The audit of revenue recognition generally involves significant audit risk for all of the following reasons, except Multiple Choice

Q: effectiveness of audit

A: An audit is performed by auditor to express an independent opinion on financial statements whether…

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: What types of matters would result in the auditors’ report being modified for consistency?

A:

Q: Which of the following statements best describes auditors’ responsibility for detecting a client’s…

A:

Q: What is an example of audit procedure when performing an accounts payable risk assessment for…

A: Auditing of Accounts Payable Accounts Payable is considered to be one of the important part in the…

Q: Describe TWO audit procedures that would provide evidence over the completeness of revenue.

A: Audit: Audit is the process of verification of the compliance of the financial statements.

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: Discuss the possibility of substantial misstatement throughout the revenue and collection cycle,…

A: This question explains about  the revenue and collection cycle, with an emphasis on erroneous…

Q: Why do auditors focus on revenue as a significant account and the occurrence of revenue as a…

A: Revenue cycle records all the transactions that originate from selling a product and lead to…

Q: Whether the act of overstating in revenue is considered and classified to be a significant risk.…

A: Revenue: Revenue is income earned by a firm selling its goods and services to other parties. The…

Q: Which of the following is not an assurance engagement?* Tax services Financial statement audit…

A: Assurance engagement are those agreements or engagements in which engaged person expresses a…

Q: Provide two inherent risk factors in the revenue cycle and identify the accounts that are likely to…

A: RCM (revenue cycle management) is a procedure used by healthcare systems in the United States and…

Q: ZZZ best fraud case, auditors obtained third party confirmation to support the contract, reviewed…

A: Audit procedure: Auditor applies procedures to perform audit engagement. These procedures include…

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 audit assertions and internal controls deal with the following and how are the assertions and…

A: Assertions: These are the claims made by the management regarding certain financial information and…

Q: substantial misstatement throughout the revenue and collection cycle, with a particular emphasis on…

A: As per IFRS 15 revenue should be recognized as per the 5 step model as explained in the standard:…

Q: According to auditing standards, financial statements presented on a special-purpose framework…

A: According to auditing standards, financial statements presented on a special-purpose framework…

Q: In auditing receivables, what are the audit objectives and how would you be performed to arrive at…

A: Auditing implies an exhaustive and formal review of your records. Auditors give extraordinary…

Q: audit evidence

A: Dear Student,  Indian Standard on auditing 500 deals with " Audit Evidence" .   as per this standard…

Q: Discuss the risk of material misstatement in the revenue and collection cycle, with a specific focus…

A:

Q: Discuss the objectives of eliminating receiving functions. Also, discuss the accounting and audit…

A: Step 1 When shipments of goods arrived at the warehouse to replenish stocked inventory, then the…

Q: What are the most common revenue-recognition abuses identified by auditors?

A:

Q: Which of the following approaches is most suitable for auditing the finance and investment cycle?a.…

A:

Q: What types of audit procedures are typically performed in testing operating effectiveness of…

A: Test of Controls: The test of controls includes the procedures that are developed to generate…

Q: b. Existence and completeness objectives. c. Existence, realisable-value and accuracy o

A: The right answer is c. Existence, realizable-value and accuracy objectives.

Q: Under what circumstances would an auditor choose to confirminformation such as the right of return…

A: The right of return is the right to the customer to return the product to the supplier. The goods…

Q: Which of the following does NOT accurately describe the concept of materiality? O performance…

A: The Materiality refers to the relevance, accuracy and reliability of the financial statements of thr…

Q: Which type of service may not need an audit opinion or review conclusion from auditors? Select all…

A: An audit engagement is an arrangement between an auditor and client to perform an audit and express…

Q: Which of the following is not a scope of internal auditors? Efficient Use of Resources Should work…

A: Internal auditors are the professionals appointed by the businesses to ensure the operational…

Q: List the transaction-related audit objectives for the audit of salestransactions. For each…

A:

Q: List the revenue cycle audit objectives derived from the “existence or occurrence” management…

A: Assertion: management asserts that the information provided by them is complete , exist , correctly…

Q: Explain the relationship betweenaudit objectives and theaccumulation of audit evidence.

A: Auditing: Auditing is defined as the independent verification and examination of the financial…

Q: audit risk

A: Audit risk is the risk that the auditor may gives an inappropriate audit opinion when the financial…

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: 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: Discuss the objective of eliminating the receiving function.What accounting/audit problems need to…

A: Auditing is the process of ensuring that an entity's financial records are correct and fairly…

Q: Why do auditors focus on completeness of expenditures as a significant account and relevant…

A: Management assertions are the facts which are applied by the management while preparing the…

Q: essentially describe what materiality means in the context of the audit.

A: The most typical type of audit is a financial statement audit. A financial audit is an objective…

Q: Give examples of tests of controls to test theoperating effectiveness of internal controlsin the…

A: Test of Controls: The test of controls includes the procedures that are developed to generate…

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: Which of the following is NOT an assertion relating to 'general presentation and disclosure-related…

A: Management is responsible for the fair presentation of financial statements as per the applicable…

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: when auditing VAT payable account, what are the considerations that you need to remember and…

A: Auditing refers to the process of examining or inspecting the several books of accounts by an…

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.