Exam 7: Revenue and Collection Cycle 279

While performing interim audit procedures of accounts receivable, numerous unexpected errors are found resulting in a change of risk assessment. Which of the following audit responses would be most appropriate?

(Multiple Choice)

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Question 41

Information about the internal control system can be gathered by completing an _______.

(Short Answer)

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Question 42

In the revenue and collection cycle, the order of the activities in the cycle is best illustrated by:

(Multiple Choice)

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Question 43

A customer reply on a positive confirmation says "We dispute the $250 charge. We believe it is excessive." This confirmation:

(Multiple Choice)

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Question 44

In evaluating the adequacy of the allowance for doubtful accounts, an auditor most likely reviews the entity's aging of receivables to support management's financial statement assertion of:

(Multiple Choice)

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Question 45

Which of the following statements is correct concerning the use of negative confirmation requests?

(Multiple Choice)

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Question 46

The ___ confirmation form is used when individual balances are _ or accounts are in _____.

(Short Answer)

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Question 47

_______ may be used to access computerized receivable files to select and print confirmations.

(Short Answer)

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Question 48

Which of the following is the best reason for prenumbering in sequence such documents as sales orders, shipping documents, and sales invoices?

(Multiple Choice)

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Question 49

The auditor selects a sample of recorded sales invoices and vouches them to shipping documents. This procedure is related to which of the following assertions?

(Multiple Choice)

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Question 50

The document that generates recording of a sale is the:

(Multiple Choice)

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Question 51

Which of the following controls most likely would help ensure that all credit sales transactions of an entity are recorded?

(Multiple Choice)

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Question 52

A procedure to gather evidence on both account balances and controls is called a _______ procedure.

(Short Answer)

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Question 53

When auditing the revenue and collection cycle, auditors normally select balances to confirm from the:

(Multiple Choice)

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Question 54

The actions in tests of controls involve ___, _, _, _ and _____.

(Short Answer)

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Question 55

Assertions related to account balances are ___, _, _ _, _ and ___.

(Short Answer)

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Question 56

The financial records of the Movitz Company show that Mr. Dennis owes $4,100 on an account receivable. An independent audit is being carried out and the auditors send a positive confirmation to Mr. Dennis. What is the most likely reason as to why a positive confirmation rather than a negative confirmation was used here?

(Multiple Choice)

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Question 57

When an account receivable is considered uncollectible, the person who generally authorizes the write-off is the client's:

(Multiple Choice)

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Question 58

__________ of accounts receivable records implies the power to alter them directly or enter transactions to alter them.

(Short Answer)

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Question 59

Which of the following would be the best protection for a company that wishes to prevent the "lapping" of trade accounts receivable?

(Multiple Choice)

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Question 60

Showing 41 - 60 of 95

While performing interim audit procedures of accounts receivable, numerous unexpected errors are found resulting in a change of risk assessment. Which of the following audit responses would be most appropriate?

Information about the internal control system can be gathered by completing an _______.

In the revenue and collection cycle, the order of the activities in the cycle is best illustrated by:

A customer reply on a positive confirmation says "We dispute the $250 charge. We believe it is excessive." This confirmation:

In evaluating the adequacy of the allowance for doubtful accounts, an auditor most likely reviews the entity's aging of receivables to support management's financial statement assertion of:

Which of the following statements is correct concerning the use of negative confirmation requests?

The ___ confirmation form is used when individual balances are _ or accounts are in _____.

_______ may be used to access computerized receivable files to select and print confirmations.

Which of the following is the best reason for prenumbering in sequence such documents as sales orders, shipping documents, and sales invoices?

The auditor selects a sample of recorded sales invoices and vouches them to shipping documents. This procedure is related to which of the following assertions?

The document that generates recording of a sale is the:

Which of the following controls most likely would help ensure that all credit sales transactions of an entity are recorded?

A procedure to gather evidence on both account balances and controls is called a _______ procedure.

When auditing the revenue and collection cycle, auditors normally select balances to confirm from the:

The actions in tests of controls involve ___, _, _, _ and _____.

Assertions related to account balances are ___, _, _ _, _ and ___.

When an account receivable is considered uncollectible, the person who generally authorizes the write-off is the client's:

__________ of accounts receivable records implies the power to alter them directly or enter transactions to alter them.

Which of the following would be the best protection for a company that wishes to prevent the "lapping" of trade accounts receivable?

Auditing and Assurance Services

Professional Standards

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash 227

Acquisition and Expenditure Cycle 336

Production Cycle 394

Finance and Investment Cycle 443

Completing the Audit 500

Reports on Audited Financial Statements

Filters

Exam 7: Revenue and Collection Cycle 279

While performing interim audit procedures of accounts receivable, numerous unexpected errors are found resulting in a change of risk assessment. Which of the following audit responses would be most appropriate?

Information about the internal control system can be gathered by completing an _______.

In the revenue and collection cycle, the order of the activities in the cycle is best illustrated by:

A customer reply on a positive confirmation says "We dispute the $250 charge. We believe it is excessive." This confirmation:

In evaluating the adequacy of the allowance for doubtful accounts, an auditor most likely reviews the entity's aging of receivables to support management's financial statement assertion of:

Which of the following statements is correct concerning the use of negative confirmation requests?

The _______ confirmation form is used when individual balances are _______ or accounts are in _______.

_______ may be used to access computerized receivable files to select and print confirmations.

Which of the following is the best reason for prenumbering in sequence such documents as sales orders, shipping documents, and sales invoices?

The auditor selects a sample of recorded sales invoices and vouches them to shipping documents. This procedure is related to which of the following assertions?

The document that generates recording of a sale is the:

Which of the following controls most likely would help ensure that all credit sales transactions of an entity are recorded?

A procedure to gather evidence on both account balances and controls is called a _______ procedure.

When auditing the revenue and collection cycle, auditors normally select balances to confirm from the:

The actions in tests of controls involve _______, _______, _______, _______ and _______.

Assertions related to account balances are _______, _______, _______ _______, _______ and _______.

When an account receivable is considered uncollectible, the person who generally authorizes the write-off is the client's:

__________ of accounts receivable records implies the power to alter them directly or enter transactions to alter them.

Which of the following would be the best protection for a company that wishes to prevent the "lapping" of trade accounts receivable?

Auditing and Assurance Services

Professional Standards

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash 227

Acquisition and Expenditure Cycle 336

Production Cycle 394

Finance and Investment Cycle 443

Completing the Audit 500

Reports on Audited Financial Statements

Filters

The ___ confirmation form is used when individual balances are _ or accounts are in _____.

The actions in tests of controls involve ___, _, _, _ and _____.

Assertions related to account balances are ___, _, _ _, _ and ___.