goal of this substantive audit procedure
Q: As part of your annual audit plan, you will be conducting an audit of the Purchases-Payables cycle.…
A: 1) Purchase requisition (PR) process: PR is prepared/raised by the purchasing department which is…
Q: Attribute Sampling and Monetary-Unit Sampling are two sampling techniques designed to help an…
A: Monetary-Unit Sampling and Attribute Sampling are two different type of sampling techniques widely…
Q: he following are commonly performed tests of controls and substantive tests of transactions audit…
A:
Q: . Inflated sales and bill-and-hold transactions. b.Bill-and-hold transactions and embezzlement of…
A: A Fraud Triangle is a framework that clearly indicates the motivation for an individual to commit…
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: 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: Which of the following procedures would an auditor most likely perform in searching for unrecorded…
A: Account payable means the amount owed by business to outsider for the goods received and services…
Q: Audit procedure 1 During controls testing the auditors selected a sample of sales invoices and…
A: Following is the answer to the given question
Q: Which of the following audit procedures is a dual-purpose test, which tests the effectiveness of…
A: A dual-purpose test is an audit method that serves as a control and substantive test at the same…
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: Why is there a greater emphasis on the detection of fraudin tests of details of cash balances than…
A:
Q: The auditor is concerned that fictitious sales have been recorded. Which of the following procedures…
A: Answer- Select a sample of recorded sales invoices and vouch to sales orders, shipping document…
Q: Which among the following types of audit evidence can be considered the most reliable? a. Verbal…
A: Please see the next step for the solution
Q: When an audit team selects a sample of shipping documents from the company's shipping logs and…
A: When an audit team selects a sample of shipping documents from the company's shipping logs and…
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: ient’s treasurer. d. A check, issued by the company and bearing the payee’s endorsement, that is…
A: Given: To explain the correct option among the given options as,
Q: List the transaction-related audit objectives for the verificationof cash receipts. For each…
A: Audit objectives for verification of cash receipts are- Recorded sales Database management…
Q: When auditing the cash account, the auditor traces the cash receipts, which are recorded on the cash…
A: Auditing refers to the process of physically evaluating and inspecting all the financial information…
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: 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: In rendering cash count the auditor observed that one of the items being presented by the custodian…
A: Audit refers to the examination as well as investigation of the accounting records and the financial…
Q: Which of the following substantive audit procedures is most likely to be performed by the auditor to…
A: Substantive audit procedures refer to audit processes performed by the auditor to detect material…
Q: Which of the following audit procedures uses “a purchase transaction” as the sampling unit? A.…
A: Audit Procedures for Purchase Transaction The proper audit procedures which are needed in the…
Q: A key internal control in the sales and collection cycle is the separation of duties between cash…
A: Internal control: Internal control refers to the process of checking by the management that the…
Q: Which of the following procedures would provide the most reliable audit evidence?a. Inquiries of the…
A: Audit Evidence: Audit evidence is the proof in the form of receipts, invoice and other documents…
Q: What are the goals of dual-direction testing regarding an audit of the accounts receivable andcash…
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Q: State one test of control and one substantive test of transactions that the auditor can use to…
A: Test of Control: It means testing and analyzing the control used and set by an entity to check the…
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: Which of the following audit procedures is aimed most directly at testing the completeness assertion…
A: For acco payable auditor should perform appropriate audit procedure for testing completeness…
Q: Recognize when to extend audittests of the general cash accountto test further for material fraud.
A: Definition:
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: When performing tests of controls over cash sales, an auditor would use observation to test whether…
A: When performing tests of controls over cash sales, an auditor would use observation to test whether…
Q: The following are commonly performed tests of controls and substantive tests of transactions audit…
A: Audit procedures are steps taken by auditors to obtain all information regarding the quality of the…
Q: In which of the following circumstances would the audit team most likely use attributes sampling?a.…
A:
Q: The following are audit procedures from different transaction cycles:1. Examine duplicate copy of…
A: Test of Control means the testing of internal controls to plan the further audit procedures.…
Q: To gather audit evidence about the proper credit approval of sales (i.e., valuation assertion), the…
A: Audit is the detailed process of checking and verifying books of accounts and financial information…
Q: Audit tests include tests of controls and substantive procedures. Substantive procedures can be…
A: Substantive Audit tests are performed to test the materiality of the elements. These tests are…
Q: In preparing for the audit of cash, the auditors perform analytical procedures concerning cash…
A:
Q: our interviews, observations, understanding of the process’ policies and procedures; you were able…
A: Auditing is the investigation, inspection, or examination of the financial statements of an…
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: Audit sampling should not be applied to which of the following audit procedures? A. Physically…
A: Audit sampling is the procedure that is applied to the selected item of the population to form an…
Q: Prospect Corporation, your new audit client, processes its sales and cash receipts in the following…
A: (A). Prospect corporation inc. Sales system flowchart Dec 31 ,20
Q: For which of the following tests would an auditor most likely use attribute sampling?(1) Selecting…
A: Attribute sampling: When an auditor is willing to evaluate the characteristics of a given population…
Q: The following audit procedures are included in the audit programfor the audit of the financial…
A: a.
Q: Choose the one correct answer. Which of the following Test of Controls is done to examine whether…
A: Auditing means the independent checking of company operation by outsider. Auditor is qualified and…
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…
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- Which of the following audit procedures is aimed most directly at testing the completeness assertion for accounts payable? Footing the list of accounts payable. Tracing shipping reports after year-end to related customer purchase orders and invoices. Examining underlying documentation for cash disbursements in the period after year-end. Tracing shipping reports issued on or before year-end to related customer purchase orders and invoices.Which of the following procedures would an auditor most likely perform in searching for unrecorded liabilities? A. Vouch a sample of cash disbursements recorded just after year end to receiving reports and vendor invoices. B. Compare a sample of purchase orders issued just after year-end with the year-end accounts payable balance. C. Scan the cash disbursement entries recorded just before year end for indications of unusual transactions. D. Vouch a sample of accounts payable entries recorded just before year end to the unmatched receiving report file.Which of the following tests of details most likely would help an auditor determine whether accounts payable have been misstated?a. Examining reported purchase returns that appear too low. b. Examining vendor statements for amounts not reported as purchases. c. Searching for customer-returned goods that were not reported as returns. d. Reviewing bank transfers recorded as cash received from customers.
- The following are commonly performed tests of controls and substantive tests of transactions audit procedures in the sales and collection cycle: Review the prelisting of cash receipts to determine whether cash is prelisted daily. Reconcile the recorded cash receipts on the prelisting with the cash receipts journal and the bank statement for a one-month period. Account for a sequence of shipping documents and examine each one to make sure that a related sales invoice exists. Account for a sequence of sales invoices and examine each one to make sure that a related shipping document exists. Compare the quantity and description of items on shipping documents with the related sales invoices. Trace recorded sales in the sales journal to the related accounts receivable master file and compare the customer name, date, and amount for each one. Examine sales returns for approval by an authorized official. Required Identify whether each audit procedure is a test of control or a…Which of the following audit procedures is a dual-purpose test, which tests the effectiveness of internal controls as well as any material misstatements in the financial statements? A. The auditor accounts for the sequence of sales invoices. B. The auditor selects a sample of transactions in the sales journal and traces them to the relevant shipping documents. C. The auditor adds the transactions in the purchase journal and agrees to the total amount recorded in the general ledger. D. A test over the bank reconciliation. E. The auditor obtains a sample of timesheets for casual employees and checks for evidence of approval.Indicate whether each of the following audit procedures is a testof controls, a substantive test, or a dual-purpose test. Next, indicate the financial statement assertion most closely related to each audit procedure. Required:a. Vouch recorded sales invoices to supporting shipping documents.b. Inspect recorded sales invoices for credit approval.c. Vouch recorded sales invoices prices to the approved price list.d. Send confirmations to all customers regarding accounts receivable.e. Recalculate the arithmetic accuracy of the recorded sales invoices.f. Compare the shipment date of recorded sales invoices with the invoice record date.g. Trace recorded sales invoices to posting in the general ledger control account and in the correct customer’s account.h. Select a sample of shipping documents from the shipping department file and trace shipments to recorded sales invoices.i. Scan recorded sales invoices and shipping documents for missing numbers in sequence.j. Vouch sales invoices and…
- In order to determine whether accounts payable are understated, auditors wish to obtain a sample of purchase transactions from suppliers and how they were recorded in the accounting books. � , sampling is the best mechanism to obtain this type of samples. a . discovery b . attributes c . random digits d . variablesThe CPAs test of detail transactions included the following auditing procedures which were undertaken for a selected test-month: CASH RECEIPTS: Reconciled credits per bank statement with receipts per book. Traced deposits to remittance advices. Traced totals to the general ledger. Footed the cash book. CASH DISBURSEMENTS: E. Compared cancelled checks with check register for name, signature, payee and endorsement. F. Footed check register G. Traced totals to the general ledger. H. Examined invoices, cash vouchers and other documents supporting disbursements (other than payroll disbursements) I. Reconciled recorded disbursements with charges per bank statement. Directions: Below are presented some of the more common methods of concealing shortages. For each of these items, indicate the letter of the auditing procedure listed above which most likely to uncover the shortage. If the answer is "NONE", so state on the space provided. No. Items ANSWER 1. Check included in petty cash…The following are commonly performed tests of controls and substantive tests of transactions audit procedures in the sales and collection cycle, acquisition and payment cycle, and inventory and warehousing cycle: Account for a sequence of shipping documents and examine each one to make sure that a duplicate sales invoice is attached. Compare the quantity and description of items on shipping documents with the related duplicate sales invoices. Trace a sample of voucher packages to the acquisitions journal throughout the year to determine that the transaction is included in the acquisitions journal. Determine if the transaction was recorded in the correct month, based on when the goods were received and the terms of the transaction. Required: Identify for each test the related cycle. Identify whether each audit procedure is a test of control or a substantive test of transactions. State which of the six transaction-related audit objectives each of the audit procedures fulfills.
