Auditing And Assurance Services
17th Edition
ISBN: 9780134897431
Author: ARENS, Alvin A.
Publisher: PEARSON
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Question
Chapter 14, Problem 10RQ
To determine
Give the differences between the auditor’s approach in verifying sales return and allowances and that for sales.
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Check out a sample textbook solutionStudents have asked these similar questions
What type of substantive testing (not test of controls) should be used for each of the following accounts?
1. Inventory
2. Accounts Payable
3. Sales Revenue
Which assertion is most likely being tested when an auditor vouches transactions from the sales Journal to the sales orders?
a. cutoff
b. rights
c. completeness
d. accuracy
What is the difference between the auditor’s approach in verifyingsales returns and allowances and that for sales? Explain the reasons for the difference
Chapter 14 Solutions
Auditing And Assurance Services
Ch. 14 - Describe the following documents and records and...Ch. 14 - Prob. 2RQCh. 14 - Prob. 3RQCh. 14 - Prob. 4RQCh. 14 - Prob. 5RQCh. 14 - Prob. 6RQCh. 14 - Prob. 7RQCh. 14 - Prob. 8RQCh. 14 - Prob. 9RQCh. 14 - Prob. 10RQ
Ch. 14 - Prob. 11RQCh. 14 - Prob. 12RQCh. 14 - Prob. 13RQCh. 14 - Prob. 14RQCh. 14 - Prob. 15RQCh. 14 - Prob. 16RQCh. 14 - Prob. 17RQCh. 14 - Prob. 18RQCh. 14 - Prob. 19RQCh. 14 - Prob. 20.1MCQCh. 14 - Prob. 20.2MCQCh. 14 - Prob. 20.3MCQCh. 14 - Prob. 21.1MCQCh. 14 - An auditor is performing substantive tests of...Ch. 14 - Prob. 22.3MCQCh. 14 - Prob. 23.1MCQCh. 14 - Prob. 23.2MCQCh. 14 - Prob. 23.3MCQCh. 14 - Prob. 24DQPCh. 14 - Prob. 25DQPCh. 14 - Prob. 26DQPCh. 14 - Prob. 27DQPCh. 14 - Prob. 28DQPCh. 14 - Prob. 29DQPCh. 14 - Prob. 30DQPCh. 14 - Prob. 31DQPCh. 14 - Prob. 32DQPCh. 14 - Prob. 33DQPCh. 14 - Prob. 34DQPCh. 14 - Prob. 37ICA
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Similar questions
- What is the audited net sales balance?arrow_forwardUnder what circumstances would an auditor choose to confirminformation such as the right of return or special sales terms in addition to the customerbalance?arrow_forwardDescribe the FASB's rules or standard on revenue recognition. Where do we find the FASB's revenue recognition standard? Why is it important for an auditor that will audit sales to understand the revenue recognition standard?arrow_forward
- 1. Explain the basic processes involved in documenting revenue transactions as a part of the audit on sales. 2.arrow_forwardExplain the importance of proper credit approval for sales. Whateffect do adequate controls in the credit function have on the auditor’s evidence accumulation?arrow_forwardExplain the role of sales volume, cost, and profitability in an audit? How do sales volume, cost, and profitability evaluate the effectiveness of the sales organization?arrow_forward
- discuss the process of auditing the following:• Revenue• Receivables• Expected Credit Loss (ECL)arrow_forward11) To obtain evidence on the completeness assertion for revenue, the auditor would select a sample of shipping documents and trace them to the sales journal True Falsearrow_forwardAn audit team would most likely examine the detail support for charges to which of the following accounts?a. Payroll expense.b. Cost of goods sold.c. Supplies expense.d. Legal expense.arrow_forward
- What is the purpose of analytical reviews in the audit of revenue cycle accounts? Please give an example.arrow_forwardWhen does sales revenue is recognized? When does sales revenue is recorded? Does recognize and record have differences?arrow_forwardImagine that you were auditing accounts receivable balances to confirm sales and found significant discrepancies between the recorded account balances and returned confirmations from customers. Recommend an alternative approach to confirming sales revenue. Provide a rationale for your recommendation.arrow_forward
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