Which of the following audit procedures probably would provide the most reliable evidence related to the entity’s assertion of rights and obligations for the inventory account?a. Trace test counts noted during physical count to the summarization of quantities.b. Inspect agreements for evidence of inventory held on consignment.c. Select the last few shipping advices used before the physical count and determine whether the shipments were recorded as sales.d. Inspect the open purchase order file for significant commitments to consider for disclosure.

Q: Dodge, CPA, is auditing the financial statements of amanufacturing company with a significant amount…

A: Trade account receivables are the payments which the customer owes to the company. They arise when…

Q: If the auditor conducts test of the inventory controls at an interim date, is it appropriate to…

A: As a part of audit procedure test of controls are used to test the effectiveness of a control used…

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: A typical substantive procedure for receivable balance and sales transactions may include…

A: The question is related to the Substantive audit procedures.Substantive audit procedures are the…

Q: Which of the following automated application controls would offer reasonable assurancethat inventory…

A: Auditing is a gathering of information and evaluation of evidence as to report on the degree of…

Q: Which of the following procedures would an auditor most likely perform in searching for unrecorded…

A: Account payable  means the amount owed by business to outsider for the goods received and services…

Q: Which of the following audit procedures is a dual-purpose test, which tests the effectiveness of…

A: A dual-purpose test is an audit method that serves as a control and substantive test at the same…

Q: Which of the following audit procedures is the best test of the accuracy, valuation and allocation…

A: An inventory audit is an audit where an auditor cross-checks the inventory records with the…

Q: Completeness

A: Correct answer :- B Completeness

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

A: Source Documents - Source documents are the document using which auditor can check the genuineness…

Q: An auditor will most likely review an entity’s periodic accounting for the numerical sequence of…

A: Completeness represents that assets and liabilities are recorded and proper disclosure has been made…

Q: A typical substantive procedure for receivable balance and sales transactions may include…

A: Assertions: Assertions are used by the auditor to consider the different types of misstatements that…

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: An auditor usually traces the details of the test counts made during the observation of physical…

A: An auditor traces the details of test counts of physical inventory to final inventory compilation in…

Q: In auditing the client’s receivables, the auditor decided to select entries in the sales journal and…

A: Assertion of Existence: Assets or liabilities of the company exist at a given date, and recorded…

Q: The following audit procedures are consistent with gathering evidence about the valuation assertion…

A: Accounts Receivables are those accounts of customers to whom business has made credit sales on…

Q: When an audit team traces a sample of shipping documents to the related sales invoice copies, they…

A: Accounts Receivables: Accounts receivables are those accounts that occur due to incomes for which…

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: Payable ICQ Items: Assertions, Tests of Controls, and Possible Errors or Frauds. Following is a…

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

Q: If you are an auditor and assigned to audit inventory. So as an auditor 1. How do you ensure that…

A: Honor Code: Since you have posted a question with multiple sub-parts, we will solve the first 3…

Q: Auditing an attestation client's inventory accounts can vary widely in complexity and time required…

A: Inventory accounts are audited to report on the true and fair state of inventory balances on a…

Q: The following audit procedures are consistent with gathering evidence about the valuation assertion…

A: Accounts receivables are those accounts to whom business has made credit sales on account and amount…

Q: During an operational audit, Lily, an audit staff assigned to a company’s major subsidiaries,…

A: Inventory turnover refers to the rate at which a business replaces inventory as a result of sales in…

Q: For each of the audit procedures listed below state the primary ‘Assertion’ and the related…

A: Audit Assertion Financial statement account 1 Review and test the procedures for identifying…

Q: Before expressing an opinion concerning the audit of income and expenses, theauditor will best…

A: Auditing:   Auditing refers to an independent examination of financial information of any…

Q: A typical substantive procedure for receivable balance and sales transactions may include…

A: Specifically disclosed in noes to accounts also , in income statements

Q: Which of the following will be the most appropriate test to determine wherether purchase orders are…

A: Purchase order: Purchase order is a document send by a buyer to seller indicating all the…

Q: which of the following account will be least likely involved in the purhasing sub-process of the…

A: Purchasing of transaction involves checking at various stages such as receiving the goods and…

Q: To gather audit evidence about the proper credit approval of sales (i.e., valuation assertion), the…

A: Audit is the detailed process of checking and verifying books of accounts and financial information…

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

A: The question is related to the Auditing. Itbis related with the technique used to gathering…

Q: Which of the following is NOT an independent verification control?a. The shipping department…

A: Answer:   Option d.

Q: goal of this substantive audit procedure

A: Option b is wrong because for determining the proper recording of purchases, there is no need to…

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: Which of the following internal control activities most likely addresses the completeness assertion…

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

Q: Which of the following procedures would best prevent or detect the theft of valuable items from an…

A: Definition:

Q: Which of the following audit procedures is a test of control?

A: The audit is the process of the official inspection of the books of accounts of a company. There are…

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: Which of the following audit procedures would an auditor most likely perform to test controls…

A: An auditor must check the shipping documents that have not been recorded in sale journal to conform…

Q: Which of the following is the best reason for prenumbering in numerical sequence documents such as…

A: Prenumbering of documents like shipping documents, sales invoices, and sales order means providing a…

Q: How does inventory control deficiencies affect the development of audit procedures for inventories

A: Answer: The audit procedures are to be designed such that the total audit evidences can be…

Q: As the auditor of Sample Limited you note the following matters relating to the internal control of…

A: Internal control is a system of organizing the company in which a set of rules, policies, and…

Q: List two examples of audit evidence the auditor can use in supportof each of the following:a.…

A: Auditing: It is an independent process of inspection, verification, examination of financial…

Q: Choose the one correct answer. Which of the following Test of Controls is done to examine whether…

A: Auditing means the independent checking of company operation by outsider. Auditor is  qualified and…

Q: (Substantive tests and audit evidence) In meeting the third standard of field work, the auditor may…

A: Auditors employ the test of details to verify the specifics of particular transactions or balances.…

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: internal control of its sales

A: Internal control system is a set of rules and activities to be adhered during the conduct of…

Q: A typical substantive procedure for inventory balance and purchase transactions may include…

A: Should disclose separately in Financial statements and notes to accounts

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.