Auditing And Assurance Services
Auditing And Assurance Services
17th Edition
ISBN: 9780134897431
Author: ARENS, Alvin A.
Publisher: PEARSON
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Chapter 16, Problem 6RQ
To determine

Identify the nine accounts receivable balance related audit objectives.

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State four specific balance-related audit objectives for accounts payable and, for each objective, describe one common test of details of balances. (Auditing problem)
Below are five audit procedures, all of which are tests of transactions associated with the audit of the acquisition and payment cycle. Also below are the six general transaction-related audit objectives and the five management assertions. For each audit procedure, indicate (1) its audit objective, and (2) the management assertion being tested. Audit Objectives: A.  Occurrence B.  Completeness C.  Accuracy D.  Posting and Summarization E.  Classification F.  Timing Management Assertions: V.  Occurrence W.  Completeness X.  Accuracy Y.  Classification Z.  Cutoff Audit Procedures 1.  Foot the purchases journal and trace the totals to the related general ledger accounts.  __________________    ______________________  2.  Recompute the cash discounts taken by the client.  _____________________   _________________________ 3.  Compare dates on cancelled checks with the bank cancellation date.  _________________   __________________________ 4.  Trace from a sample of cancelled checks to the…
The following are specific balance-related audit objectives applied to the audit of accounts receivable (a. through i.) and management assertions about account balances (1 through 6). The list referred to in the specific balance-related audit objectives is the list of the accounts receivable from each customer at the balance sheet date. i (Click the icon to view the audit objectives.) i (Click the icon to view the management assertions.) Requirement For each specific balance-related audit objective, identify the appropriate management assertion. (Hint: See table.) Specific balance-related audit objective There are no unrecorded receivables. b. Uncollectible accounts have been provided for. C. Receivables that have become uncollectible have been written off. d. All accounts on the list are expected to be collected within 1 year. The total of the amounts on the accounts receivable listing agrees with the general ledger balance for accounts receivable. a. e. Management assertion
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