Exam 7: Revenue and Collection Cycle 279

Favorite Soda Company distributes beverages in the Portland, Oregon area. Which of the following would be the test to determine that shipments made were actual sales?

Sales are normally recorded on the date of the:

Vouching debits from a sample selection of customers' accounts receivable records to supporting sales invoices is an audit procedure designed to obtain evidence about the assertion of:

The auditor maintains control of the mailing and receipt of confirmations by typically performing all of the following except:

An auditor should normally perform alternative procedures to substantiate the existence of accounts receivable when:

The most effective audit procedure for determining the collectability of an account receivable is the:

Which of the following responses to an accounts receivable confirmation at December 31 would cause an audit team the most concern?

Which of the following controls is designed to meet the completeness assertion?

Confirmations of accounts receivable provide the most evidence for which of the following assertions?

Which of the following internal control activities will most likely prevent the concealment of a cash shortage by improperly writing off a trade account receivable?

An audit team is auditing sales transactions. One step is to vouch a sample of debit entries from the accounts receivable subsidiary ledger back to the supporting sales invoices. The purpose of this audit procedure is to establish that:

Confirmations provide evidence of _______ and, to a limited extent, _______ of accounts and notes receivable.

Confirmation of individual accounts receivable balances directly with debtors will, of itself, normally provide the strongest evidence concerning the:

Which of the following procedures would an auditor most likely perform for year-end accounts receivable confirmations when the auditor did not receive replies to second requests?