Analytical procedures involve: Watching physical inventory counts and distribution of wages. Getting the confirmation from debtors and creditors. Comparison of salaries expenses with number of employees Checking mathematical accuracy of the calculation.

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: How is accounts-receivable turnover computed and what can the calculation tell the owner-manager?

A: Ratio analysis is significant for the financial position of the corporation, profitability,…

Q: What are your key takeaways from the receivables audit? How critical is receivables to the business?…

A: This question deals with the receivables audit.

Q: Below are some audit procedures. Classify each procedure according to the following types of audit…

A: Solution:- Classification of each procedure according to the following types of audit evidence as 1)…

Q: Which of the following would provide evidence using the evidence-gathering technique of…

A: There are various method to gathering evidences. i.e. Documentation, Inspection, observation,…

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: An auditor's techniques for examining the balance sheet's accounts receivable account are most…

A: Answer: Concept Balance sheet are the financials of the company. They are expected to be true and…

Q: indicators that a company is doing an effective job at managing accounts receivable

A: Accounts receivable is the earnings of the company for which the payment has not been made by the…

Q: After all the ledgers had been drawn up, the following differences and errors were identified.…

A: The following ledgers have been rectified as per the given information.

Q: Match the following form (transaction type) with the appropriate transaction description: Рayment…

A: Transactions: A business transaction is a financial transaction that takes place between two or more…

Q: The Ledger related to expenses is entered in which one of the ledger? Sales Ledger Purchase return…

A: Expenses are not recorded in a specific ledger.

Q: tive is: Ocurrence it evidence is: Documentation - vouching s the accounts receivable sub-ledgers…

A: Audit assertions are also regarded as the management assertions which are the claims of the…

Q: Discuss audit procedures for the audit of accounts receivable. How does this apply to your chosen…

A: Audit procedures: Audit procedures are the process of evaluating the quality of the financial…

Q: Prepare a trial balance for the selected general ledger accounts and prove the accuracy of…

A: Trial Balance -:A trial balance is a simple schedule of all the common ledger accounts (both income…

Q: please define Inspection of documents and records Physical verification of liquid money Observation…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Warm-up: Elements of Statement of Comprehensive Income Identify the correct dassification of each of…

A: The balance sheet represents the financial position of the business on the particular date, The…

Q: As a consultant explain to your staff how the absence of Trial Balance will affect the preparation…

A: Comments; Multiple questions asked Trial balance - It is a statement that shows the particular…

Q: To test whether debits to accounts receivable represent valid transactions, the auditor should trace…

A: Account receivable  are shown in BALANCE sheet and it is important for business to know the the…

Q: When using a manual accounting information system, which of the following transactions would be…

A: Journal : A journal is a book of original entry where all the monetary transactions in the form of…

Q: After all the ledgers had been drawn up, the following differences and errors were identified.…

A: Rectification entry has to be passed when any error has been made in the books of accounts and…

Q: You are a trainee in audit firm and you have been assigned to verify the follow balances for IJK…

A: The question is based on the concept of verification of Assets and Liabilities by an auditor. As per…

Q: As an accountant, it is important that you understand how to identify key parts of a work sheet.…

A: The accounting process contains a set of steps followed by the entity to record the financial…

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: Discuss, using practical example the effect of prepayment figures on the preparation of a  financial…

A: Note: As per the policy we are supposed to solve one question at a time, Kindly repost the further…

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: You've just completed an audit of receivables. What are your impressions of the findings? How…

A: Amounts of money in the bank: The term "cash equivalents" refers to current assets that can be…

Q: For each of the following items, identify whether the item is considered current or noncurrent, and…

A: When the item is with the organisation for the 12 months or less than one accounting period then it…

Q: Which of the following procedures would an auditor most likely perform in searching for unrecorded…

A: Audit is the process of examining and verifying books of accounts and financial information and this…

Q: Identify the items from the following list that are likely to serve as source documents. Is this a…

A: >Analyzing and recording the transaction is the first stem in the Accounting…

Q: Before hiring someone for a position involving access to cash, checks or inventory, a company should…

A: The answer for above question is given below:

Q: . Master Supervisor E. Comptroller . Master Administrator What account type is considered a…

A: Correct option is (D) Master administrator. Master administrator is a person who is also known as…

Q: V

A: trainee in an audit firm and you have been assigned to   Sales

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: The accountant at Borris Co has prepared the following reconciliation between the balance on the…

A: We have the following information: Balance on general ledger control account = $68,566 Credit…

Q: You were hired to assist Oman based Company in designing an accounting system for Oman Co., Ltd. has…

A: We will answer only first three subparts of the question as it is not specified which sub part is to…

Q: You have been hired as a consultant by a parts manufacturing firm to provide advice as to the proper…

A: Direct write-off method: This method does not make allowance or estimation for uncollectible…

Q: What does the phrase "Revenue is recognized at the point of sale" mean? (Assume the company reports…

A: Accrual Basis of Accounting: The accrual basis of accounting is a method of accounting where the…

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: Prepaid expenses are normally created as a part of the purchasing process. Prepaid energy bills,…

A: Introduction Prepaid expenses are the advance payments made for goods and services to be used in…

Q: When using the Spreadsheet (work sheet) method to analyze noncash accounts, it is best to start with…

A: Non Cash Items - Non Cash Items are those items that are incurred without considering cash into it.…

Q: An “Accounts Receivable Customer Balances” report shows revenues by customer for a specified date…

A: Account receivable arises when we sell goods on credit and account receivable customer balances…

Q: Due to this accounting principle I have to store the accounting documents for example invoices, cash…

A: Accounting is based on various principles that are to be considered while preparing accounts of the…

Q: Warm-up: Elements of Statement of Comprehensive Income Identify the correct classification of each…

A: 1. Assets are those which provide future economic benefits. 2..Liabilitiesa are to be paid in the…

Q: Fill in the blanks with these terms: tangible asset, income statement, cash, statement of cash flow,…

A: A = L + NA is known as the Accounting Equation.   Financial Accounting consist largely of keeping…

Q: What are your takeaways from the audit of receivables?

A: Answer: Receivables are assets of financials that are to be received from debtors. Takeaways from…

Q: Classify the following reports as being either scheduled or on-demand reports. Cash disbursements…

A: