Auditing and Assurance Services (16th Edition)
Auditing and Assurance Services (16th Edition)
16th Edition
ISBN: 9780134065823
Author: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan
Publisher: PEARSON
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Chapter 16, Problem 4RQ

Explain why you agree or disagree with the following statement: “In most audits, it is more important to test carefully the cutoff for sales than for cash receipts.” Describe how you perform each type of test, assuming documents are prenumbered.

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Describe the steps that auditors use to test controls over sales and collections. Please provide references if any.
Explain why you agree or disagree with the following statement:“In most audits, it is more important to test carefully the cutoff for sales than forcash receipts.” Describe how you perform each type of test, assuming documents areprenumbered.
The following questions concern types of audit tests.Choose the best response.a. The auditor looks for an indication on duplicate sales invoices to see whether theaccuracy of invoices has been verified. This is an example of(1) a test of details of balances. (3) a substantive test of transactions.(2) a test of control. (4) both a test of control and a substantivetest of transactions.
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