Exam 5: Overall Audit Strategy, Audit Program, Audit of the Sales and Collection Cycle, Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Which of the following is/are performed in an audit of internal control over financial reporting?

Prenumbered documents are intended to help:

Tests of details of balances focus on:

Which of the following is a point at which the auditor deems authorization to be critical?

Which of the following is not appropriate for purposes of testing the effectiveness of controls?

Sampling risk may be controlled by:

Auditing standards encourage, but do not require, a written audit program.

When selecting a sample, random numbers may be obtained either with replacement or without replacement. Although both selection methods are theoretically sound, auditors rarely use replacement sampling.

Which of the following types of procedures will be performed in an audit of internal control over financial reporting?

Which of the following methods of sample selection is appropriately used when selecting a random sample?

If sales invoices are automatically calculated and posted by a company's computer system, can the auditor reduce substantive tests of transactions for the accuracy objective?

Must auditors always perform tests of controls?

________ represents the auditor's measure of sampling risk.

The document that supports reductions in accounts receivable is the:

At what point in the sales and collection cycle does the company first give up assets?

Most companies recognize sales revenue when:

When testing the occurrence objective for sales, the auditor is concerned with the possibility of three types of misstatements. One type is sales being included in the journal for which no shipment was made. Discuss the other two types of misstatements.

Match each of the descriptions with the following terms for each of the documents and records -A document that accompanies the sales invoice mailed to the customer and which can be returned to the seller with the cash payment.

Which of the following is not one of the basic phases in audit sampling?

Substantive tests of transactions and substantive tests of details of balances are often conducted simultaneously.