EBK AUDITING+ASSURANCE SERVICES
17th Edition
ISBN: 9780135171219
Author: ARENS
Publisher: PEARSON CO
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Question
Chapter 16, Problem 39ICA
a.
To determine
List the relationship, ratio, and trend for reasonableness of accounts payable.
b.
To determine
Explain the test of details of balances audit program for accounts payable.
c.
To determine
Explain the effects of test of details of balances in
d.
To determine
Develop the audit schedule to determine the misstatements for each difference.
e.
To determine
Calculate the estimated misstatement in income statement.
f.
To determine
Estimate the total misstatements in accounts payable.
g.
To determine
Provide conclusion about the fairness of the recorded balance in accounts payable, and its effect.
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You are part of the audit team that is auditing Hillsburg Hardware Co. and you have been assigned to the
sales and collection business process. You are testing whether the cash received has been recorded in the
cash receipts journal. (completeness objective/assertion). List two tests of controls and at least one test
of transactions that you would do to satisfy yourself regarding the completeness assertion.
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1. Which of the following is an example of an input control in the expenditure cycle?
a. Physical controls over inventory
b. Reconciling the bank statement
c. Document sequencing
d. Access controls over the purchasing system
2. A control procedure that helps prevent duplicate payments is:
a. Performing physical inventory counts
b. Matching purchase orders, receiving reports, and vendor invoices
c. Reconciling bank statements
d. Conducting vendor audits
3.Which of the following is an example of an independent verification control in the expenditure cycle?
a. Document sequencing
b. Reconciling the bank statement
c. Segregation of duties
d. Physical controls over inventory
Cite one one transaction-related audit objective for each of the following transactions:
1. acquisitions
2. cash disbursements
For each objective, identify
a. one key internal control activity, and
b. one audit procedure to test the control
Chapter 16 Solutions
EBK AUDITING+ASSURANCE SERVICES
Ch. 16 - Prob. 1RQCh. 16 - Prob. 2RQCh. 16 - Prob. 3RQCh. 16 - Prob. 4RQCh. 16 - Explain why you agree or disagree with the...Ch. 16 - Prob. 6RQCh. 16 - Prob. 7RQCh. 16 - Prob. 8RQCh. 16 - Prob. 9RQCh. 16 - Prob. 10RQ
Ch. 16 - Prob. 11RQCh. 16 - Under what circumstances is it acceptable to...Ch. 16 - Prob. 13RQCh. 16 - Prob. 14RQCh. 16 - Prob. 15RQCh. 16 - Prob. 16RQCh. 16 - Prob. 17RQCh. 16 - Prob. 18RQCh. 16 - Prob. 19RQCh. 16 - Prob. 20.1MCQCh. 16 - Prob. 20.2MCQCh. 16 - Prob. 20.3MCQCh. 16 - The following questions deal with confirmation of...Ch. 16 - Prob. 21.2MCQCh. 16 - Prob. 21.3MCQCh. 16 - Prob. 22.1MCQCh. 16 - Prob. 22.2MCQCh. 16 - Prob. 22.3MCQCh. 16 - Prob. 23.1MCQCh. 16 - Which of the following is least likely to be a...Ch. 16 - The following questions concern auditor...Ch. 16 - Prob. 24DQPCh. 16 - Prob. 25DQPCh. 16 - Prob. 26DQPCh. 16 - The following misstatements are sometimes found in...Ch. 16 - Prob. 28DQPCh. 16 - Prob. 29DQPCh. 16 - Prob. 30DQPCh. 16 - Prob. 31DQPCh. 16 - Prob. 32DQPCh. 16 - Prob. 33DQPCh. 16 - Prob. 34DQPCh. 16 - Prob. 35DQPCh. 16 - Prob. 36DQPCh. 16 - Prob. 38DQPCh. 16 - Prob. 39ICA
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Similar questions
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