Which of the following tests of details most likely would help an auditor determine whether accounts payable have been misstated?a. Examining reported purchase returns that appear too low. b. Examining vendor statements for amounts not reported as purchases. c. Searching for customer-returned goods that were not reported as returns. d. Reviewing bank transfers recorded as cash received from customers.

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: The official receipt reports a higher amount of cash collected while the corresponding sales invoice…

A: Solution A lapping scheme is a fraudulent practice that involves altering accounts receivables to…

Q: Which of the following is not an objective of the cash audit? determine that a. A long-term…

A: Objectives of Cash Audit One of the objectives for a cash audit is to verify that the recorded cash…

Q: Cash receipts from sales on account have been misappropriated. Which of the following acts would…

A: An auditor is an individual approved to survey and check the precision of budgetary records and…

Q: Preparing the bank recociliation is consifered to be an important step in interna; control process…

A: Bank reconciliation refers to the process of reconciling the balances of the accounting records of…

Q: What is the process of confirming accounts receivable balances. Why is it important for auditors to…

A: The main objective of the auditor is to provide an opinion on the financial statement audited. The…

Q: Which of the following statements is invalid relating to confirmation of accounts receivable?  a. A…

A: Solution: Positive confirmation means inquiry that requires response from customer confirming the…

Q: Which of the following fraudulent activities most likely could be perpetrated due to the lack of…

A: The auditor Is responsible for forming an opinion on the financial statement and the main reason for…

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: When an audit team does not receive a response on a positive accounts receivable confirmation,…

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

Q: List the transaction-related audit objectives for the verificationof cash receipts. For each…

A: Audit objectives for verification of cash receipts are- Recorded sales Database management…

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: 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: 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: 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: you are auditing accounts receivable balances to confirm sales and found significant discrepancies…

A: Sales confirmations from customers means sending letters to customers requesting them to confirm the…

Q: basic step in auditing unclaimed salaried and wages is to verify disposition of the account…

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

Q: In an audit of cash receipts, fraud detection is often a primary focus. It's up to the auditor to…

A: In this audit, the auditor focuses on cash since it is the most liquid asset of the organization.…

Q: Which of the following procedures would most likely be performed during planning?a. Surprise…

A: Identifying related parties would most likely be performed during planning.

Q: Which of the following reports can improve internal control by tracking unauthorized changes to…

A: Solution: An audit log is a IT record that record sequence of activities in the system at any time…

Q: Choose the one correct answer Which of the following statements is valid relating to confirmation…

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

Q: The following are deficiencies in internal controls over cash. For each deficiency indicate what…

A: “Since you have posted a question with multiple sub parts, we will solve first 3 sub parts for you.…

Q: Explain why auditors usually emphasize the detection of fraud inthe audit of cash receipts. Is this…

A: The auditor focuses on cash as it is the very high liquid asset of the company, hence there is a…

Q: Which of the following statements is invalid relating to confirmation of accounts receivable?  a. A…

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

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

A: Answer:   Option 3.

Q: • Confirmation of accounts receivable that have been categorized initially by an auditor as…

A: Accounts receivable is the amount which is due from the customers for the goods sold on credit…

Q: When performing tests of controls over cash sales, an auditor would use observation to test whether…

A: When performing tests of controls over cash sales, an auditor would use observation to test whether…

Q: Explain why, in verifying bank reconciliations, most auditorsemphasize the possibility of a…

A: Auditing refers to an independent examination of financial information of any organization. The sole…

Q: Which of the following statements is associated with analytical procedure test? a. It helps to…

A: Analytical procedures involve comparisons of recorded amounts, or ratios developed from recorded…

Q: Which of the following would provide an auditor with the most reliable evidence reguarding the…

A: most reliable evidence reguarding the existence of accounts receivable:

Q: Which of the following evidence provides the least assurance of reliability? A. Accounts receivable…

A: Audit evidences can be collected from internal and external sources. Internal evidences are based on…

Q: The expense cycle offers employees many opportunities to commit fraud in processing cash purchases…

A: “Since you have asked multiple questions, we will solve the first three sub-parts question for you.…

Q: Which of the following substantive procedures would most likely help an auditor determine whether…

A: Substantive procedures are performed to detect the material misstatement or fraud at the assertion…

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: 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: amount of cash is accurately recorded on the financial statements. All of the following are…

A: an audit, independent examination of the financial statement of an entity. there are mainly three…

Q: The following are examples of circumstances that may indicate the possibility that the financial…

A: Audit is the process of checking and verifying financial statements of the business so that it can…

Q: The expense cycle offers employees many opportunities to commit fraud in processing cash purchases…

A: SOLUTION- THE REVIEW OF ACCOUNTING DOCUMENTS NORMALLY FINANCIAL  ACCOUNTS BY A THIRD PARTY CPA OR…

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

A: a.

Q: In testing controls over cash disbursements, an auditor most likely would determine that the person…

A: The question is related to Auditingbof Cash disbursement.

Q: If the auditor concludes that there is a high likelihood of material misstatement in accounts…

A: Auditing means the independent checking of company operation by outsider.

Q: Which of the following procedures is least likely to be performed before the balance-sheet date?a.…

A: Balance-sheet represents the financial position of the organization related to a specific period in…

Q: Which of the following is/are the least persuasive type of audit evidences? 1. Photocopies of sales…

A: The answer for the multiple choice question and relevant explanation are presented hereunder : Audit…

Q: What are your takeaways from the audit of receivables?

A: Answer: Receivables are assets of financials that are to be received from debtors. Takeaways from…

Q: Which type of evidence is considered more reliable a accounts receivable confirmation O minutes from…

A: Auditors are to verify the accounts of the company and validity of all financial statements.