Question 15 Confirmations of individual accounts receivables balances directly with debtors will normally provide evidence regarding: Collectability Proper valuation of NRV. Existence of balances confirmed. Internal control over balances confirmed

Q: The auditor considers materiality from the point of ___________ a. individual account balance b.…

A: SOLUTION- WHEN ESTABLISHING THE OVERALL AUDIT STRATEGY , THE AUDITOR DETERMINES MATERIALITY FOR THE…

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: Members of the audit engagement team are required to discuss the susceptibility of the entity's…

A: Audit frauds are conducted to hide the actual position of the financial statements of the company to…

Q: Comment on the extent to which results from a negative confirmation may be relied upon to verify the…

A: Ans. Positive confirmation is an auditing enquiry that requires the customer to confirm the accuracy…

Q: Which of the following assertions is least likely tested by bank balance confirmation? * Existence…

A: Assertions: Management's claims that the financial statements provided are correct are referred to…

Q: 10. The inspection of a vendor's invoice by the auditors is:  Select one: a.  Direct evidence…

A: Solution:- Introduction:- An auditor is a person elected by the organizations performing audit of…

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: Which of the following is a reason that auditors consider any debt covenants? O to determine the…

A: The question is related to Auditing. Debts covenants are certain restrictions that are imposed by…

Q: f the auditor believes that a misstatement is or might be intentional and the effect on the…

A: Auditor: The auditor is the professional person who is appointed to conduct the official scrutiny of…

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: 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: 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: Confirmations of individual account receivable balances direct with debtors will normally provide…

A: Direct party confirmations are part of audit procedure while gathering audit evidence regarding…

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: Financial audit Q&A What is the risk that arises because the auditor is unable to find misstatements…

A:

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: S1: One of the elements of audit planning process most likely to be agreed upon with the client…

A: The question is related to Auditing. Audit planning process is the steps that are to be followed by…

Q: Which control activity is the entity implementing when credit and debt memorandums are prenumbered…

A: Control activities helps in assuring that necessary actions are taken to address risks to the…

Q: ISA 240 the Auditor’s responsibilities relating to Fraud in an audit of financial statements,…

A: Part (i): The purpose is what distinguishes fraud from error. In s imple terms, fraud is a…

Q: A transaction level internal control activity is best described as:     An action taken by…

A: A transaction-level internal control activity can be labeled as action taken by customer personnel…

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: 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: 3. In the audit of loans payable, which of the following audit procedure would be most likely…

A: Answer: Audit procedures are performed to test the assertions for the financials. The assertions are…

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: would help an auditor determine whether accounts payable have been misstated?     Examining…

A: Accounts payable (AP) is the sum owed to creditors and suppliers by a corporation (also referred to…

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: The write-off of defaulted notes receivable must be approved in writing by the accountant of the…

A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined…

Q: Question 3 State the principal aspects which the statutory auditor should look into before framing…

A: The principal aspect which an statutory auditor has to look into before framing an opinion on…

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: The following are specific balance-related audit objectives applied to the audit of accounts…

A: The importance of assertions in auditing cannot be overstated. In the auditing process, assertions…

Q: 12. The practitioner's independence is not required in which of the folle engagements? A. Audit of…

A: Audit engagement is defined as the arrangement which auditor has with the client to conduct audit of…

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: The auditor shall express ________opinion when he concludes that there are possibilities of material…

A: An adverse opinion is defined as the professional opinion, which is used to prepare an auditor…

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: In the audit of financial statements, an adverse report is issued when the CPA believes: a. the…

A: An adverse opinion is a professional opinion made by an auditor indicating that a company's…

Q: evidence obtained

A: Correct answer :- False.

Q: The auditor must mail cash confirmations, but the client may mail long-term debt confirmations.…

A: The given statement is True....

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: 12. The audit of revenue and receivables is of significant audit risk because Select one: a. The…

A: Audit risk arises from error and fraud and because of the inherent limitation of audit, it is…

Q: allowance for doubtful

A: Correct answer :- Right and Obligations.

Q: Question 23 Which of the following statements is correct regarding accounts payable and the…

A: Find your answer below:

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.