: The following are specific balance-related audit objectives applied to the audit of accounts…

A: Audit is the process of examining the books of accounts of the business entity by a knowledgeable…

Q: Which of the following is/are the least persuasive type of audit evidences? 1. Photocopies of sales…

A: The answer for the multiple choice question and relevant explanation are presented hereunder : Audit…

Q: Auditors gather several different types of evidence during the audit including physical evidence;…

A: The audit is the examination of the financial recording of the company. The auditor is the person…

Q: discuss the process of auditing the following: • Revenue • Receivables • Expected Credit Loss (

A: As an example, an audit is a type of on-site verification, like an inspection or examination, of a…