EBK AUDITING+ASSURANCE SERVICES
17th Edition
ISBN: 9780135171219
Author: ARENS
Publisher: PEARSON CO
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Question
Chapter 19, Problem 21DQP
a.
To determine
Identify the type of evidence being used.
b.
To determine
Identify substantive analytical procedure, a test of control, a substantive test of transactions, or a test of details of balances.
c.
To determine
To identify the transaction related audit objective
d.
To determine
To identify the balance-related audit objective
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Students have asked these similar questions
Auditors gather several different types of evidence during the audit including physical evidence; third party representation; documentary evidence; computations; and client representation. Listed below are FIVE (5) audit procedures that are typically performed in an audit:
i. Observe the client's inventory taking procedures.
ii. Computer printout from client's accounts receivable subsidiary ledger.
iii. Obtain a report on the valuation of inventory by a specialist.
iv. Examine an invoice in suppport of a sales transaction.
v. Inspect the client's bank statements.
Required:
a) Verify whether each of the above (i) to (v) documentary evidence is used is received directly by auditors, created externally, and held by client, or created internally by client.
b) Exhibit the difference between relative reliability of the above THREE (3) forms of documentary evidence.
The auditors have determined that each of the following objectives will be a part of the audit of SSC Corporation. While several procedures will ordinarily address an audit objective, select the procedure most directly related to the audit objective. Each procedure may be used once, more than once, or not at all.
1.
All receivables that should be recorded are recorded as of year-end.
2.
Recorded receivables are at appropriate net realizable values.
3.
Recorded receivables exist.
4.
The client has rights to recorded year-end receivables.
5.
The presentation and disclosure of receivables are adequate.
Trace a sample of sales invoiced from late in December to the sales journal and to postings in accounts receivable and sales amounts.
Review the aged trial balance for significant past due accounts.
Review board of director minutes and underlying contracts and sales terms with customers.
Vouch year-end accounts…
The following internal controls for the acquisition and payment cycle were selected from a standard internal control questionnaire.
1. Approved purchase orders are required for all acquisitions of goods.
2. Prenumbered receiving reports are prepared as support for acquisitions and numeri-
cally accounted for.
3. Dates on receiving reports are compared with vendors’ invoices before entry into the
acquisitions journal.
4. Account classifications are reviewed by someone other than the preparer.
5. All supporting documents are cancelled after checks are signed or electronic funds
transfers are approved.
6. The authorized signer compares data on supporting documents with checks and elec-
tronic funds transfer authorizations.
7. Vendors’ invoices are recalculated before payment.
8. All checks are signed by the owner or manager.
9. Checks are mailed by the owner or manager or a person under her supervision after
signing.
.10. The accounts payable master file is updated, balanced, and…
Chapter 19 Solutions
EBK AUDITING+ASSURANCE SERVICES
Ch. 19 - Identify three asset accounts, three expense...Ch. 19 - Explain the relationship between substantive tests...Ch. 19 - Prob. 3RQCh. 19 - Prob. 4RQCh. 19 - Prob. 5RQCh. 19 - Prob. 6RQCh. 19 - Prob. 7RQCh. 19 - Prob. 8RQCh. 19 - Prob. 9RQCh. 19 - Prob. 10RQ
Ch. 19 - Which documents will be used to verify accrued...Ch. 19 - Prob. 12RQCh. 19 - Prob. 13RQCh. 19 - Prob. 14RQCh. 19 - Prob. 15.1MCQCh. 19 - Prob. 15.2MCQCh. 19 - Prob. 15.3MCQCh. 19 - Prob. 16.1MCQCh. 19 - Prob. 16.2MCQCh. 19 - Prob. 16.3MCQCh. 19 - Prob. 17.1MCQCh. 19 - Prob. 17.2MCQCh. 19 - Prob. 17.3MCQCh. 19 - Prob. 18.1MCQCh. 19 - Prob. 18.2MCQCh. 19 - Prob. 18.3MCQCh. 19 - Prob. 19DQPCh. 19 - Prob. 20DQPCh. 19 - Prob. 21DQPCh. 19 - Prob. 22DQPCh. 19 - Prob. 24DQPCh. 19 - Prob. 25DQPCh. 19 - You are auditing the financial statements of...Ch. 19 - Prob. 27DQPCh. 19 - Prob. 28DQPCh. 19 - Prob. 29DQP
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