The manager of ABC SAOG is presently out of country for business purpose. The company has produced photocopies of fixed deposits receipts. The original fixed deposit receipts were kept in the locked iron safe of the manager. As an auditor what step can be taken? Mention the case in the auditors opinion Withdraw from the audit if legally permissible Modify the audit report Obtain external confirmation from bank manager

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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: The manager of ABC SAOG is presently out of country for business purpose. The company has produced…

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Q: Assume that Brooke Miles, accounts payable clerk for West Coast Design Inc., stole $48,350 by paying…

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Q: 8.During an audit of a retail company, Lily, newly hired internal auditor, found a scheme in which…

A: solution in the given case there was a fraud scheme in which the warehouse manager and a purchasing…

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: When an auditor sends out bank confirmations at the year-end audit, they are performing a(n) O…

A:

Q: Which of the following is least indicative of fraudulent activity?a. Numerous cash refunds have been…

A: Answer:   Option C

Q: Auditors are auditing the cash receipts for Great Wall Corporation. For each audit procedure…

A: Audit Procedure: Audit Procedures are actions conducted by auditors to acquire all the information…

Q: 2. Which technique would be most effective and efficient for testing the operating effectiveness of…

A: The bank reconciliation statement is the statement that is prepared to rectify the errors between…

Q: ou are auditing Hawthorne Industries. The preliminary risk assessment resulted in a high potential…

A: Here discuss the details of the main assertion which are related with the Travel expenses audit by…

Q: Choose the one correct answer. Which of the following is not an appropriate question in an ICQ? *…

A: Internal Control Questionnaire -ICQ : ICQ is an important tool for conducting an audit. It is…

Q: Dean Tomaszczyk was training junior audit staff and mentioned the importance of third party…

A: External Confirmation It is the process of receiving and analysing audit evidence from a third party…

Q: Your firm is the external auditor of Downe Ltd (Downe). It has accepted a non-audit engagement to…

A: Requirement 1 (1) Managers at the shops regularly used cash from the cash register to pay local…

Q: This is your first month working as a bookkeeper and you notice a discrepancy when trying to…

A: How would you handle this situation.  Answer: This is an ethical dilemma that involves a conflict of…

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: What is wrong in the following scenario? Jack O.A. Trade is an accountant is a small enterprise.…

A: In the provided scenario, the accountant retains the authority over all cash and other enterprise…

Q: Whole Fruits Market took the following actions to improve internal controls. For each of the…

A: Internal control are department that provide reasonable assurance of effectiveness and efficiency…

Q: When in an examination of a retail firm, Lily, a recently recruited internal auditor, discovered a…

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Q: List four possible unsatisfactory combinations of the above-listed functions.

A: Segregation of duties:   In the internal control process, one individual should not perform more…

Q: Jake, your staff auditor, will be performing the test of interbank transfers.  He plans to compare…

A: Through inter bank transfers, money can be electronically sent from a sender's account at one bank…

Q: Which of the following circumstances would most likely cause an audit team to performextended…

A: Audit procedures: These are the methods, techniques, and processes that are performed by the auditor…

Q: Identify which control activity is violated in each of the following situations and explain how the…

A: Employees have physical custody of assets but do not have access to accounting records –…

Q: During the preparation of the bank reconciliation for Apache Grading Co., Sarah Ferrari, the…

A: Integrity refers being honest and true and making right decisions; even if, such decision making is…

Q: A client has a large and active investment portfolio that is kept in a bank safe deposit box. If the…

A: A specific procedure undertaken by an auditor to procure evidence in a particular audit engagement…

Q: An auditor suspects that certain client employees are ordering merchandise for themselves over the…

A: responsibility of the company to disclose all the fact and the figure related to the audit of…

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

A: Answer:   Option 3.

Q: You are testing the controls over bank accounts for your audit client, Orleans Ltd. You note that…

A: Bank Reconcilation: It is the process of reconcilation of an entity's bank account with its…

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Q: The following matters were noted in the audit of Tools N Things: a. An order was never billed…

A: Control Test of control FS assertion Pre-numbered shipping documents are accounted for to…

Q: For each case, state the type of audit opinion which should be expressed and provide an explanation…

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Q: Which of the following is not a generally recognized internal control activity? Oa. limiting access…

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Q: As one of the year-end audit procedures, the auditor instructed the client's personnel to prepare a…

A: Bank confirmations are part of audit procedures. At every year bank balance as per cash book should…

Q: Assume you are a new hire in the accounting department of an organization. One of your…

A: Bank reconciliation statement (BRS) It  matches  the balance as per bank statement with the…

Q: A bank reconciliation should be prepared periodically because Oa. the company's records and the…

A: Introduction Bank Reconciliation Statement is a Comparison between cash reported in bank statement…

Q: Allison Everhart, an employee in accounts payable, believes she can run a fictitious invoice through…

A: Fraud is the act of deliberately conducting false reporting of facts, to acquire funds or property…

Q: You are the auditor for Konerko’s Office Supply Store, which is opening for business next week. The…

A: Skimming means taking cash of a business before it is entered in the accounting system. In The…

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: Didrikson Rubin, the auditor of Red Barn Farm Equipment, was verifying cash payments to vendors for…

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Q: In your audit of Ginko Company, you have received a cash confirmation and a cutoff statement from…

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Q: While assistant treasurer of Travco Corporation, Frank Mitchell caused two checks, each payable to a…

A:

Q: Which of the following controls would be most effective in detecting a failure torecord cash…

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Q: In the audit of a client with a fiscal year ending December 31, the CPAs obtain a January 10 bank…

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

A: The following are the audit procedures Inspecting non-current/fixed assets An item of…

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.