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List and discuss the three factors mentioned in the chapter that may affect the reliability of confirmations of accounts receivable.
Distinguish between positive and negative confirmations. Under what circumstances would positive confirmations be more appropriate than negative confirmations?
List alternative procedures that Signoff-On might use to ensure the validity of these accounts.
Identify the procedures Stanley should perform to determine whether lapping exists.
Identify and discuss the reliability of the types of evidence an auditor would need to determine whether each condition cited above was met for a bill.
What major types of transactions occur in the purchasing process? What financial statement accounts are affected by each type of transaction?
List the key segregation of duties in the purchasing process. What errors or fraud can occur if such duties are not segregated?
Identify two tests of controls that could be performed using computer-assisted audit techniques (CAATs) for purchase transactions.
Identify four possible disclosure issues related to the purchasing process and related accounts.
What are some of the typical procedures that might be applied to the audit of the tax provision by an auditor and/or tax specialist?
Several instances of transactions that were not properly recorded in subsidiary ledgers.
Management identified a material weakness in First Bank Company's system of internal control over financial reporting with respect to ensuring.
You determine that there is a reasonable possibility that any one of them could result in a misstatement that is significant.
Meryll Company's management identified a material weakness prior to the "as of" date and implemented controls to correct it.
Inadequate segregation of duties over certain information system access controls.
Assume that First Coast's auditor is issuing a combined report for the financial statement audit and audit of internal control.
Identify the errors and omissions contained in the auditor's report as drafted by the staff accountant.
Brown, CPA, is auditing the financial statements of Big Z Wholesaling, Inc., a continuing audit client, for the year ended January 31, 2015.
Specify whether the report identifies any material weaknesses, and if so briefly describe the nature of the issue.
Distinguish between nonstatistical and statistical sampling. What are the advantages and disadvantages of using statistical sampling?
Define attribute sampling. Why is this sampling technique appropriate for tests of controls?
In performing certain audit procedures, the auditor may encounter voided documents, inapplicable documents, or missing documents, or the auditor .
How should the results of a nonstatistical test of controls sample be evaluated in terms of considering sampling risk?
What conclusion should Austen reach about each control procedure? Justify your answer.
An auditor has haphazardly selected 30 sales invoices to be examined for proper pricing of the goods purchased by the customer.