Exam 13: Completing tests in the sales and collection cycle: Accounts receivable

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Communication addressed to the debtor requesting confirmation on whether the balance as stated on the communication is correct or incorrect is known as a:

(Multiple Choice)

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Question 101

A positive confirmation is more reliable evidence than a negative confirmation because:

(Multiple Choice)

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Question 102

Which one of the following would NOT be a part of the approach used in determining the reasonableness of cutoff?

(Multiple Choice)

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Question 103

What is the most important test of details of balances for accounts receivable?

(Multiple Choice)

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Question 104

Planned detection risk and planned evidence are directly related; that is, as planned detection risk increases, planned audit evidence for tests of details of balances also increases.

(True/False)

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Question 105

Describe how the auditor tests the rights objective for accounts receivable.

(Essay)

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Question 106

The audit working papers often include a client-prepared, aged trial balance of accounts receivable as of the balance sheet date.This aging is BEST used by the auditor to:

(Multiple Choice)

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Question 107

If the client's internal control for recording sales returns and allowances is evaluated as effective:

(Multiple Choice)

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Question 108

Assuming the client's internal controls are adequate, describe how the auditor can verify proper cutoff of sales transactions.

(Essay)

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Question 109

Showing 101 - 109 of 109

Communication addressed to the debtor requesting confirmation on whether the balance as stated on the communication is correct or incorrect is known as a:

A positive confirmation is more reliable evidence than a negative confirmation because:

Which one of the following would NOT be a part of the approach used in determining the reasonableness of cutoff?

What is the most important test of details of balances for accounts receivable?

Planned detection risk and planned evidence are directly related; that is, as planned detection risk increases, planned audit evidence for tests of details of balances also increases.

Describe how the auditor tests the rights objective for accounts receivable.

The audit working papers often include a client-prepared, aged trial balance of accounts receivable as of the balance sheet date.This aging is BEST used by the auditor to:

If the client's internal control for recording sales returns and allowances is evaluated as effective:

Assuming the client's internal controls are adequate, describe how the auditor can verify proper cutoff of sales transactions.

Demand for audit and assurance services

Auditors’ legal environment

Audit quality and ethics

Audit responsibilities and objectives

Audit evidence

Audit planning and documentation

Materiality and risk

Internal control and control risk

Fraud auditing

The impact of information technology on the audit process

Overall audit plan and audit program

Audit of the sales and collection cycle: Tests of controls and substantive tests of transactions

Audit sampling

Audit of transaction cycles and financial statement balances I

Audit of transaction cycles and financial statement balances II

Completing the audit

Audit reporting

Other auditing and assurance engagements

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