An auditor is required to confirm accounts receivable if the accounts receivable balances are:     Older than one year     Material to the financial statements     Smaller than esxpected     Subject to valuation estimates

Q: The auditor considers materiality from the point of ___________ a. individual account balance b.…

A: SOLUTION- WHEN ESTABLISHING THE OVERALL AUDIT STRATEGY , THE AUDITOR DETERMINES MATERIALITY FOR THE…

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: Comment on the extent to which results from a negative confirmation may be relied upon to verify the…

A: Ans. Positive confirmation is an auditing enquiry that requires the customer to confirm the accuracy…

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: Question 10 of 20: Select the best answer for the question. 10. A trial balance indicates that the…

A: Liabilities + revenue + owners equity  Errors in trail balance  Clerical error  Errors of principles…

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: Select the best answer for the question 12. What account will be debited to record an accounts…

A: The account receivable accounts represents a promise made by an external company to pay for goods or…

Q: choose the internal sources of audit evidence. a.

A: Audit evidence: The audit evidence is the evidence gathered by the auditor to express an opinion on…

Q: Statement 1: Technically, offsetting in financial statements is accomplished when allowance for…

A: Answer; We have two different statements pertaining to the financial statements. Statement 1:…

Q: Statement 1: Common to future purchase commitments is the fact that they should be recorded as…

A: Audit refers to inspection or examination of the financial statements of the company through auditor…

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: Confirmations of individual account receivable balances direct with debtors will normally provide…

A: Direct party confirmations are part of audit procedure while gathering audit evidence regarding…

Q: Question 3 Which of the following is an analytical procedure that an auditor most likely would…

A: Audit: It implies to the detailed examination and investigation of company's financial records so as…

Q: An auditor tested the client's internal controls over granting customers credit and establishing…

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

Q: Which of the following procedures provides the most relevant information to determine the adequacy…

A: Introduction:- Accounts receivables:- Accounts receivables are the credit sales of a company and…

Q: If an auditor believes that a misstatement might be intentional and the effect on the financial…

A: c) If the auditors prepare the procedure and if check whether the fraud have taken place or going to…

Q: f the auditor obtains sufficient evidence on a client's accounts receivable balance through…

A: EOM paragraph provide by the auditor when he wants to explain some audit procedures or matter that…

Q: Question 15 Confirmations of individual accounts receivables balances directly with debtors will…

A: Accounts Receivables - Accounts Receivables are the customers who bought the goods on credit.

Q: ISA 240 the Auditor’s responsibilities relating to Fraud in an audit of financial statements,…

A: Part (i): The purpose is what distinguishes fraud from error. In s imple terms, fraud is a…

Q: - 24. Auditors may use positive or negative forms or confirmation requests for accounts receivable.…

A: Introduction:- An auditor is a person or an organization that a corporation hires to conduct an…

Q: Choose the one correct answer Which of the following statements is valid relating to confirmation…

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

Q: Which of the following types of receivables would not deserve the special attention of the auditor?…

A: Audit is the process of checking and verifying the financial statements in business and to analyse…

Q: $12,435.00 rather than the correct amount of $21,435.00 After asking the intern to search for other…

A: Bank Reconciliation Statement Cash balance as per bank statement 23,557.98 23,557.98…

Q: Dishonored checks are recorded by a government entity as Notes receivable Other Receivable Accounts…

A: Dishonored checks are those the payment of which is declined by bank due to various reasons. The…

Q: An auditor is required to confirm accounts receivable if the accounts receivable balances area.…

A:

Q: Which of the following is the best audit procedure for determining the existence of unrecorded…

A:

Q: Under which clause of ISA, the auditor's responsibilities relating to prevention and detection of…

A: Auditor is the person who is responsible for audit work. Audit means examination or review of books…

Q: ISA 240 the Auditor’s responsibilities relating to Fraud in an audit of financial statements,…

A: As auditor there are two types of auditing one can be engaged in the practice, internal and external…

Q: An auditor is likely to perform each of the below procedures to obtain evidence regarding the…

A: Audit  Contrary to unfavorable opinions, scope restrictions or the presence of significant…

Q: 8. Explain about the type of report the Auditor would issue END of the EXAM a. if he disagrees with…

A: Auditor modifies his opinion in the auditors report when: 1) The auditor concludes that, based on…

Q: True or False 1. When the auditor seeks evidence concerning the allowance for doubtful accounts he…

A: Hi student Since there are multiple subparts, we will answer only first three subparts.

Q: would help an auditor determine whether accounts payable have been misstated?     Examining…

A: Accounts payable (AP) is the sum owed to creditors and suppliers by a corporation (also referred to…

Q: The difference between the bank statement balance and the balance in Bank account in the general…

A: Bank reconciliation: It is a statement which is prepared to reconcile the balance as per cash book…

Q: The following are useful source of evidence with regard the reasonableness of the client’s…

A: Collectbiliy of account receivables: Non-collectible or uncollected account receivables are called…

Q: 38-Analytical procedure means the evaluation of financial information through the analysis of…

A: Financial information means information that is related to monetary values and that is related to…

Q: 7) Adjusting entries are made: A) For the differences between the bank statement cash balance and…

A: Adjusting entries are made for the differences between the bank statement cash balance and adjusted…

Q: Question 15 An auditor is required to confirm accounts receivable if the accounts receivable…

A: Audit of accounts receivable - Auditor should check the following points while performing audit of…

Q: When accounts receivable are confirmed at an interim date, auditors need not be concerned witha.…

A: Step 1 Accounts receivable is frequently a vital asset so auditors required an extensive and…

Q: evidence obtained

A: Correct answer :- False.

Q: If the auditor concludes that there is a high likelihood of material misstatement in accounts…

A: Auditing means the independent checking of company operation by outsider.

Q: Which statement is correct concerning a disclaimer of opinion and an adverse opinion? Group of…

A: The disclaimer of opinion shows that the auditor would not be able to form an opinion on the…

Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.