Answered: b. Existence and completeness…

Business

Accounting

b. Existence and completeness objectives. c. Existence, realisable-value and accuracy o

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter9: Auditing The Revenue Cycle.

Section: Chapter Questions

Problem 20RQSC

See similar textbooks

Related questions

Q: The main objective of an audit is а. Maintaining books of accounts properly b. Presentation of true…

A: Audit is the process of checking, verifying and examining books of account and financial information…

Q: Distinguish between errors and irregularities. Which do you think concern auditors the most?

Q: Analytical procedures consist of evaluating financial information by studying financial and…

Q: Describe the purpose and give examples of audit procedures in the search for unrecorded liabilities.

A: The search of unrecorded liabilities is the set of procedures designed to yield audit evidence of…

Q: analytical procedures

A: Analytical procedures are comparing the performance of the client over periods or other entities to…

Q: Auditors try to identify predictable relationships when using analytical procedures. Relationshiipss…

A: Analytical Procedure- Analytical Procedure is evaluation through analysis of financial information…

Q: When auditing the accounts receivable account on the balance sheet, an auditor’s procedures most…

A: Accounts receivable is the balance of money due to a firm for goods or services delivered or used…

Q: Auditors make materiality judgments during the planning/risk assessment phase of the audit to be…

A: Introduction: An auditor verifies the authenticity of commercial transactions that have been…

Q: Auditors make materiality judgments during the planning phase of the audit in order to be sure they…

A: 1.

Q: Indicate the primary audit objective for the following audit procedure: Foot the accounts payable…

A: Audit refers to the examination or auditing of the financial statements (FS) namely income statement…

Q: In the audit of accounts receivable, the most important emphasis should be on thea. Completeness…

A: The existence assertion is the assertion that liabilities, assets and shareholders capital balances…

Q: An audit trail is a step-by-step record by which accounting data can be traced to its source.…

A: Vouching refers to checking the business transactions with their respective source documents.

Q: What is an example of audit procedure when performing an accounts payable risk assessment for…

A: Auditing of Accounts Payable Accounts Payable is considered to be one of the important part in the…

Q: An auditor will most likely review an entity’s periodic accounting for the numerical sequence of…

A: Completeness represents that assets and liabilities are recorded and proper disclosure has been made…

Q: i) Which of the following statements correctly explains the responsibility of the external auditor?…

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

Q: Your audit client is under intense pressure to meet an earnings target. Which transaction assertion…

A: Assertions are the procedural claims that determine whether the financial statements are fairly…

Q: A primary objective of analytical procedures used in the final review stage of an audit is toa.…

Q: then, discuss the statement content, stating examples of substantive analytical procedures which…

Q: The overall objective in the audit of the acquisition and payment cycle is: Group of answer…

A: Introduction:- An audit is an "independent examination of financial statements of an organization.…

Q: In the audit of accounts payable, an auditor’s procedures will most likely focusprimarily on…

A: 1. Existence or occurrence - The best way to establish existence and ownership of investments is…

Q: Once risks are identified, auditors assess the risk of material misstatement at the _______ level…

A: Solution: Once risks are identified, auditors assess the risk of material misstatement at the…

Q: Assume that your audit partner asks you to design detailed substantive testing programs for accounts…

A: Considerable testing is a review technique that looks at the fiscal reports and supporting…

Q: Distinguish between the existence and completeness balance-relatedaudit objectives. State the effect…

A: An Audit is a process where the auditors’ process & identifies the misstatements or the risk…

Q: Which of the following is most correct with respect to the use of analytical procedures? *…

A: As per the SA 520 Analytical Procedures means evaluation of financial information through analysis…

Q: The most probable audit processes to verify receivables written off as uncollectible include Explain…

A: Procedure for auditing: Audit procedures are the processes, strategies, and methods used by auditors…

Q: Explain how management assertions, general balance-relatedaudit objectives, and specific…

A: Management assertions are implied representations by management about classes, of transactions and…

Q: Explain why you agree or disagree with the following statement:“In most audits, it is more important…

A: I agree with the given statement as in most audits, it is much important to test carefully the…

Q: Which of the following is an incorrect statement? a. The amount of audit work should vary…

A: The person that analyzes the books of the company is known as the auditor. The auditor checks all…

Q: What are the risks associated with auditing accounts payable? Can you explain the process of…

A: Introduction: Accounts payable (AP) is a general ledger account that represents a company's…

Q: In auditing receivables, what are the audit objectives and how would you be performed to arrive at…

A: Auditing implies an exhaustive and formal review of your records. Auditors give extraordinary…

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: Why is it important to emphasize the existence assertion when auditing accounts receivable?

Q: In deciding upon the acceptable risk of incorrect acceptance for an account, an auditor considers…

A: Auditing is the procedure of finding the errors and misstatements presented in the financial…

Q: Your audit client is under intense pressure to meet an earnings target. Which transaction assertion…

A: There are various types of transaction assertions. These includes; Accuracy, Completeness,…

Q: For each of the general audit procedures of (1) recalculation, (b) observation, (c) confirmation…

A: Audit procedures: the procedures of audit are those techniques or processes which the auditors…

Q: Analytical procedures consist of evaluations of financial informationmade by a study of plausible…

Q: An auditor reviews aged accounts receivable to assess likelihood of collection to support…

A: The aged account receivable is reviewed by the auditor that assess the posibility in order to…

Q: Define and give examples of off-balance-sheet information. Why should auditors be concerned with…

Q: Which of the following is consistent with an assessed level of control risk at below the maximum…

A: solution concept control risk at below the maximum level The control risk at below the…

Q: What audit procedures are most likely to be used to verify accountsreceivable written off as…

A: Audit procedure: Audit procedures are the processes, techniques, and methods that auditors perform…

Q: Read the case. Then answer the questions based on it. BACKGROUND: Audit standards indicate that…

A: Answer:- 2 Auditors should mitigate the risk associated with both very large and very small…

Question

When auditing accounts receivables, auditors are usually especially concerned about the:

a. Completeness and cut-off objectives.

b. Existence and completeness objectives.

c. Existence, realisable-value and accuracy objectives.

d. Posting and summarisation objective.

Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Professional guidance indicates that the auditor should consider revenue recognition to be high risk in planning an audit of a company’s financial statements. a. Identify the activities that affect the revenue cycle. b. Identify the financial statement accounts typically associated with the revenue cycle.
Discuss the meaning of the following terms and how they apply to auditing accounts receivable: a. tie-in b. completeness c. existence d. accuracy e. rights f. realizable value g. cutoff h. classification Please provide references.
When auditing the accounts receivable account on the balance sheet, an auditor’s proceduresmost likely would focus primarily on management’s assertion of
In the audit of accounts receivable, the most important emphasis should be on thea. Completeness assertion.b. Existence assertion.c. Rights and obligations assertion.d. Presentation and disclosure assertion
When auditing the accounts receivable account on the balance sheet, an auditor’s procedures most likely would focus primarily on management’s assertion of Select one: a. Presentation and disclosure b. Existence c. Rights and obligations d. Completeness.