GIven the situation that you are an auditor of GZ Company and you were asked to provide the following(s): a. Explain the audit objectives for the management assertion of Bank, Cash, Inventories, Revenue and Payment. b. Explain 5 Audit procedures used in the process of acquiring evidence to test the management assertion for Bank, Cash, Inventories, Revenue and Payment.

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: Which financial item of a bank is audited when the auditor pays particular attention to establishing…

A: During the audit, auditor should perform procedures to obatian reasonable assurance about the item…

Q: You were assigned to audit the financial statements of PASADO Company for the year ended December…

A: Cash account is maintained to meet day to day expenses, and such account includes bank balance. The…

Q: ecutives would commit fraud and how understanding the motive for fraud can assist an auditor in the…

A: Corporate fraud refers to the illegal and unethical activities undertaken by an individual who is…

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: 20. Below is an internal control associated with some financial statement audit cycle that the…

A: Internal controls are the procedures, rules and system which is established by the company to…

Q: Independent auditors perform audits on the financial reports of public companies. This type of…

A:

Q: During an audit of a company’s cash balance on a company with operations in only onecountry, the…

A: Answer:   Option a

Q: Explain 5 audit procedures in obtaining evidence to test the management assertion for bank.

A: The company should audit its book of accounts before filing the financial statements. The audit is…

Q: ich of the following procedures would an auditor most likely perform to test trols relating to…

A: The given scenario relates with cash receipts. To check the authenticity of the transaction the…

Q: Statement 1: The proper functioning of a bank's authorization controls is particularly important in…

A: During audit, auditor is required to performe procedures to obtain reasonable assurance about the…

Q: ect the control objective being tested by placing the correct letter in the blank. A. Existence B.…

A: Solution:- Given, Auditors are auditing the cash receipts for Great Wall Corporation. For each audit…

Q: When an auditor sends out bank confirmations at the year-end audit, they are performing a(n) O…

A:

Q: Which of the following is an effective audit procedure that an auditor might use to detect kiting…

A: Kiting is the process in which bank misrepresent their financial instruments with the objective of…

Q: Determine what are some of the risk assessment procedures to be made in order for the auditor to…

A: Auditing is the process of supervision made by the external person or internal employee in the…

Q: 2. Which technique would be most effective and efficient for testing the operating effectiveness of…

A: The bank reconciliation statement is the statement that is prepared to rectify the errors between…

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: ask 1) Review and evaluate the accounting system This review can be of the complete system or of one…

A: Accounting functions are described as the collection of financial processes that aid in the…

Q: Attached is an audit working paper prepared by a new staff auditor based on his testing of a…

A: Auditor while performing his duties for conducting an audit prepares some documents, file work and…

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: Which of the following is a preventive control?a. Reconciliation of a bank account.b. Recalculation…

A: Definition: Prevention control: Prevention control is an activity undertaken to avoid or prevent the…

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: paring the bank reconciliation. 2. Examine vendors’ invoices and other s

A: The auditors verify the fairness of financial statements by collecting audit evidence by following…

Q: What is the purpose of a bank confirmation and why are bank confirmations an important piece of…

A: The revenue cycle is defined as the accounting process by which a corporation keeps track of the…

Q: In an audit of cash receipts, fraud detection is often a primary focus. It's up to the auditor to…

A: In this audit, the auditor focuses on cash since it is the most liquid asset of the organization.…

Q: Which of the following procedures would most likely be performed during planning?a. Surprise…

A: Identifying related parties would most likely be performed during planning.

Q: Which of the following control objectives would be least likely be considered by the internal…

A: Option 1 This will be considered by the auditor in drafting the audit procedures as it can lead to…

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: udit reports of banks.

A: Today, a lot of risks are associated with the banking sector. The banking sector is trying to reduce…

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: 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: A client has a large and active investment portfolio that is kept in a bank safe deposit box. If the…

A: A specific procedure undertaken by an auditor to procure evidence in a particular audit engagement…

Q: 1 essential part of the auditor's responsibility in auditing cash receipts is to identify…

A: Cash receipt refers to the evidence of purchase issued when the buyer of goods has paid in cash and…

Q: Operational audits generally have been conducted by internal auditors and governmental audit…

A: Operation audit is a systematic review of effectiveness, efficiency, economy of the operation.…

Q: You are part of the audit team that is auditing Hillsburg Hardware Co. and you have been assigned to…

A: A test of controls is an audit procedure to test the effectiveness of a control used by a client…

Q: V

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

Q: When auditing with “fraud awareness,” auditors should especially notice and follow up employee…

A: Fraud: Fraud is the act of deliberately conduction false reporting of facts, acquiring funds or…

Q: The auditor should ordinarily send confirmation requests to all banks with whichthe client has…

A: Positive confirmation request is the inquiry made by the auditor about the account balance of a…

Q: PROBLEM 2 You are revisiting the audit working paper presented to you by your audit staff in line…

A: You have asked various multiple choices questions and kindly resubmit remaining questions to get the…

Q: Analytical procedures are one of many financial audit processes which help an auditor understand the…

A: Introduction:- Analytical procedures are one of many financial audit processes which help an auditor…

Q: As part of the audit of different audit areas, auditors should bealert for the possibility of…

A: a. b. c.

Q: Which of the following control objectives would be least likely be considered by the internal…

A: from the following given above options: OPTION(4)  would be likely considered by the internal…

Q: amount of cash is accurately recorded on the financial statements. All of the following are…

A: an audit, independent examination of the financial statement of an entity. there are mainly three…

Q: Assertions are expressed or implied representations by management that are reflected in the…

A: Explanation of above audit procedure with proper justification are as follows

Q: Which of the following control objectives would be least likely be considered by the internal…

A: Evaluation of the group of choices is to be done to find out which choice is not relevant for the…

Q: In the audit of a client with a fiscal year ending December 31, the CPAs obtain a January 10 bank…

A: A bank reconciliation statement refers to the statement that matches the balance as per the bank…

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: Prepare a broad audit plan: 1. What material types of transactions and transaction cycles are…

A: Audit Plan: When performing an audit, it is necessary to follow a precise plan, which is called the…

Q: Which of the following are audit procedures? a) Inspecting non-current/fixed assets b) An item of…

A: The following are the audit procedures Inspecting non-current/fixed assets An item of…

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.