During the confirmation of accounts receivable, an auditor receives a confirmation via the client’s fax machine. Which of the following actions should the auditor take?a. Not accept the confirmation and select another customer’s balance to confirm.b. Not accept the confirmation and treat it as an exception.c. Accept the confirmation and file it in the working papers.d. Accept the confirmation but verify the source and content through a telephone call to the respondent.

Q: Which of the following is NOT an issue with the Bradmark internal controls as it pertains to the…

A:

Q: When auditing the revenue and collection cycle, auditors normally select balances to confirm from…

A: Revenue and collection cycle: The revenue cycle records all the transactions that originate from…

Q: As the audit associate, you were asked by the senior associate to check the completeness of…

A: SOLUTION A voucher is a document recording a liability or allowing for a payment of a debt or debt…

Q: To which customer is the auditor least likely to send a receivables confirn O customer whose account…

A: A confirmation is sent by auditor to verify whether actual balances match with the books or not.

Q: Which of the following communications is most likely to be written before the balance-sheetdate?a. A…

A: D.Correct.- An engagement letter would be written before accepting an engagement and therefore…

Q: Based on an assessment of audit risk, the auditors are concerned with the following two risks:…

A: Introduction: Audit risk is the possibility that an auditor would overlook faults or commit fraud…

Q: Explain why an auditor compares the “date of deposit accordingto the books” to the “date of…

A: Typically, the phrase audit applies to an audit of the financial statement. A financial audit…

Q: b. A reply from a receivable confirmation letter received from the customer through the client is…

A: Confirmation letters are part of audit procedure and are sent to outside parties to confirm certain…

Q: When the client’s internal control are good, internal documents are more reliable than external True…

A: The question is related to true or false on Auditing.

Q: Which of the following procedures would an auditor most likely perform in searching for unrecorded…

A: Account payable  means the amount owed by business to outsider for the goods received and services…

Q: What is the process of confirming accounts receivable balances. Why is it important for auditors to…

A: The main objective of the auditor is to provide an opinion on the financial statement audited. The…

Q: Which of the following statements is invalid relating to confirmation of accounts receivable?  a. A…

A: Solution: Positive confirmation means inquiry that requires response from customer confirming the…

Q: Responsibilities to Clients’ Cases. Read the following cases. For each case, state whether the…

A: “Since you have posted a question with multiple sub parts, we will be answering the first 3 sub…

Q: Confirmation of Trade Accounts Receivable. L. King, CPA, is auditing the financial statements of…

A:

Q: Evidence comes in various types and has different degrees of reliability. Below are some pairs of…

A: The auditors are professional who possesses accounting, auditing, and taxation expertise. The…

Q: When an audit team does not receive a response on a positive accounts receivable confirmation,…

A: Audit: Audit is the process of verification of the compliance of the financial statements. It…

Q: To test whether debits to accounts receivable represent valid transactions, the auditor should trace…

A: Account receivable  are shown in BALANCE sheet and it is important for business to know the the…

Q: Responsibilities to Clients’ Cases. Read the following cases. For each case, state whetherthe action…

A: a.

Q: The following are examples of documentation typically obtained by auditors: Duplicate sales…

A: Auditing: It is systematic process of examining books of accounts and relevant financial information…

Q: Auditors ordinarily ascertain whether payroll checks are properly endorsed during the auditofa.…

A: Payroll: Payroll refers to the list of employees in a company and the amount paid to them in the…

Q: The following are deficiencies in internal controls over cash. For each deficiency indicate what…

A: “Since you have posted a question with multiple sub parts, we will solve first 3 sub parts for you.…

Q: Which of the following statements is invalid relating to confirmation of accounts receivable?  a. A…

A: Auditing means the independent checking of company operation by outsider. Auditor is  qualified and…

Q: • Confirmation of accounts receivable that have been categorized initially by an auditor as…

A: Accounts receivable is the amount which is due from the customers for the goods sold on credit…

Q: Which of the following statements is associated with analytical procedure test? a. It helps to…

A: Analytical procedures involve comparisons of recorded amounts, or ratios developed from recorded…

Q: Sending accounts receivable confirmation letters to the client's customers is consistent with the…

A: Accounts Receivable are those accounts of customers to whom business has made credit sales on…

Q: To gather audit evidence related to accounts receivable, the client should mail the confirmation…

A: Auditor: An auditor is a person or a group of people who is responsible for conducting an audit of…

Q: Explain why it is common for auditors to send confirmationrequests to vendors with “zero balances”…

A:

Q: Choose the one correct answer. Sending accounts receivable confirmation letters to the client's…

A: Audit is the detailed process of examining and verifying books of accounts and financial information…

Q: The following statements relate to nature of positive and negative confirmation requests. Which…

A: Concept Positive confirmation request               External confirmation request where the debtor…

Q: The following audit procedures are included in the auditprogram because of heightened risks of…

A: a.

Q: The following are typical questions that might appear on an internal control questionnaire for…

A: Internal controls: Designing and implementing internal controls is the responsibility of the…

Q: The following are useful source of evidence with regard the reasonableness of the client’s…

A: Collectbiliy of account receivables: Non-collectible or uncollected account receivables are called…

Q: The typical procedures performed to verify that the client has not omitted any amounts from the…

A: The answer is option (d.) [subsequent payments testing]

Q: Which of the following tests of details most likely would help an auditor determine whether accounts…

A:

Q: As the audit associate, you were asked by the senior associate to check the completeness of…

A: As an auditor we have found that one of the supplier has not yet given their confirmation and since…

Q: Which one of the following would the auditor consider to be an incompatible operation if the cashier…

A: Incompatible Operation in Cash Receipts: The mailroom is using for receiving the checks and after…

Q: Provide an appropriate response based on the following scenarios. Assume that the accounting…

A:

Q: Audit evidence can come in different forms with different degrees of persuasiveness.Which of the…

A:

Q: Items 1 through 6 are questions typically found in a standardinternal control questionnaire used by…

A: a.

Q: All allowances to customers for returned or defective merchandise should be supported by serially…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: The auditor must mail cash confirmations, but the client may mail long-term debt confirmations. True…

A: Confirmation Letter: It is a letter sent by an external  auditor to the suppliers/financial…

Q: When accounts receivable are confirmed at an interim date, auditors need not be concerned witha.…

A: Step 1 Accounts receivable is frequently a vital asset so auditors required an extensive and…

Q: What are your takeaways from the audit of receivables?

A: Answer: Receivables are assets of financials that are to be received from debtors. Takeaways from…

Q: Which of these arrangements of duties could most likely lead to an embezzlement or theft?a. The…

A:

Q: Which of the following tasks should the cash disbursement clerk NOT perform?a. review the supporting…

A: Cash disbursement: It can be defined as an outflow of cash that is made in exchange for the goods…