Auditing And Assurance Services
17th Edition
ISBN: 9780134897431
Author: ARENS, Alvin A.
Publisher: PEARSON
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Question
Chapter 14, Problem 7RQ
To determine
Explainprenumbered shipping documents and sales invoices help in prevention of misstatement of sales
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Students have asked these similar questions
An example of a preventive control in the expenditure cycle is:
A. Requiring management approval for large purchases
B. Regular inventory counts
C. Using firewalls and intrusion detection systems
D. Conducting vendor audits.
Explain how prenumbered shipping documents and sales invoicescan be useful controls for preventing misstatements in sales
Describe how prenumbered shipping papers and sales invoices may be effective controls for avoiding sales misstatements.
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
- How can a manual purchases cash disbursements system be reengineered to reduce discrepancies, be more accurate, and reduce processing costs?arrow_forward1. Which of the following is an example of an input control in the expenditure cycle? a. Physical controls over inventory b. Reconciling the bank statement c. Document sequencing d. Access controls over the purchasing system 2. A control procedure that helps prevent duplicate payments is: a. Performing physical inventory counts b. Matching purchase orders, receiving reports, and vendor invoices c. Reconciling bank statements d. Conducting vendor audits 3.Which of the following is an example of an independent verification control in the expenditure cycle? a. Document sequencing b. Reconciling the bank statement c. Segregation of duties d. Physical controls over inventoryarrow_forwardA serious exposure in the revenue cycle is customer dissatisfaction. What is the related threat and applicable control procedure that address this exposure? A. failure to bill; separation of billing and shipping functions B. failure to bill; bar-codes and RFID technology C. billing errors; reconciliation of shipping documents to sales order D. theft of cash; using ETFsarrow_forward
- Management and auditor are concerned about inventory control function in automated system? Why? How to mitigate this concern?arrow_forwardDiscuss how EDI dealing with sensitive information, such as inventory amounts and price data, is no longer private. What potential dangers exist if proper controls are not in place? Give an examplearrow_forward1. A threat in the expenditure cycle that involves unauthorized individuals making purchases is known as: A. Unauthorized access B. Fraudulent disbursements C. Data breaches D. Inventory theft 2. What is the first step in the expenditure cycle? A. Placing the purchase order B. Recording the transaction C. Authorizing the purchase D. Receiving goods or services 3. Which of the following is not a step in the expenditure cycle? A. Approving the purchase requisition B. Collecting cash from customers C. Receiving goods or services D. Recording the transaction in the general ledgerarrow_forward
- Discuss how EDI creates an environment in which sensitive information, such as inventory amounts and price data, is no longer private. What potential dangers exist if the proper controls are not in place? Give an example.arrow_forwardOne reason for inventory is to prevent shutdowns. How does the JIT approach to inventory management deal with this potential problem?arrow_forwardWhich of the following tests is directed towards the management assertion of completeness of sales? Question 19 options: 1) Checking mathematical accuracy of invoices. 2) Vouching sales recorded to invoices held. 3) Tracing delivery documents to invoices and sales recorded. 4) Vouching invoices to delivery documents. Next Pagearrow_forward
- An effective revenue security system will help you accomplish the following important tasks: a) Verification of product issues b) Verification of guest charges c) Verification of sales receipts d) Verification of sales deposits e) All of the abovearrow_forwardAll of the following are examples of sales order entry system controls except? Digital signatures/written signatures Credit Limits Approving invoices before paying Trainingarrow_forwardWhich of the following frames would best enable an auditor to test a sales/receivables system to determine that receivables are supported by all required documentation ? (a) Customer list (b) Sales invoice log Sales order log (d) Shipping logarrow_forward
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