Exam 11: Revenues, Receivables, and Receipts Process

An auditor confirms a representative number of open accounts receivable as of December 31 and investigates exceptions and comments noted by respondents.By this procedure, the auditor is most likely to learn of which of the following?

(Multiple Choice)

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Question 21

Auditors ordinarily send a standard bank confirmation to all banks with which the client has done business during the year under audit, regardless of whether the client has closed its account.One reason for doing so is to

(Multiple Choice)

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Question 22

Infotech is a small software company with few billings.It sends out invoices to clients using the preparation date as the invoice number.As a result, which of the following assertions about billings cannot be tested?

(Multiple Choice)

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Question 23

Which of the following is most likely to be detected by an auditor's review of a client's sales cut off?

(Multiple Choice)

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Question 24

Money laundering refers to the proper processing of cash receipts.

(True/False)

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Question 25

Which of the following internal control procedures is most likely to ensure that all billed sales are correctly posted to the accounts receivable subsidiary ledger?

(Multiple Choice)

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Question 26

In which of the following circumstances is the use of the negative form of accounts receivable confirmation most likely to be justified?

(Multiple Choice)

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Question 27

Substantive procedures for the audit of cash would include which of the following?

(Multiple Choice)

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Question 28

Selecting a sample of recorded sales invoices from the sales journal and comparing the quantity billed to the quantity shipped is an example of a test to satisfy the control objective of accuracy.

(True/False)

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Question 29

In the audit of accounts receivable, negative confirmation are not normally used if:

(Multiple Choice)

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Question 30

To determine whether sales transactions have been recorded in the proper accounting period the auditor performs cut off tests.Which of the following best describes the overall approach used when performing cut off tests?

(Multiple Choice)

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Question 31

Which of the following controls is most likely to help ensure that all credit sales transactions are recorded?

(Multiple Choice)

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Question 32

What is dual-direction testing?

(Essay)

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Question 33

Tracing a sample of recorded cash receipts to the customers' accounts in the accounts receivable subsidiary ledger is an audit procedure designed to satisfy the control objective of

(Multiple Choice)

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Question 34

In delivering confirmations to intended recipients, it is acceptable for the auditor to allow the client to control the mailing.

(True/False)

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Question 35

In a manual system for the recording of cash receipts, the same person should make the journal entries to the control account and the subsidiary records.

(True/False)

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Question 36

Which of the following procedures is an auditor most likely to perform for year-end accounts receivable confirmations when the auditor did not receive replies to second requests?

(Multiple Choice)

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(74)

Question 37

The audit team should immediately perform document vouching procedures to audit the account if a response is not received to the first confirmation request.

(True/False)

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Question 38

Fidelity bonds can help prevent and detect embezzlement.

(True/False)

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Question 39

The bank confirmation provides the most evidence for which of the following assertions about cash?

(Multiple Choice)

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Question 40

Showing 21 - 40 of 68

An auditor confirms a representative number of open accounts receivable as of December 31 and investigates exceptions and comments noted by respondents.By this procedure, the auditor is most likely to learn of which of the following?

Auditors ordinarily send a standard bank confirmation to all banks with which the client has done business during the year under audit, regardless of whether the client has closed its account.One reason for doing so is to

Infotech is a small software company with few billings.It sends out invoices to clients using the preparation date as the invoice number.As a result, which of the following assertions about billings cannot be tested?

Which of the following is most likely to be detected by an auditor's review of a client's sales cut off?

Money laundering refers to the proper processing of cash receipts.

Which of the following internal control procedures is most likely to ensure that all billed sales are correctly posted to the accounts receivable subsidiary ledger?

In which of the following circumstances is the use of the negative form of accounts receivable confirmation most likely to be justified?

Substantive procedures for the audit of cash would include which of the following?

Selecting a sample of recorded sales invoices from the sales journal and comparing the quantity billed to the quantity shipped is an example of a test to satisfy the control objective of accuracy.

In the audit of accounts receivable, negative confirmation are not normally used if:

To determine whether sales transactions have been recorded in the proper accounting period the auditor performs cut off tests.Which of the following best describes the overall approach used when performing cut off tests?

Which of the following controls is most likely to help ensure that all credit sales transactions are recorded?

What is dual-direction testing?

Tracing a sample of recorded cash receipts to the customers' accounts in the accounts receivable subsidiary ledger is an audit procedure designed to satisfy the control objective of

In delivering confirmations to intended recipients, it is acceptable for the auditor to allow the client to control the mailing.

In a manual system for the recording of cash receipts, the same person should make the journal entries to the control account and the subsidiary records.

Which of the following procedures is an auditor most likely to perform for year-end accounts receivable confirmations when the auditor did not receive replies to second requests?

The audit team should immediately perform document vouching procedures to audit the account if a response is not received to the first confirmation request.

Fidelity bonds can help prevent and detect embezzlement.

The bank confirmation provides the most evidence for which of the following assertions about cash?

Introduction to Auditing

Audit, Assurance, and Quality Control Standards

Reports on Audited Financial Statements and Audited Internal Controlt

Professional Ethics and Auditor Responsibilities

Legal Liability

Preliminary Audit Planning: Understanding the Auditee

Assessing Risks and Internal Control

Audit Evidence and Assurance

Control Assessment and Testing

Audit Sampling

Purchases, Payables, and Payments Processtrue

Production and Payroll Process

Finance and Investment Process

Completing the Audit

Other Public Accounting Services and Reports

Fraud Awareness Auditing

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