EBK AUDITING AND ASSURANCE SERVICES
16th Edition
ISBN: 9780134067117
Author: Hogan
Publisher: VST
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Textbook Question
Chapter 7, Problem 31DQP
Following are 10
Audit Procedures
- 1. ______ the unit selling price times quantity on the duplicate sales invoice and compare the total to the amount on the duplicate sales invoice.
- 2. ______ whether the accounts receivable bookkeeper is prohibited from handling cash.
- 3. ______ the ratio of cost of goods sold to sales and compare the ratio to previous years.
- 4. ______ the sales journal and ______ the total to the general ledger.
- 5. ______ the sales journal, looking for large and unusual transactions requiring investigation.
- 6. ______ of management whether all accounting employees are required to take annual vacations.
- 7. ______ all marketable securities as of the balance sheet date to determine whether they equal the total on the client’s list.
- 8. ______ the balance in the bank account directly with the East State Bank.
- 9. ______ a sample of duplicate sales invoices to determine if the controller’s approval is included and ______ each duplicate sales invoice to the sales journal for agreement of name and amount.
- 10. ______ the agreement between Johnson Wholesale Company and the client to determine whether the shipment is a sale or a consignment.
Terms
- a. Examine
- b. Scan
- c. Read
- d. Compute
- e. Recompute
- f. Foot
- g. Trace
- h. Compare
- i. Count
- j. Observe
- k. Inquire
- l. Confirm
Required
- a. For each of the 12 blanks in procedures 1 through 10, identify the most appropriate term. No term can be used more than once.
- b. For each of the procedures 1 through 10, identify the type of evidence that is being used.
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Which of the following statements is correct?
Select one:
a. Account receivable turnover is equal to net credit sales divided by average net accounts receivable.
b. Buying aged receivables from businesses and then collects the payments directly from the customers is called Allowance for uncollectible accounts.
c. Auto generated document numbers is a fraud preventive method which is more efficient than physical controls.
d. If the same people are responsible for a series of related accounting activities is called Segregation of Duties.
Which of the following tests is directed towards the management assertion of completeness of sales?
Question 19 options:
1)
Checking mathematical accuracy of invoices.
2)
Vouching sales recorded to invoices held.
3)
Tracing delivery documents to invoices and sales recorded.
4)
Vouching invoices to delivery documents.
Next Page
Which audit procedure is most effective in testing credit sales for overstatement?(1) Trace a sample of postings from the sales journal to the sales account in thegeneral ledger.(2) Vouch a sample of recorded sales from the sales journal to shipping documents.(3) Prepare an aging of accounts receivable.(4) Trace a sample of initial sales orders to sales recorded in the sales journal.
Chapter 7 Solutions
EBK AUDITING AND ASSURANCE SERVICES
Ch. 7 - Prob. 1RQCh. 7 - Prob. 2RQCh. 7 - Prob. 3RQCh. 7 - Prob. 4RQCh. 7 - Prob. 5RQCh. 7 - Prob. 6RQCh. 7 - Prob. 7RQCh. 7 - Prob. 8RQCh. 7 - Prob. 9RQCh. 7 - Prob. 10RQ
Ch. 7 - Prob. 11RQCh. 7 - Prob. 12RQCh. 7 - Describe the liquidity activity ratios and explain...Ch. 7 - Prob. 14RQCh. 7 - Prob. 15RQCh. 7 - Prob. 16RQCh. 7 - Prob. 17RQCh. 7 - Prob. 18RQCh. 7 - Define what is meant by a tick mark. What is its...Ch. 7 - Prob. 20RQCh. 7 - Prob. 21.1MCQCh. 7 - Prob. 21.2MCQCh. 7 - Prob. 21.3MCQCh. 7 - Prob. 22.1MCQCh. 7 - Prob. 22.2MCQCh. 7 - Prob. 22.3MCQCh. 7 - Prob. 23.1MCQCh. 7 - Prob. 23.2MCQCh. 7 - Prob. 23.3MCQCh. 7 - Prob. 24.1MCQCh. 7 - Prob. 24.2MCQCh. 7 - Prob. 24.3MCQCh. 7 - Prob. 25DQPCh. 7 - Prob. 26DQPCh. 7 - Prob. 27DQPCh. 7 - Prob. 28DQPCh. 7 - Prob. 29DQPCh. 7 - Prob. 30DQPCh. 7 - Following are 10 audit procedures with words...Ch. 7 - Prob. 32DQPCh. 7 - Prob. 33DQPCh. 7 - Prob. 34DQPCh. 7 - You are auditing payroll for the Morehead...Ch. 7 - Prob. 36DQPCh. 7 - Prob. 38C
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