Identify the option that an auditor would select a sample for internal controls are operated effectively to minimize instances of failures to invoice a shipment

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Answer 1

Question

Chapter 14, Problem 28DQP

a.

To determine

Identify the option that an auditor would select a sample for internal controls are operated effectively to minimize instances of failures to invoice a shipment

b.

To determine

Identify an option that auditor would select a sample of items to obtain audit evidence about the uncollected items in customers’ accounts shown by trade receivables.

c.

To determine

Identify an option that an auditor would select to assess that the internal controls are effectively operated to minimize the chances of failure of posting invoices to customers’ accounts receivables master file.

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The following are audit procedures in the sales and collectioncycle:1. Add the columns on the aged trial balance and compare the total with the generalledger.2. Examine a sample of shipping documents to determine whether each has a salesinvoice number included on it.3. Examine a sample of customer orders and see if each has a credit authorization.4. Compare the date on a sample of shipping documents a few days before and afterthe balance sheet date with related sales journal transactions.5. Discuss with the sales manager whether any sales allowances have been grantedafter the balance sheet date that may apply to the current period.6. Observe whether the controller makes an independent comparison of the total inthe general ledger with the trial balance of accounts receivable.7. Compare the date on a sample of shipping documents throughout the year withrelated duplicate sales invoices and the accounts receivable master file.8. Compute the ratio of allowance for uncollectible accounts…

The following are examples of audit procedures: Watch employees count inventory to determine whether company procedures are being followed. Count a sample of inventory items and record the amount in the audit files. Calculate the ratio of sales commission expense to sales as a test of sales commissions. Review the accounts receivable with the credit manager to evaluate their collectability. Compare a duplicate sales invoice with the sales journal for customer name and amount. Obtain a written statement from a bank stating that the client has $15,671 on deposit and liabilities of $500,000 on a demand note. Add the sales journal entries to determine whether they were correctly totaled. Obtain a letter from the client’s attorney addressed to the CPA firm stating that the attorney is not aware of any existing lawsuits. Extend the cost of inventory times the quantity on an inventory listing to test whether it is accurate. Obtain a letter from an…

You are the audit senior assigned to the audit of Fix-IT Ltd, a motor vehicle spares company.You obtain an understanding of the warehouse function within the revenue and receipts cycle at Fix-IT Ltd.The warehouse clerk accesses the internal sales order file with all the internal sales orders arranged by order numbers. They will then select the sales order for picking. Identify the type of access that the warehouse clerk should have to the internal sales order file. a. A. Read-only access b. B. Write-only access. C. D. Both write and read access d. C. No access

Answer 2

Question

Chapter 14, Problem 28DQP

a.

To determine

Identify the option that an auditor would select a sample for internal controls are operated effectively to minimize instances of failures to invoice a shipment

b.

To determine

Identify an option that auditor would select a sample of items to obtain audit evidence about the uncollected items in customers’ accounts shown by trade receivables.

c.

To determine

Identify an option that an auditor would select to assess that the internal controls are effectively operated to minimize the chances of failure of posting invoices to customers’ accounts receivables master file.

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Answer 3

Question

Chapter 14, Problem 28DQP

a.

To determine

Identify the option that an auditor would select a sample for internal controls are operated effectively to minimize instances of failures to invoice a shipment

b.

To determine

Identify an option that auditor would select a sample of items to obtain audit evidence about the uncollected items in customers’ accounts shown by trade receivables.

c.

To determine

Identify an option that an auditor would select to assess that the internal controls are effectively operated to minimize the chances of failure of posting invoices to customers’ accounts receivables master file.

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Answer 4

Question

Chapter 14, Problem 28DQP

a.

To determine

Identify the option that an auditor would select a sample for internal controls are operated effectively to minimize instances of failures to invoice a shipment

b.

To determine

Identify an option that auditor would select a sample of items to obtain audit evidence about the uncollected items in customers’ accounts shown by trade receivables.

c.

To determine

Identify an option that an auditor would select to assess that the internal controls are effectively operated to minimize the chances of failure of posting invoices to customers’ accounts receivables master file.

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Answer 5

Chapter 14, Problem 28DQP

a.

To determine

Identify the option that an auditor would select a sample for internal controls are operated effectively to minimize instances of failures to invoice a shipment

b.

To determine

Identify an option that auditor would select a sample of items to obtain audit evidence about the uncollected items in customers’ accounts shown by trade receivables.

c.

To determine

Identify an option that an auditor would select to assess that the internal controls are effectively operated to minimize the chances of failure of posting invoices to customers’ accounts receivables master file.

Answer 6

Chapter 14, Problem 28DQP

a.

To determine

Identify the option that an auditor would select a sample for internal controls are operated effectively to minimize instances of failures to invoice a shipment

Answer 7

Chapter 14, Problem 28DQP

a.

To determine

Identify the option that an auditor would select a sample for internal controls are operated effectively to minimize instances of failures to invoice a shipment

Answer 8

b.

To determine

Identify an option that auditor would select a sample of items to obtain audit evidence about the uncollected items in customers’ accounts shown by trade receivables.

Answer 9

b.

To determine

Identify an option that auditor would select a sample of items to obtain audit evidence about the uncollected items in customers’ accounts shown by trade receivables.

Answer 10

c.

To determine

Identify an option that an auditor would select to assess that the internal controls are effectively operated to minimize the chances of failure of posting invoices to customers’ accounts receivables master file.

Answer 11

c.

To determine

Identify an option that an auditor would select to assess that the internal controls are effectively operated to minimize the chances of failure of posting invoices to customers’ accounts receivables master file.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 14 - Describe the following documents and records and...Ch. 14 - Prob. 2RQ Ch. 14 - Prob. 3RQ Ch. 14 - Prob. 4RQ Ch. 14 - Prob. 5RQ Ch. 14 - Prob. 6RQ Ch. 14 - Prob. 7RQ Ch. 14 - Prob. 8RQ Ch. 14 - Prob. 9RQ Ch. 14 - Prob. 10RQ

Identify the option that an auditor would select a sample for internal controls are operated effectively to minimize instances of failures to invoice a shipment

Solution Summary: The author explains how an auditor would select a sample of transactions from the sales invoice file to verify that internal controls are operated effectively to minimize instances of failures.

Identify the option that an auditor would select a sample for internal controls are operated effectively to minimize instances of failures to invoice a shipment

Identify an option that auditor would select a sample of items to obtain audit evidence about the uncollected items in customers’ accounts shown by trade receivables.

Identify an option that an auditor would select to assess that the internal controls are effectively operated to minimize the chances of failure of posting invoices to customers’ accounts receivables master file.

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