Auditing And Assurance Services
17th Edition
ISBN: 9780134897431
Author: ARENS, Alvin A.
Publisher: PEARSON
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Question
Chapter 12, Problem 21DQP
a.
To determine
State the type of specific control activity or activities to which it applies such as adequate documents and records or physical control over assets and records.
b.
To determine
List the transaction-related audit objectives to which are applies on the given internal controls.
c.
To determine
Identify the specific misstatement that could result from the absence of the control for each given control.
d.
To determine
List one audit test that the auditor could use to uncover misstatements resulting from the absence of the control for the given internal controls.
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Students have asked these similar questions
Sandol Corporation has numerous customers. A customer file is kept on disk storage.
Each customer file contains name, address, credit limit, and account
balance. The auditor wishes to test this file to determine whether credit limits are being
exceeded. The best procedure for the auditor to follow would be to:
a. Develop test data that would cause some account balances to exceed the credit
limit and determine if the system properly detects such situations.
O b. Request a printout of a sample of account balances so they can be individually
checked against the credit limits.
c. Request a printout of all account balances so they can be manually checked
against the credit limits.
O d. Develop a program to compare credit limits with account balances and print out
the details of any account with a balance exceeding its credit limit.
"In order to determine whether internal control operated effectively to minimize errors of failure to
invoice a shipment, the auditor would select from a sample of transactions from the population
represented by the"
Customer order file.
Bill of lading file.
Subsidiary-ledger
Sales invoice file
The following internal controls were identified by the auditor while gaining an understanding of internal control for the sales cycle.
Access to the customer master file is restricted to authorized personnel. Customers are added to the master file only after appropriate approval, including adequate background and credit checks.
Sales are made only to approved customers. The computer system rejects orders if the customer number is invalid or the order exceeds the customer’s approved credit limit.
The computer matches the products and quantities on the customer order, shipping document, and sales invoice and generates an exception report of differences for follow-up in the accounting department.
The computer generates a daily list of unmatched shipping documents. The sales clerk follows up on each exception and electronically signs the report when they are resolved.
Invoice prices are obtained from the price master file. Any changes to the standard prices on an invoice must be…
Chapter 12 Solutions
Auditing And Assurance Services
Ch. 12 - Prob. 1RQCh. 12 - Prob. 2RQCh. 12 - Prob. 3RQCh. 12 - Describe how the nature of evidence used to...Ch. 12 - Prob. 5RQCh. 12 - Prob. 6RQCh. 12 - Prob. 7RQCh. 12 - Prob. 8RQCh. 12 - Prob. 9RQCh. 12 - Prob. 10RQ
Ch. 12 - Prob. 11RQCh. 12 - Prob. 12RQCh. 12 - Prob. 13RQCh. 12 - Prob. 14RQCh. 12 - Prob. 15RQCh. 12 - Prob. 16.1MCQCh. 12 - Prob. 16.2MCQCh. 12 - Prob. 16.3MCQCh. 12 - Prob. 17.1MCQCh. 12 - Prob. 17.2MCQCh. 12 - Prob. 17.3MCQCh. 12 - Prob. 18.1MCQCh. 12 - Prob. 18.2MCQCh. 12 - Prob. 18.3MCQCh. 12 - Prob. 19.1MCQCh. 12 - Prob. 19.2MCQCh. 12 - Prob. 19.3MCQCh. 12 - Prob. 20DQPCh. 12 - Prob. 21DQPCh. 12 - Prob. 22DQPCh. 12 - Prob. 23DQPCh. 12 - Prob. 24DQPCh. 12 - Prob. 25DQPCh. 12 - Prob. 26DQPCh. 12 - Prob. 27DQPCh. 12 - A CPAs client, Boos Baumkirchner, Inc., is a...Ch. 12 - Prob. 29DQPCh. 12 - Prob. 30DQPCh. 12 - Based on a cost-benefit analysis, management at...Ch. 12 - Prob. 32DQPCh. 12 - Prob. 33DQPCh. 12 - Prob. 34DQP
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