Exam 11: Accounts Receivable, notes Receivable, and Revenue

Which of the following fraudulent activities most likely could be perpetrated due to the lack of effective internal controls in the revenue cycle?

Which of the following revenue related transactions is not linked to the accounts indicated?

To obtain the best evidence regarding the completeness of recorded accounts receivable,the auditors:

Which of the following procedures is least likely to help auditors to assess the adequacy of management's accounting estimate of the allowance for doubtful accounts?

Which of the following is least likely to be used as an alternate procedure for handling nonreplies to accounts receivable confirmation requests?

Tracing recorded sales transactions to the bills of lading provides evidence about the:

The confirmation of accounts receivable is most closely associated with:

Tracing copies of sales invoices to shipping documents will provide evidence that all:

Which of the following is not true about the auditors' verification of notes receivable?

Which of the following manipulations would understate receivables on the financial statements?

What type of error is the CPA most likely to discover when he/she examines all shipping reports dated in January of 20X1,shipped FOB shipping point,which were recorded in December of 20X0 as credit sales?

The auditors obtain audit evidence for accounts receivable by using positive or negative confirmation requests.Under which of the following circumstances might the negative form of the accounts receivable confirmation be useful?

Which of the following would indicate the need to use positive accounts receivable confirmation requests?

Which of the following fraudulent activities most likely could be perpetrated due to the lack of effective internal control over the revenue cycle?

You were surprised to note that approximately 95% of returned positive accounts receivable confirmation requests indicated that the customers thought that they owed a larger balance than the amount that had been printed by your client on the confirmation.This might be explained by the fact that:

An auditor discovered that a client's accounts receivable turnover is substantially lower for the current year than for the prior year.This may indicate that:

Which of the following is most likely to be used in determining a proper amount to be included in the allowance for doubtful accounts?

If a company failed to record goods returned by customers near year end,the auditors would most likely discover this issue by:

Complex sales contracts are most likely to result in higher risks regarding all of the following except:

Confirmation of accounts receivable provides absolute assurance that no lapping or other manipulation affecting accounts receivable is being carried on.