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.

Which of the following would provide an auditor with the most reliable evidence reguarding the existence of accounts receivable? A. A copy of the invoice sent to the customer. B. Acopy of the customer's sales order held by the client. C. An accounts receivable confirmation received  by the auditor from the client's customer. D. An aging schedule showing the composition of the year-end-accounts receivable balance.

An auditor is likely to perform each of the below procedures to obtain evidence regarding the potential understatement of accounts payable at year-end (i.e., the Completeness assertion) except…   Question options:   Inspect purchase orders and receiving reports for accounts payable recorded at year-end.   Inspect the open invoice file for invoices to be paid after year-end.   All options describe procedures that can be used to identify a potential understatement of accounts payable.   Analyze cash disbursements made during the first few weeks of the subsequent year and inspect supporting documentation for each disbursement.

Which of the following audit procedures is aimed most directly at testing the completeness assertion for accounts payable?     Footing the list of accounts payable.     Tracing shipping reports after year-end to related customer purchase orders and invoices.     Examining underlying documentation for cash disbursements in the period after year-end.     Tracing shipping reports issued on or before year-end to related customer purchase orders and invoices.

Which of the following procedures will an auditor most likely perform for year-endaccounts receivable confirmations when the auditor did not receive replies to secondrequests?(1) Review the cash receipts journal for the month prior to year end.(2) Intensify the study of internal control concerning the revenue cycle.(3) Inspect the shipping records documenting the merchandise sold to the debtors.(4) Increase the assessed level of detection risk for the existence assertion.

when auditing a client's year end cash balance, an auditor uses standard bank confirmations and performs tests on the clients year end bank reconciliations. These substantive procedures test which of the following assertions? a. understandability of presentation and classification b. cutoff c. completeness and valuation and allowance d. rights and obligations, and occurence

Which of the following tests of details most likely would help an auditor determine whether accounts payable have been misstated?a. Examining reported purchase returns that appear too low. b. Examining vendor statements for amounts not reported as purchases. c. Searching for customer-returned goods that were not reported as returns. d. Reviewing bank transfers recorded as cash received from customers.

When accounts receivable are confirmed at an interim date, auditors need not be concerned witha. Obtaining a summary of receivables transactions from the interim date to the year-end date.b. Obtaining a year-end trial balance of receivables, comparing it to the interim trial balance, and obtaining evidence and explanations for large variations. c. Sending negative confirmations to all customers as of the year-end date.d. Considering the necessity for some additional confirmations as of the balance sheet date if balances have increased materially

Explain why an auditor compares the “date of deposit accordingto the books” to the “date of disbursement according to the books” on an interbanktransfer schedule to detect kiting

Of the following, which is the best example of a substantive test?Select one:   a. Examining a sample of cash disbursements to testwhether expenses have been properly approved. b. Confirmation of balances of accounts receivable. c. Flowcharting of the client’s cash receipts system. d. Comparison of signatures on checks to a list ofauthorized signers.