Exam 16: Completing the Tests in the Sales and Collection Cycle: Accounts Receivable

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For sales,the completeness transaction-related audit objective affects the existence balance-related audit objective.

(True/False)

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Question 61

Audit procedures designed to uncover credit sales made after the client's fiscal year-end that relate to the current year being audited provide evidence for which of the following audit objectives?

(Multiple Choice)

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Question 62

A type of positive confirmation known as a blank confirmation

(Multiple Choice)

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Question 63

Which of the following audit procedures would normally be included in the audit plan when auditing the allowance for doubtful accounts?

(Multiple Choice)

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Question 64

A type of positive confirmation in which an individual invoice is confirmed,rather than the customer's entire accounts receivable balance is the ________ confirmation.

(Multiple Choice)

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Question 65

The understatement of sales and accounts receivable is best uncovered by

(Multiple Choice)

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Question 66

The auditor is reviewing the receivables listed on the aged trial balance for notes and related party receivables.Which balance-related audit objective is he trying to satisfy?

(Multiple Choice)

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Question 67

Tests of the realizable value balance-related audit objective are for the purpose of evaluating the allowance for doubtful accounts.

(True/False)

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Question 68

Which of the following is a correct statement regarding analytical procedures?

(Multiple Choice)

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Question 69

Confirmation of accounts receivable selected from the trial balance is the most common test of details of balances for the ________ of accounts receivable.

(Multiple Choice)

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Question 70

For most audits,a proper cash receipts cutoff is less important than either the sales or the sales returns and allowances cutoff since cash only affects the balance sheet,and not earnings.

(True/False)

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Question 71

If material,all of the following are required to be separately disclosed in the financial statements except for

(Multiple Choice)

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Question 72

Which audit procedure would be used to test for the existence balance-related audit objective?

(Multiple Choice)

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Question 73

An auditor is performing a credit analysis of customers with balances over 60 days due.She is most likely obtaining evidence for which audit related objective?

(Multiple Choice)

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Question 74

Most tests of accounts receivable are based on what schedule,file,or listing?

(Multiple Choice)

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Question 75

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

(Multiple Choice)

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Question 76

Describe each of the following types of confirmations: • positive confirmation • blank confirmation • invoice confirmation • negative confirmation

(Essay)

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Question 77

To determine if the client has rights to the accounts receivable on the trial balance,the auditor should inquire of management if any receivables are pledged or factored.

(True/False)

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Question 78

Favorable results from analytical procedures may reduce the extent to which the auditor needs to test details of balances.

(True/False)

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Question 79

The appropriate and sufficient evidence to be obtained from tests of details must be decided on an

(Multiple Choice)

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Question 80

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Exam 16: Completing the Tests in the Sales and Collection Cycle: Accounts Receivable

For sales,the completeness transaction-related audit objective affects the existence balance-related audit objective.

Audit procedures designed to uncover credit sales made after the client's fiscal year-end that relate to the current year being audited provide evidence for which of the following audit objectives?

A type of positive confirmation known as a blank confirmation

Which of the following audit procedures would normally be included in the audit plan when auditing the allowance for doubtful accounts?

A type of positive confirmation in which an individual invoice is confirmed,rather than the customer's entire accounts receivable balance is the ________ confirmation.

The understatement of sales and accounts receivable is best uncovered by

The auditor is reviewing the receivables listed on the aged trial balance for notes and related party receivables.Which balance-related audit objective is he trying to satisfy?

Tests of the realizable value balance-related audit objective are for the purpose of evaluating the allowance for doubtful accounts.

Which of the following is a correct statement regarding analytical procedures?

Confirmation of accounts receivable selected from the trial balance is the most common test of details of balances for the ________ of accounts receivable.

For most audits,a proper cash receipts cutoff is less important than either the sales or the sales returns and allowances cutoff since cash only affects the balance sheet,and not earnings.

If material,all of the following are required to be separately disclosed in the financial statements except for

Which audit procedure would be used to test for the existence balance-related audit objective?

An auditor is performing a credit analysis of customers with balances over 60 days due.She is most likely obtaining evidence for which audit related objective?

Most tests of accounts receivable are based on what schedule,file,or listing?

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

Describe each of the following types of confirmations: • positive confirmation • blank confirmation • invoice confirmation • negative confirmation

To determine if the client has rights to the accounts receivable on the trial balance,the auditor should inquire of management if any receivables are pledged or factored.

Favorable results from analytical procedures may reduce the extent to which the auditor needs to test details of balances.

The appropriate and sufficient evidence to be obtained from tests of details must be decided on an

The Demand for Audit and Other Assurance Services

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Audit Responsibilities and Objectives

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Materiality and Risk

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Audit of the Sales and Collection Cycle: Tests of Controls

Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Audit Sampling for Tests of Details of Balances

Audit of the Acquisition and Payment Cycle: Tests of Controls,

Completing the Tests in the Acquisition and Payment Cycle:

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