Auditing And Assurance Services
17th Edition
ISBN: 9780134897431
Author: ARENS, Alvin A.
Publisher: PEARSON
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Chapter 18, Problem 18.1MCQ
To determine
Indicate the
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Which assertion is most likely being tested when an auditor vouches transactions from the sales Journal to the sales orders?
a. cutoff
b. rights
c. completeness
d. accuracy
In order to determine whether accounts payable are understated, auditors wish to obtain a sample of purchase transactions from suppliers and how they were recorded in the accounting books.
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,
sampling is the best mechanism to obtain this type of samples. a
.
discovery b
.
attributes c
.
random digits d
.
variables
Your audit client is under intense pressure to meet an earnings target. Which transaction assertion for purchases is most at risk.
Occurrence
Accuracy
Completeness
Classification
Chapter 18 Solutions
Auditing And Assurance Services
Ch. 18 - List five asset accounts, three liability...Ch. 18 - Prob. 2DQPCh. 18 - Prob. 3DQPCh. 18 - Prob. 4DQPCh. 18 - Prob. 5DQPCh. 18 - Prob. 6DQPCh. 18 - Prob. 7DQPCh. 18 - Prob. 8DQPCh. 18 - Prob. 9DQPCh. 18 - Prob. 10DQP
Ch. 18 - Prob. 11DQPCh. 18 - Prob. 13DQPCh. 18 - Prob. 14DQPCh. 18 - Prob. 15DQPCh. 18 - Prob. 16.1MCQCh. 18 - Prob. 16.2MCQCh. 18 - Prob. 16.3MCQCh. 18 - Prob. 17.1MCQCh. 18 - Prob. 17.2MCQCh. 18 - Prob. 17.3MCQCh. 18 - Prob. 18.1MCQCh. 18 - Prob. 18.2MCQCh. 18 - Prob. 18.3MCQCh. 18 - Prob. 19DQPCh. 18 - Prob. 20DQPCh. 18 - Prob. 21DQPCh. 18 - Prob. 22DQPCh. 18 - The following misstatements are included in the...Ch. 18 - Prob. 24DQPCh. 18 - Prob. 25DQPCh. 18 - Prob. 26DQPCh. 18 - Prob. 27DQPCh. 18 - Prob. 28DQPCh. 18 - Prob. 30C
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Similar questions
- An audit procedure that involves taking a sample of recorded transactions and obtaining original source documents supporting the recorded transactions is referred to as what? a. vouching b. directional testing c. a walk-through d. tracingarrow_forwardWhich of the following audit procedures uses “a purchase transaction” as the sampling unit? A. Trace customer orders to the purchase journal. B. Trace purchase transactions from the purchase journal to the customer orders. C. All of the options use “a purchase transaction” as the sampling unit. D. Trace receiving reports to the purchase journal. E. Examine purchase orders for evidence of the manager’s approval.arrow_forwardof stion For a sample of sales transactions selected from the sales journal, verify that the amount of the transaction has been recorded in the correct customer account in the accounts receivable subledger. Choose the Audit Objective: Choose the specific audit objective →arrow_forward
- When auditing accounts receivables, auditors are usually especially concerned about the: a. Completeness and cut-off objectives. b. Existence and completeness objectives. c. Existence, realisable-value and accuracy objectives. d. Posting and summarisation objective.arrow_forwardthe auditor is verifying whether all goods received by the company have been recorded appropriately. The source document that the auditor would test would most likely be the a. Supplier invoicesb. Purchase ordersc. Receiving reportsd. Check vouchersarrow_forwardThe auditor verifying whether all goods received by the company have been recorded appropriately. The source document that the auditor would test would mostly likely be the? A. Supplier Invoice B. Purchase Orders C. Receiving Reports D. Check Vouchersarrow_forward
- Auditors try to identify predictable relationships when using analytical procedures. Relationships involving transactions from which of the following accounts would most likely yield the highest level of evidence? a. Accounts receivable. O b. Interest expense. O c. Travel and entertainment expense. O d. Accounts payable.arrow_forwardIn a test of controls, auditors may trace receiving reports to vouchers recorded in the voucher register. This is a test fora. Occurrence.b. Completeness.c. Classification.d. Cutoff.arrow_forwardDiscuss the meaning of the following terms and how they apply to auditing accounts receivable: a. tie-in b. completeness c. existence d. accuracy e. rights f. realizable value g. cutoff h. classification Please provide references.arrow_forward
- Which of the following audit procedures represent a substantive test of transaction that would validate managements assertion on occurrence of a purchase transaction a. Comparing the classification of the transaction based on the supplier's invoice with the company’s chart of accounts. b. Recalculation of the supplier's invoice to check its mathematical accuracy. c. Reviewing and scanning of the purchases journal for large or unusual amounts. d. Tracing from the file of receiving reports to the purchases journalarrow_forwardYour audit client is under intense pressure to meet an earnings target. Which transaction assertion for purchases is most at risk.arrow_forwardCAATS (Computer Assisted Auditing Techniques) can be used in all of the following ways when gathering evidence except: Multiple Choice For the selection of accounts receivable, loans, or other receivables for confirmation. For matching vendor invoices with supporting purchase orders and receiving reports. For the development of expectations when performing analytical procedures. For scanning inventory quantities for negative balance.arrow_forward
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