List the transaction-related audit objectives for the audit of salestransactions. For each objective, state one internal control that the client can use toreduce the likelihood of misstatements

Q: Which of the following management assertions is an auditor most likely testing if the audit…

A: Management Assertion:   Management assertion refers to the claim made by the management assuring…

Q: Auditing Sales/Revenue Transactions When an auditor needs to obtain an understanding of the overall…

A: Management Assertions: For financial records and disclosures to be accurate and suitable, assertions…

Q: itor needs to obtain an understanding of the overall internal control of a company, the auditor…

A: Auditor refers to the individual or an entity whose job is to check and collect all the data and…

Q: Auditing Sales/Revenue Transactions When an auditor needs to obtain an understanding of the overall…

A: Management is the management of an institution, whether it be a corporation, a semi, or a federal…

Q: The purpose of an audit trail is to be able to trace a transaction from its original through source…

A: The audit trail for goods returned by customers means checking whether the goods which are returned…

Q: For each of the accounts balances and associated assertions below, select the audit procedure from…

A: Auditing procedures are those which are step by step followed by the auditor in evaluating the…

Q: Explain the difference between an attribute and an exceptioncondition. State the exception condition…

A: Introduction: Auditing: The process through which the financial information reported in the…

Q: Distinguish among tests of details of balances, tests of controls,and substantive tests of…

A: Substantive Testing: It is an audit procedure that helps examine the supporting documents and…

Q: To test the operating effectiveness of a control, an audit team might use a combination ofeach of…

A: Internal control: It can be defined as a system that includes the policies, rules, and procedures…

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: The auditor is verifying whether all goods received by the company have been recorded appropriately.…

A: Auditor is one who audits the financial statement of company so as to provide fair view on the…

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: 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: 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: a) 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: What is the purpose of analytical reviews in the audit of revenue cycle accounts? Please give an…

A: An analytical review is used by auditors to assess the reasonableness of account balances. A CPA…

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: What are the goals of dual-direction testing regarding an audit of the accounts receivable andcash…

A:

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: A key internal control over the acquisition cycle is to ensure that the company requires recording…

A: Solution: A key internal control over the acquisition cycle is to ensure that the company requires…

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: onducting which of the following steps, the auditor can obtain sufficient and appropriate audit…

A: The sufficiency and appropriateness are the two components based on which the auditor decides on the…

Q: Apply your knowledge to perform audit procedures in the revenue and collection cycleand evaluate the…

A: sales and collection cycle:- in business it refers to the set of processes that begin when a…

Q: What is the primary purpose of analytical procedures performed during the planning stages of the…

A: Solution: Analytical Procedures refers to the evaluation of financial information via identifying…

Q: audit objectives is usually more important

A: Audit of existence is the process of ensuring whether the accounts payable balance in the ledger…

Q: To obtain an understanding of the relevant policies and procedures of internal control, the auditor…

A: INTERNAL CONTROLS ARE THE RISK MITIGATION STEPS TAKEN TO STRENGTHEN THE ORGANIZATION'S SYSTEMS AND…

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: 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: state whether each of the following terms is correct or incorrect and correct the false one:…

A: An audit is a thorough scrutiny of the books of accounts and related documents of an entity.

Q: Explain the role of sales volume, cost, and profitability in an audit? How do sales volume, cost,…

A: Sales Volume Audit analysis means a study of the net sales section of the profit and loss statement.…

Q: When evaluating inventory controls, an auditor would be least likely toa. Inspect documents.b. Make…

A: Auditing:   In auditing, auditors verify the correctness and fair presentation of financial…

Q: By conducting which steps, the auditor can obtain sufficient and appropriate audit evidence…

A: Sometimes due to the nature of Business sometimes the inventory held by the business is under the…

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

A: Accounts receivables include those consumers or firms which have not paid the amount to the…

Q: Required For each of the questions above, answer the following: a) State the purpose of the internal…

A: Here asked for multi sub part question we will solve for first three sub part question for you.  If…

Q: Explain the importance of proper credit approval for sales. Whateffect do adequate controls in the…

A: Auditing is a process which is used by audit professionals to review or analyze the transactions and…

Q: Indicate a specific audit procedure under each of the following categories, as applied particularly…

A: Audit:   It is a procedure for examining a company's financial statements. The goal of auditing is…

Q: 5. The computer assigns a number to every sales invoice. Which management assertions apply to this…

A: Managing  assertions are claims made by management members regarding certain aspects of a business.…

Q: At the completion of an inventory observation, the controllerrequested the auditor to give him a…

A: Given case is: At the completion of an inventory observation, the controller requested the auditor…

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: Assuming that the auditor properly documents receiving reportnumbers as a part of the physical…

A: Cut off procedures are those procedures in which the departments in the business would have their…

Q: Auditors identify and assess the risk of material misstatement at these two levels Select an answer…

A: According to SA 315, Auditor should assess about the business environment and the entity controls of…

Q: The following audit procedures are included in the audit programfor the audit of the financial…

A: a.

Q: Which of the following audit techniques ordinarily would provide an auditor with the least assurance…

A: Test of controls -  Test of controls is the audit procedure that tests the effectiveness of the…

Q: Identify important internal control activitiespresent in a properly designed system tomitigate the…

A: Internal control activities to mitigate risk in revenue and collection cycle: 1. Monthly…

Q: What three types of authorizations are commonly used as internalcontrols for sales? For each…

A: Meaning of Internal Control Internal controls are the activities which an organization implements to…

Q: Below are five audit procedures, all of which are tests of transactions associated with the audit of…

A: The audit objectives have been defined as below A.  Occurrence-to ensure the existence of given…

Q: Which of the following tests of controls is most useful in assessing the transaction-related audit…

A: The audit is a thorough and critical review of the company's account books. Auditing would be…