which of the following is the least appropriate detail to document in test work template for a search for unrecorded liabilities substantive procedure? 1. the date goods were received or services were rendered for each sample item tested 2. the sampling method used to select the sample items for testing 3. the supplier name for each sample item tested 4. a misstatement identified due to an over-accrual of property

which of the following is the least appropriate detail to document in test work template for a search for unrecorded liabilities substantive procedure? 1. the date goods were received or services were rendered for each sample item tested 2. the sampling method used to select the sample items for testing 3. the supplier name for each sample item tested 4. a misstatement identified due to an over-accrual of property

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter8: Specialized Audit Tools: Attributes Sampling, Monetary Unit Sampling, And Data Analytics Tools

Section: Chapter Questions

Problem 7CYBK

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In which of the following circumstances would the audit team most likely use attributes sampling?a. Selecting customer accounts receivable for confirmation.b. Selecting inventory items for verification of physical quantities.c. Selecting purchase orders for indication of proper authorization.d. Selecting additions to property, plant, and equipment during the year.
For which of the following tests would an auditor most likely use attribute sampling?(1) Selecting accounts receivable for confirmation of account balances.(2) Inspecting employee time cards for proper approval by supervisors.(3) Making an independent estimate of the amount of a LIFO inventory.(4) Examining invoices in support of the valuation of fixed asset additions.
For which of the following audit tests would an auditor most likely use attribute sampling? Making an independent estimate of the amount of FIFO Inventory. Examining invoices in support of the valuation of fixed asset additions. Selecting accounts receivable for confirmation of account balances Inspecting employee time cards for proper approval by supervisors.
Which of the following best describes why auditors audit leased assets in conjunction with the audit of property, plant & equipment? Multiple Choice (B & D are incorrect) A. Most leased assets should be capitalized. B. Repairs and maintenance expense is affected by leased assets. C. Management may choose to lease assets rather than buy them. D. Leased assets have a higher risk of misstatement.
An auditor discovered the following matters while performing tests of controls: 2.A purchase of raw materials was recorded as a purchase of supplies. Required: a.What control would have prevented or detected each of the above misstatements? b.What test should the auditor perform to test the control? c.To which financial statement assertion does the misstatement relate?
Complete the statement. The lower the risk of material misstatement, a. the greater the maximum tolerable misstatement b. the higher the audit risk required. c. the later in the year that principal audit test procedures are performed d. the smaller the sample size needed for substantive testing
In performing risk assessment procedures for property, plant and equipment, an auditor may inquire of the client personnel which of the following questions? a. Is depreciation calculation and recording automated? b. Is there periodic physical count and tagging of property, plant and equipment? Is the result of the count reconciled to ledgers and general ledgers? c. Both a and b. d. Neither a nor b. Group of answer choices a c b d
Audit sampling should not be applied to which of the following audit procedures? A. Physically inspecting items of plant and equipment. B. Inspecting purchase acquisition forms for any evidence of approval. C. Calculating accounts payable turnover ratio and ensuring that it is reasonable compared with the previous year. D. Performing substantive tests for the occurrence of sales. E. Performing external confirmation of cash payable.
Which of the following steps involved with determining the upper limit on misstatements is ordinarily performed earliest?a. Multiply the sampling interval by the tainting percentage.b. Determine the audited value of the item and compare it to the recorded balance.c. Calculate the basic allowance for sampling risk.d. Calculate the incremental allowance for sampling risk.
In an audit sampling application, an auditora. Performs procedures on all items in a balance and makes a conclusion about the entirebalance.b. Performs procedures on less than 100 percent of the items in a balance and formulates aconclusion about the entire balance.c. Performs procedures on less than 100 percent of the items in a class of transactions tobecome familiar with the client’s accounting system.d. Performs analytical procedures on the client’s unaudited financial statements when planning the audit.