Confirmations of individual account receivable balances direct with debtors will normally provide evidence regarding:     Collectability     Ownership of balances confirmed     Existence of balances confirmed     Internal control over balances confirmed

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: The tests of details of balances procedure to ‘foot the payables list for interest- bearing debt and…

A: Auditing means the inspection of financial accounts of the company to determine if the records are…

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

A: Accounts receivable refers to the money due to the seller from buyers who had purchased on account…

Q: Confirmations of accounts receivable provide evidence primarily about which two assertions? Select…

A: Accounts receivables are those account on which business has made credit sales, on account.…

Q: What is the purpose of the following control procedures (i.e., what threats is it designed to…

A: To protect the assets and to enhance the accuracy and reliability of its accounting records,…

Q: Which of the following is not true regarding the confirmation of cash balances? Question 23…

A: In respect of regarding the confirmation of cash balance is to provide confirmation and evidence…

Q: From the following alternatives, choose the internal sources of audit evidence. a. Confirmation from…

A: Internal sources of audit evidence include a company's documented processes, policy documents,…

Q: Question 34 Two assertions for which confirmation of accounts receivable balances provide primary…

A: Accounts receivable are those account balances which appear on the current assets of balance sheet…

Q: v. The financial controller of MJA Bhd. will not allow you to confirm the accounts receivable…

A: In the given case, the financial controller of MJA Bhd. has not allowed to confirm the accounts…

Q: 30 Which of the following is not a principal objective in auditing accounts receivable?   Group of…

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

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: Forensic Accounting: Assurance Engagement 1: Expenditure Analysis. Expenditureanalysis is used when…

A: Revenues from other areas include the leftover profits accounted in other (unknown) revenue heads

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: Confirmation of individual accounts receivable balances directly with debtors will, of itself,…

A: The auditor would normally confirm the balances on balance sheet by using external confirmation…

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: egarding the confirmation of accounts payable is true?   Group of answer choices The confirmation of…

A: it is important to understand the client account payable and account receivable valences in order to…

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: Unreleased checks *   a. Should be treated as outstanding checks b. Should be restored to the cash…

A: Check facilities are given by banks to customers to use their accounts.

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

A: This question is answered as per Generally Accepted Auditing Standards - AICPA.

Q: Audit documentation often includes a client prepared aged trial balance of accounts receivable as of…

A: Audit documentation: It is a detailed evaluation and analysis of the financial information of a…

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: Which of the following statements is true regarding assertions in the revenue cycle?     All five…

A: under normal audit risk conditions the occurrence assertion would be more relevant than the…

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: TRUE OR FALSE. If assignment of receivables is made under a notification basis, the company, the…

A: Assignment of accounts receivable is a loan agreement in which the borrower assigns the lender to…

Q: Question 10 The general accounting standards for recognition and measurement of accounts receivable…

A: 1. As per IFRS, the accounts receivable is classified as financial asset. The financial asset is…

Q: Deposits accepted by bank are: Select one alternative: Bank’s liabilities Deposits are not…

A: Deposits are the amount deposited in the bank by the customer. Bank pays a specific rate of interest…

Q: Sending accounts receivable confirmation letters to the client's customers is consistent with the…

A: Accounts Receivable are those accounts of customers to whom business has made credit sales on…

Q: Write and explain any 10 situations when the Bank Statement balance and Company’s Bank Statement…

A: A bank reconciliation statement reconciles an entity's bank account with its financial records by…

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: Choose the one correct answer. Sending accounts receivable confirmation letters to the client's…

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

Q: Is notice requirement required before filing a case in escheat proceedings for unclaimed balances?…

A: Escheat refers to the right of the government to take ownership of unclaimed property or unclaimed…

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: Which form of receivable financing is equivalent to an absolute sale of accounts receivable?   a.…

A: Solution: "Factoring"  form of receivable financing is equivalent to an absolute sale of accounts…

Q: 46. Which of the following results to the recognition of expense Granting of cash advances for…

A: The act of transforming an asset into an expense is known as expense recognition.

Q: Explain why each of the following combinations of tasks should or should not be separated to achieve…

A: Ethics: Business ethics refers to a set of moral codes and guidelines that governs corporate…

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: 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: True or False. 13. Deposit in transit is a reconciling item added to the unadjusted book balance.…

A: A bank reconciliation is a statement that compares the Book's cash balance on a company's balance…

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: evidence obtained

A: Correct answer :- False.

Q: Confirmations of accounts receivable provide evidence primarily about which two assertions?a.…

A: Accounts receivable is the outstanding amount  due from the customer for selling the goods on…

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: Management Assertions. Your audit manager has asked you to explain the PCAOB assertions by using an…

A: When an auditor wants an audit of a financial statement, this is most important concern to verify…

Q: Method of preparing bank reconciliation wherein the balance per bank and per book is separately…

A: The bank reconciliation statement is prepared to equate the balance of cash book and pass book with…