Exam 16: Completing the Tests in the Sales and Collection Cycle: Accounts Receivable

Explore all topics

An auditor is comparing the write-off of uncollectible accounts as a percentage of total accounts receivable with previous years.A possible misstatement this procedure could uncover is:

(Multiple Choice)

4.9/5

(78)

Question 41

Most tests of accounts receivable are based on what schedule, file, or listing?

(Multiple Choice)

4.9/5

(62)

Question 42

Discuss the alternative procedures an auditor can perform to test the existence objective for accounts receivable when customers do not respond to confirmation requests.

(Essay)

4.9/5

(94)

Question 43

The most important aspect of evaluating the client's method of obtaining a reliable cutoff is to:

(Multiple Choice)

4.7/5

(69)

Question 44

Briefly describe the circumstances in which it is acceptable to use negative confirmation requests.

(Essay)

4.8/5

(70)

Question 45

Auditing standards require the confirmation of accounts receivable in normal circumstances.What are the two exceptions to this requirement?

(Essay)

4.9/5

(81)

Question 46

If material, all of the following are required to be separately disclosed in the financial statements except for:

(Multiple Choice)

4.9/5

(78)

Question 47

When do most companies record sales returns and allowances?

(Multiple Choice)

4.9/5

(89)

Question 48

Analytical procedures are substantive tests and, if the results of the analytical procedures are favorable, the auditor would normally:

(Multiple Choice)

4.7/5

(71)

Question 49

Auditors must maintain control of confirmations until they are returned from the customer.

(True/False)

4.7/5

(77)

Question 50

Which of the following types of receivables would not deserve the special attention of the auditor?

(Multiple Choice)

4.8/5

(89)

Question 51

Negative confirmations are less expensive, and less reliable, than positive confirmations.

(True/False)

4.8/5

(81)

Question 52

An auditor should perform alternative procedures to substantiate the existence of accounts receivable when:

(Multiple Choice)

4.9/5

(70)

Question 53

Tests of which balance-related audit objective are normally performed first in an audit of the sales and collection?

(Multiple Choice)

5.0/5

(83)

Question 54

Tests of the presentation and disclosure-related objectives are generally done as part of the completion phase of the audit.

(True/False)

4.9/5

(81)

Question 55

When a customer does not return an accounts receivable confirmation, it is acceptable, without performing alternative procedures, to assume the amount is 100% overstated when generalizing from the sample to the population.

(True/False)

4.9/5

(75)

Question 56

Which of the following is a correct statement regarding analytical procedures?

(Multiple Choice)

4.9/5

(83)

Question 57

When designing tests of details of balances, an important point to remember is:

(Multiple Choice)

4.7/5

(97)

Question 58

Stratification of accounts receivable is desirable when using confirmations.

(True/False)

4.8/5

(73)

Question 59

Confirmation of accounts receivable provide evidence related to the existence, accuracy and cutoff objectives.

(True/False)

4.8/5

(78)

Question 60

Showing 41 - 60 of 101

Exam 16: Completing the Tests in the Sales and Collection Cycle: Accounts Receivable

An auditor is comparing the write-off of uncollectible accounts as a percentage of total accounts receivable with previous years.A possible misstatement this procedure could uncover is:

Most tests of accounts receivable are based on what schedule, file, or listing?

Discuss the alternative procedures an auditor can perform to test the existence objective for accounts receivable when customers do not respond to confirmation requests.

The most important aspect of evaluating the client's method of obtaining a reliable cutoff is to:

Briefly describe the circumstances in which it is acceptable to use negative confirmation requests.

Auditing standards require the confirmation of accounts receivable in normal circumstances.What are the two exceptions to this requirement?

If material, all of the following are required to be separately disclosed in the financial statements except for:

When do most companies record sales returns and allowances?

Analytical procedures are substantive tests and, if the results of the analytical procedures are favorable, the auditor would normally:

Auditors must maintain control of confirmations until they are returned from the customer.

Which of the following types of receivables would not deserve the special attention of the auditor?

Negative confirmations are less expensive, and less reliable, than positive confirmations.

An auditor should perform alternative procedures to substantiate the existence of accounts receivable when:

Tests of which balance-related audit objective are normally performed first in an audit of the sales and collection?

Tests of the presentation and disclosure-related objectives are generally done as part of the completion phase of the audit.

When a customer does not return an accounts receivable confirmation, it is acceptable, without performing alternative procedures, to assume the amount is 100% overstated when generalizing from the sample to the population.

Which of the following is a correct statement regarding analytical procedures?

When designing tests of details of balances, an important point to remember is:

Stratification of accounts receivable is desirable when using confirmations.

Confirmation of accounts receivable provide evidence related to the existence, accuracy and cutoff objectives.

The Demand for Audit and Other Assurance Services

The Cpa Profession

Audit Reports

Professional Ethics

Legal Liability

Audit Responsibilities and Objectives

Audit Evidence

Audit Planning and Analytical Procedures

Materiality and Risk

Internal Control, Control Risk, and Section 404 Audits

Fraud Auditing

The Impact of Information Technology on the Audit Process

Overall Audit Strategy and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests of Transactions

Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Audit Sampling for Tests of Details of Balances

Audit of the Acquisition and Payment Cycle: Tests of Controls, Substantive Tests of Transactions, and Accounts Payable

Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts

Audit of the Payroll and Personnel Cycle

Audit of the Inventory and Warehousing Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash and Financial Instruments

Completing the Audit

Other Assurance Services

Internal and Governmental Financial Auditing and Operational Auditing

Filters