The following are examples of documentation typically obtained by auditors: Duplicate sales invoices Subsidiary accounts receivable records Vendors’ invoices General ledgers Title insurance policies for real estate Notes receivable Bank statements Cancelled payroll checks Cancelled notes payable Payroll time cards Required: Classify each of the preceding items according to type of documentation: (1) internal or (2) external

Q: Audit documentation often includes a client-prepared, aged trial balance of accounts receivable as…

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

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: To which customer is the auditor least likely to send a receivables confirn O customer whose account…

A: A confirmation is sent by auditor to verify whether actual balances match with the books or not.

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: The following are common tests of details of balances or analyticalprocedures for the audit of…

A: Account receivable balance-related audit objective: An appropriate audit evidence an auditor…

Q: Assume that your audit partner has asked you to design detailed substantive testing programs for the…

A: Considerable testing is a review technique that looks at the fiscal reports and supporting…

Q: Items 1 through 8 are selected questions typically found ininternal control questionnaires used by…

A: We will answer only first two sub-parts of this question as it is not mentioned which sub-part is to…

Q: A client has a separate sales group for its largest “preferred” customers, a select group of…

A: Given case is: A client has a separate sales group for its largest “preferred” customers, a select…

Q: Explain why an auditor compares the “date of deposit accordingto the books” to the “date of…

A: Typically, the phrase audit applies to an audit of the financial statement. A financial audit…

Q: When planning to perform an audit, an accountant must have a clear understanding of audit risk and…

A: Audit risk It is the risk that financial statements are materially incorrect, even though financial…

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: Which of the following types of documentary evidence should the auditor consider the most reliable?…

A: Auditing: Auditing is the process by which assertions made by management about financial…

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: In order to make sure that loans are properly classified, the auditor would:   a. Examine due…

A: Audit is an independent examination of the financial staemetnts of an entity to present a true and a…

Q: Which of the following substantive procedures would auditors most likely perform to obtain evidence…

A: Answer:   Option b

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: Confirmation of Trade Accounts Receivable. L. King, CPA, is auditing the financial statements of…

A:

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: Evidence comes in various types and has different degrees of reliability. Below are some pairs of…

A: The auditors are professional who possesses accounting, auditing, and taxation expertise. The…

Q: Which of the following types of audit evidence can be considered the least reliable? a. Purchase…

A: Audit evidence is the data and information which is collected by an auditor by examining the…

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: Audit tests include tests of controls and substantive procedures. Substantive procedures can be…

A: Step1   Sufficiency depicts the quantity of audit evidence and Appropriateness is depicts the…

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

A: Audit Evidence: It refers to the information that the auditor uses in arriving at a conclusion on…

Q: An audit trail enables a person to trace a source document to its ultimate effect on the financial…

A: Audit trails are manual or electronic records that are chronologically defined events to provide…

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: Explain why each of the following combinations of tasks should, or should not, be separated to…

A: Ethics:   Business ethics refers to a set of moral codes and guidelines that governs corporate…

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: 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: Which of the following procedures will an auditor most likely perform for year-endaccounts…

A: Answer:   Option 3.

Q: Control risk is the risk that a material misstatement in an account will not be prevented or…

A:

Q: Which of the following is the best audit procedure for determining the existence of unrecorded…

A:

Q: The following are typical questions that might appear on an internal control questionnaire for…

A: Internal controls: Internal controls are designed and implemented by management for effective and…

Q: For each of the following audit procedures, state which type of evidence-gathering technique is…

A: As per our protocol we provide solution to the first three sub-parts only but you have asked…

Q: emphasis of the auditor in the following audit procedures?

A: Option 1 is wrong because by confirming the total amount of accounts payable subsidiary record with…

Q: The following are two specific balance-related audit objectives inthe audit of accounts payable. The…

A: Audit is an assessment of the financial statements in which, an independent auditor checks whether…

Q: To gather audit evidence related to accounts receivable, the client should mail the confirmation…

A: Auditor: An auditor is a person or a group of people who is responsible for conducting an audit of…

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: The following are five situations,

A: Six factors that determine the reliability of the evidence as follow: Independent external source:…

Q: The following audit procedures are included in the auditprogram because of heightened risks of…

A: a.

Q: The following are typical questions that might appear on an internal control questionnaire for…

A: Internal controls: Designing and implementing internal controls is the responsibility of the…

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: Which one of the following would the auditor consider to be an incompatible operation if the cashier…

A: Incompatible Operation in Cash Receipts: The mailroom is using for receiving the checks and after…

Q: Audit evidence can come in different forms with different degrees of persuasiveness.Which of the…

A:

Q: The following questions concern types of audit tests.Choose the best response.a. The auditor looks…

A: Answer:   Option 2.

Q: The following general ledger accounts are included in the trialbalance for an audit client, Jones…

A: Cycle Balance sheet Accounts Income statement accounts Sales and collection Cash Accounts…

Q: Items 1 through 6 are questions typically found in a standardinternal control questionnaire used by…

A: a.

Q: All allowances to customers for returned or defective merchandise should be supported by serially…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…