Question 1

Auditors should consider the possibility of kiting if there are frequent deposits of round amounts.

Accepted Answer

A) True 
 B)False

Question 2

Will the confirmation of accounts, loans and notes receivable always provide sufficient appropriate audit evidence to cover the ownership assertion made by the client?

Accepted Answer

No.The respondents to the confirmations

Question 3

Substantive procedures are designed to obtain direct evidence about the dollar amounts in account balances.

Accepted Answer

A) True 
 B)False

Question 4

The accountant who records cash receipts and credits to customer accounts should also handle the cash received and the bank deposits.

Accepted Answer

A) True 
 B)False

Question 5

To gather evidence about transactions with related parties an auditor would most likely:

Accepted Answer

A) Send account confirmations. 
B) Perform analysis of receivables turnover. 
C) Scan the receivables sub ledger for credit balances. 
D) Scan the aged trial balance for names of officers and directors. 
A) Send account confirmations. 
B) Perform analysis of receivables turnover. 
C) Scan the receivables sub ledger for credit balances. 
D) Scan the aged trial balance for names of officers and directors.

Question 6

Scanning sales invoices to determine whether there are any numbers missing in the sequence is a control over which of the following objectives?

Accepted Answer

A) Completeness. 
B) Accuracy. 
C) Validity. 
D) Classification. 
A) Completeness. 
B) Accuracy. 
C) Validity. 
D) Classification.

Question 7

The use of positive confirmations provides better evidence than the use of negative confirmations.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following audit procedures is most likely to detect lapping by the accounts receivable clerk?

Accepted Answer

A) Use the cut off bank statement to trace all cheques dated before the balance sheet date to the outstanding cheque list on the bank reconciliation. 
B) Use the cut off bank statement to determine if the bank recorded all deposits in transit per the bank reconciliation on the first business day after the balance sheet date. 
C) Compare the detail of cheques listed on a sample of deposit slips to the detail of customer credits listed on the day's posting to the customer accounts in the subsidiary ledger. 
D) Prepare a schedule of inter-bank transfers for a few days before and after the balance sheet date. 
A) Use the cut off bank statement to trace all cheques dated before the balance sheet date to the outstanding cheque list on the bank reconciliation. 
B) Use the cut off bank statement to determine if the bank recorded all deposits in transit per the bank reconciliation on the first business day after the balance sheet date. 
C) Compare the detail of cheques listed on a sample of deposit slips to the detail of customer credits listed on the day's posting to the customer accounts in the subsidiary ledger. 
D) Prepare a schedule of inter-bank transfers for a few days before and after the balance sheet date.

Auditors should consider the possibility of kiting if there are frequent deposits of round amounts.

Will the confirmation of accounts, loans and notes receivable always provide sufficient appropriate audit evidence to cover the ownership assertion made by the client?

Substantive procedures are designed to obtain direct evidence about the dollar amounts in account balances.

The accountant who records cash receipts and credits to customer accounts should also handle the cash received and the bank deposits.

To gather evidence about transactions with related parties an auditor would most likely:

Scanning sales invoices to determine whether there are any numbers missing in the sequence is a control over which of the following objectives?

The use of positive confirmations provides better evidence than the use of negative confirmations.

Which of the following audit procedures is most likely to detect lapping by the accounts receivable clerk?

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

Filters

Exam 11: Revenues, Receivables, and Receipts Process

Auditors should consider the possibility of kiting if there are frequent deposits of round amounts.

Will the confirmation of accounts, loans and notes receivable always provide sufficient appropriate audit evidence to cover the ownership assertion made by the client?

Substantive procedures are designed to obtain direct evidence about the dollar amounts in account balances.

The accountant who records cash receipts and credits to customer accounts should also handle the cash received and the bank deposits.

To gather evidence about transactions with related parties an auditor would most likely:

Scanning sales invoices to determine whether there are any numbers missing in the sequence is a control over which of the following objectives?

The use of positive confirmations provides better evidence than the use of negative confirmations.

Which of the following audit procedures is most likely to detect lapping by the accounts receivable clerk?

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

Filters