Which of the following procedures would an auditor most likely perform in searching for unrecorded liabilities? O Compare a sample of purchase orders issued just after year-end with the year-end accounts payable trial balance. Trace a sample of accounts payable entries recorded just before year-end to the unmatched receiving report file. O Scan the cash disbursements entries recorded just before year-end for indications of unusual transactions. O Vouch a sample of cash disbursements recorded just after year-end to receiving reports and vendor invoices.

Q: Send letters to a sample of accounts receivable customers to verify whether they have an outstanding…

A: Audit Objective: Existence and CompletenessSpecific Audit Objective: To verify the existence and…

Q: Comment on the extent to which results from a negative confirmation may be relied upon to verify the…

A: Ans. Positive confirmation is an auditing enquiry that requires the customer to confirm the accuracy…

Q: For each procedure, indicate the primary audit objective being satisfied: Trace entries from cash…

A: The primary objective of an audit is to check and confirm that all financial information is…

Q: An auditor simply compares a current year balance with the prior year balance in order to help…

A: To identify trends, analysing the data of just one year and compare it with current year will not be…

Q: We discussed the difference between a) tracing a sample of transactions from the source documents to…

A: Source documents refer to the original records or materials that provide evidence of a business…

Q: Attached is an audit working paper prepared by a new staff auditor based on his testing of a…

A: Auditor while performing his duties for conducting an audit prepares some documents, file work and…

Q: In order to determine whether accounts payable are understated, auditors wish to obtain a sample of…

A: The objective of the question is to identify the most appropriate sampling method for auditors to…

Q: Which among the following types of audit evidence can be considered the most reliable? a. Verbal…

A: Please see the next step for the solution

Q: Match each example audit procedure with its correct general audit objective related to accounts…

A: A) Existence of assets: This refers to the verification of whether assets recorded in the financial…

Q: ient’s treasurer. d. A check, issued by the company and bearing the payee’s endorsement, that is…

A: Given: To explain the correct option among the given options as,

Q: In auditing the client’s receivables, the auditor decided to select entries in the sales journal and…

A: Assertion of Existence: Assets or liabilities of the company exist at a given date, and recorded…

Q: When auditing the cash account, the auditor traces the cash receipts, which are recorded on the cash…

A: Auditing refers to the process of physically evaluating and inspecting all the financial information…

Q: When auditing contingent liabilities, which of the following procedures would be MOST effective? a.…

A: One kind of potential financial obligation known as a contingent liability is one that is predicated…

Q: basic step in auditing unclaimed salaried and wages is to verify disposition of the account…

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

Q: An auditor tested the client's internal controls over granting customers credit and establishing…

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

Q: An auditor had decided to use probability-proportional-to-size (PPS) sampling, also called…

A: Probability-proportional to size (PPS) sampling is a method of sampling under which the probability…

Q: Which of the following procedures would most likely be performed during planning?a. Surprise…

A: Identifying related parties would most likely be performed during planning.

Q: Describe TWO (2) substantive testing procedures an auditor could employ to verify each of the…

A: i. Revenue and Accounts Receivable: 1. Analytical Review: The auditor would examine the changes in…

Q: Assertion: Existence of accounts receivable Which of the following represents the substantive…

A: Audit procedureMethods and techniques used by the auditor to gather the appropriate evidence so that…

Q: determine its proper allowance for loan losses

A: Option a is wrong because by making visits to the business sites, auditor cannot help in determining…

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

A: Audit is the process of checking and verifying the financial statements in business and to analyse…

Q: not a procedure used by an auditor in searching for unrecorded disposals of long-lived assets?

A: Option a is wrong because the examination of property tax records provides information on tax on…

Q: risk over the cash disbursement function, the auditor notes a delay in recording disbursements. This…

A: when talking about control risk it is the risk that a material misstatement could occur this may be…

Q: On receiving the bank cutoff statement, the auditor should trace:

A: A bank cut off statement is the statement of bank as on a specified date which is subsequent to the…

Q: Which of the following audit procedures is aimed most directly at testing the completeness assertion…

A: For acco payable auditor should  perform  appropriate  audit procedure  for testing  completeness…

Q: For which of the following audit tests would an auditor most likely use attribute sampling?…

A: Audit tests: An audit test is a sample drawn from a larger population with the intention of testing…

Q: After completing a horizontal and vertical analysis of the Balance Sheet and Income Statement.  It…

A: The answer is stated below:

Q: You are assigned to audit Ignation Inc. for the year ended June 30, 2022. Prior to any adjustments,…

A: Aging of accounts receivable: The aging of accounts receivable is the balance sheet method of…

Q: Which of the following conditions identified during fieldwork of an audit is most likely to affect…

A: The correct answer is: (D) Missing documents  Missing documents would most likely affect the…

Q: For each of the following audit procedures, state which type of evidence-gathering technique is…

A: As per our protocol we provide solution to the first three sub-parts only but you have asked…

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: would help an auditor determine whether accounts payable have been misstated?     Examining…

A: Accounts payable (AP) is the sum owed to creditors and suppliers by a corporation (also referred to…