Identify the option that an auditor would select a sample for internal controls are operated effectively to minimize instances of failures to invoice a shipment

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Answer 1

Question

Chapter 14, Problem 28DQP

a.

To determine

Identify the option that an auditor would select a sample for internal controls are operated effectively to minimize instances of failures to invoice a shipment

b.

To determine

Identify an option that auditor would select a sample of items to obtain audit evidence about the uncollected items in customers’ accounts shown by trade receivables.

c.

To determine

Identify an option that an auditor would select to assess that the internal controls are effectively operated to minimize the chances of failure of posting invoices to customers’ accounts receivables master file.

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The following sales procedures were encountered duringthe annual audit of Marvel Wholesale Distributing Company:Customer orders are received by the sales order department. A clerk computes theapproximate dollar amount of the order and sends it to the credit department for approval.Credit approval is stamped on the order and sent to the accounting department. A computer isthen used to generate two copies of a sales invoice. The order is filed in the customer order file.The customer copy of the sales invoice is held in a pending file awaiting notification thatthe order was shipped. The shipping copy of the sales invoice is routed through the warehouse, and the shipping department has authority for the respective departments to releaseand ship the merchandise. Shipping department personnel pack the order and manuallyprepare a three-copy bill of lading: The original copy is mailed to the customer, the secondcopy is sent with the shipment, and the other is filed in sequence in the bill of…

As you are planning the annual audit of Norton Corporation, you note that the company has a number of user operated computers in use in various locations. One of the machines has been installed in the stores department, which has the responsibility for disbursing stock items and for maintaining stores records. In your audit, you find that one employee receives the requisitions for stores, disburses the stock, maintains the records, operates the computer, and authorizes adjustments to the total amounts of stock recorded by the computer. When you discuss the applicable controls with the department manager, you are told that the user operated computer is assigned exclusively to that department. Therefore, the manager contends that it does not require the same types of controls applicable to large IT systems. a. Comment on the manager’s contention.

As you are planning the annual audit of Norton Corporation, you note at the company has a number of user operated computers in use in various locations. One of the machines has been installed in the stores department, which has the responsibility for disbursing stock items and for maintaining stores records. In your audit, you find that one employee receives the requisitions for stores, disburses the stock, maintains the records, operates the computer, and authorizes adjustments to the total amounts of stock recorded by the computer. When you discuss the applicable controls with the department manager, you are told that the user operated computer is assigned exclusively to that department. Therefore, the manager contends that it does not require the same types of controls applicable to large IT systems. b. Discuss five types of control that would apply to this microcomputer application.

Answer 2

Question

Chapter 14, Problem 28DQP

a.

To determine

Identify the option that an auditor would select a sample for internal controls are operated effectively to minimize instances of failures to invoice a shipment

b.

To determine

Identify an option that auditor would select a sample of items to obtain audit evidence about the uncollected items in customers’ accounts shown by trade receivables.

c.

To determine

Identify an option that an auditor would select to assess that the internal controls are effectively operated to minimize the chances of failure of posting invoices to customers’ accounts receivables master file.

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Answer 3

Question

Chapter 14, Problem 28DQP

a.

To determine

Identify the option that an auditor would select a sample for internal controls are operated effectively to minimize instances of failures to invoice a shipment

b.

To determine

Identify an option that auditor would select a sample of items to obtain audit evidence about the uncollected items in customers’ accounts shown by trade receivables.

c.

To determine

Identify an option that an auditor would select to assess that the internal controls are effectively operated to minimize the chances of failure of posting invoices to customers’ accounts receivables master file.

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Answer 4

Question

Chapter 14, Problem 28DQP

a.

To determine

Identify the option that an auditor would select a sample for internal controls are operated effectively to minimize instances of failures to invoice a shipment

b.

To determine

Identify an option that auditor would select a sample of items to obtain audit evidence about the uncollected items in customers’ accounts shown by trade receivables.

c.

To determine

Identify an option that an auditor would select to assess that the internal controls are effectively operated to minimize the chances of failure of posting invoices to customers’ accounts receivables master file.

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Answer 5

Chapter 14, Problem 28DQP

a.

To determine

Identify the option that an auditor would select a sample for internal controls are operated effectively to minimize instances of failures to invoice a shipment

b.

To determine

Identify an option that auditor would select a sample of items to obtain audit evidence about the uncollected items in customers’ accounts shown by trade receivables.

c.

To determine

Identify an option that an auditor would select to assess that the internal controls are effectively operated to minimize the chances of failure of posting invoices to customers’ accounts receivables master file.

Answer 6

Chapter 14, Problem 28DQP

a.

To determine

Identify the option that an auditor would select a sample for internal controls are operated effectively to minimize instances of failures to invoice a shipment

Answer 7

Chapter 14, Problem 28DQP

a.

To determine

Identify the option that an auditor would select a sample for internal controls are operated effectively to minimize instances of failures to invoice a shipment

Answer 8

b.

To determine

Identify an option that auditor would select a sample of items to obtain audit evidence about the uncollected items in customers’ accounts shown by trade receivables.

Answer 9

b.

To determine

Identify an option that auditor would select a sample of items to obtain audit evidence about the uncollected items in customers’ accounts shown by trade receivables.

Answer 10

c.

To determine

Identify an option that an auditor would select to assess that the internal controls are effectively operated to minimize the chances of failure of posting invoices to customers’ accounts receivables master file.

Answer 11

c.

To determine

Identify an option that an auditor would select to assess that the internal controls are effectively operated to minimize the chances of failure of posting invoices to customers’ accounts receivables master file.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 14 - Describe the following documents and records and...Ch. 14 - Prob. 2RQ Ch. 14 - Prob. 3RQ Ch. 14 - Prob. 4RQ Ch. 14 - Prob. 5RQ Ch. 14 - Prob. 6RQ Ch. 14 - Prob. 7RQ Ch. 14 - Prob. 8RQ Ch. 14 - Prob. 9RQ Ch. 14 - Prob. 10RQ

Identify the option that an auditor would select a sample for internal controls are operated effectively to minimize instances of failures to invoice a shipment

Solution Summary: The author explains how an auditor would select a sample of transactions from the sales invoice file to verify that internal controls are operated effectively to minimize instances of failures.

Identify the option that an auditor would select a sample for internal controls are operated effectively to minimize instances of failures to invoice a shipment

Identify an option that auditor would select a sample of items to obtain audit evidence about the uncollected items in customers’ accounts shown by trade receivables.

Identify an option that an auditor would select to assess that the internal controls are effectively operated to minimize the chances of failure of posting invoices to customers’ accounts receivables master file.

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