Exam 6: Completing the Tests in the Sales and Collection Cycle: Accounts Receivable, Audit Sampling for Tests of Details of Balances, and Audit of the Acquisition and Payment Cycle

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A threefold approach is typically followed when determining the reasonableness of cutoff. Briefly describe the threefold approach.

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Question 1

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First, auditors should decide on the appropriate cutoff criteria. Second, they must evaluate whether the client has established adequate procedures to ensure a reasonable cutoff. Finally, auditors must test whether a reasonable cutoff was obtained.

Attributes sampling tables can be used to evaluate results of tests of details with ARACR being replaced with ARIA.

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Question 2

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Tests of controls for the acquisition and payment cycle are usually divided into:

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Question 3

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Cutoff misstatements occur when:

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Question 4

The most important controls over cash disbursements include all but which of the following?

(Multiple Choice)

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Question 5

If acceptable audit risk is increased, ARIA should be:

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Question 6

The most effective test of details of accounts receivable is the:

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Question 7

How might the auditor determine whether a client has limited rights to accounts receivable?

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Question 8

Discuss the difference in the auditor's approach to the audit of assets and the audit of liabilities.

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Question 9

An auditor using nonstatistical sampling cannot formally measure sampling error and therefore must subjectively consider the possibility that the True population misstatement exceeds a tolerable amount. Which of the following factors should be considered by the auditor in making this assessment?

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Question 10

Which department should initiate a report when goods arrive from a vendor?

(Multiple Choice)

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Question 11

Which of the following items is not needed to apply MUS?

(Short Answer)

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Question 12

Which of the following is the least important consideration in determining the sample size of confirmations?

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Question 13

Calculating the sample size using monetary unit sampling depends on which of the following factors?

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Question 14

Which of the following is not a balance- related audit objective evaluated in the audit of accounts receivable?

(Multiple Choice)

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Question 15

Which of the following statements is False?

(Multiple Choice)

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Question 16

Which of the following is not a balance- related audit objective evaluated in the audit of accounts receivable?

(Multiple Choice)

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Question 17

What is the purpose of applying stratified sampling to a population?

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Question 18

Explain ARIA and ARIR within the context of variables sampling.

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Question 19

As the acceptable risk of incorrect acceptance is reduced, the required sample size:

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Question 20

Showing 1 - 20 of 51

A threefold approach is typically followed when determining the reasonableness of cutoff. Briefly describe the threefold approach.

Attributes sampling tables can be used to evaluate results of tests of details with ARACR being replaced with ARIA.

Tests of controls for the acquisition and payment cycle are usually divided into:

Cutoff misstatements occur when:

The most important controls over cash disbursements include all but which of the following?

If acceptable audit risk is increased, ARIA should be:

The most effective test of details of accounts receivable is the:

How might the auditor determine whether a client has limited rights to accounts receivable?

Discuss the difference in the auditor's approach to the audit of assets and the audit of liabilities.

An auditor using nonstatistical sampling cannot formally measure sampling error and therefore must subjectively consider the possibility that the True population misstatement exceeds a tolerable amount. Which of the following factors should be considered by the auditor in making this assessment?

Which department should initiate a report when goods arrive from a vendor?

Which of the following items is not needed to apply MUS?

Which of the following is the least important consideration in determining the sample size of confirmations?

Calculating the sample size using monetary unit sampling depends on which of the following factors?

Which of the following is not a balance- related audit objective evaluated in the audit of accounts receivable?

Which of the following statements is False?

Which of the following is not a balance- related audit objective evaluated in the audit of accounts receivable?

What is the purpose of applying stratified sampling to a population?

Explain ARIA and ARIR within the context of variables sampling.

As the acceptable risk of incorrect acceptance is reduced, the required sample size:

The Demand for Audit, Cpa Profession, Audit Reports and Other Assurance Services

Professional Ethics, Legal Liability, Audit Responsibilities and Objectives

Audit Evidence, Audit Planning, Analytical Procedures, Materiality and Risk

Internal Control, Control Risk, Section 404 Audits, Fraud Auditing, and the Impact of Information Technology on the Audit Process

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

Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts, Audit of the Payroll and Personnel Cycle, Audit of the Inventory and Warehousing Cycle

Audit of the Capital Acquisition, Repayment, Audit of Cash and Financial Instruments, and Completing the Audit

Other Assurance Services, Internal and Governmental Financial Auditing and Operations Auditing

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