Question 1

For which of the following accounts is cutoff least important?

Accepted Answer

A) sales 
B) sales returns and allowances 
C) cash collections 
D) inventory 
A) sales 
B) sales returns and allowances 
C) cash collections 
D) inventory

Question 2

Auditors must maintain control of confirmations until they are returned from the customer.

Accepted Answer

A) True 
 B)False

Question 3

When sending confirmations during most audits of accounts receivable,the emphasis is often on confirming larger and older accounts.

Accepted Answer

A) True 
 B)False

Question 4

Tests of the presentation and disclosure-related objectives are generally done as part of the completion phase of the audit.

Accepted Answer

A) True 
 B)False

Question 5

The net realizable value of accounts receivable is equal to:

Accepted Answer

A) gross accounts receivable less allowance for uncollectible accounts. 
B) gross accounts receivable less bad debt expense. 
C) gross accounts receivable less returns and allowances. 
D) gross accounts receivable less sales discounts. 
A) gross accounts receivable less allowance for uncollectible accounts. 
B) gross accounts receivable less bad debt expense. 
C) gross accounts receivable less returns and allowances. 
D) gross accounts receivable less sales discounts.

Question 6

Which of the following is likely to be determined first when performing tests of details for accounts receivable?

Accepted Answer

A) Recorded accounts receivable exist. 
B) Accounts receivable in the aged trial balance agree with related master file amounts,and the total is correctly added and agrees with the general ledger. 
C) The client has a right to the accounts receivable. 
D) Existing accounts receivable are included. 
A) Recorded accounts receivable exist. 
B) Accounts receivable in the aged trial balance agree with related master file amounts,and the total is correctly added and agrees with the general ledger. 
C) The client has a right to the accounts receivable. 
D) Existing accounts receivable are included.

Question 7

Match between columns
                        Premises: a listing of the balances in the accounts receivable master file at the balance sheet date broken down according to the amount of time that has passed between the date of sale and the balance sheet date
a letter,addressed to the debtor,requesting the recipient to fill in the amount of the accounts receivable balance.
the follow-up of a positive confirmation not returned by the debtor with the use of documentation evidence to determine whether the recorded receivable exists
a letter,addressed to the debtor,requesting a response only if the recipient disagrees with the amount of the stated account balance
a reported difference in a confirmation from a debtor that is determined to be a timing difference between the client's and debtor's records and therefore not a misstatement
a letter,addressed to the debtor,requesting that the recipient indicate directly on the letter whether the stated account balance is correct or incorrect and,if incorrect,by what amount
misstatements that take place as a result of current period transactions being recorded in a subsequent period or subsequent period transactions being recorded in the current period

Accepted Answer

The Answer of negative confirmation and invoice confirmation and evidence is...

Question 8

When determining the timing of the accounts receivable confirmations,

Accepted Answer

A) the receivables cannot be confirmed at an interim date. 
B) if accounts receivable are confirmed before year-end,the auditor typically prepares a roll-forward schedule. 
C) if the receivables are confirmed at an interim date,they must also be confirmed at year-end. 
D) if internal controls are adequate,the accounts receivable must be confirmed at year-end. 
A) the receivables cannot be confirmed at an interim date. 
B) if accounts receivable are confirmed before year-end,the auditor typically prepares a roll-forward schedule. 
C) if the receivables are confirmed at an interim date,they must also be confirmed at year-end. 
D) if internal controls are adequate,the accounts receivable must be confirmed at year-end.

Question 9

Tests of which balance-related audit objective are normally performed first in an audit of the sales and collection?

Accepted Answer

A) accuracy 
B) completeness 
C) rights 
D) detail tie-in 
A) accuracy 
B) completeness 
C) rights 
D) detail tie-in

Question 10

Confirmation of accounts receivable provide evidence related to the ________ objectives.

Accepted Answer

A) existence 
B) accuracy 
C) cutoff 
D) all if the above 
A) existence 
B) accuracy 
C) cutoff 
D) all if the above

Question 11

Communication addressed to the debtor requesting him or her to confirm whether the balance as stated on the communication is correct or incorrect is a

Accepted Answer

A) representation letter. 
B) negative confirmation. 
C) bank confirmation. 
D) positive confirmation. 
A) representation letter. 
B) negative confirmation. 
C) bank confirmation. 
D) positive confirmation.

Question 12

Discuss the alternative procedures an auditor can perform to test the existence objective for accounts receivable when customers do not respond to confirmation requests.

Accepted Answer

For any positive confirmation not return

For which of the following accounts is cutoff least important?

Auditors must maintain control of confirmations until they are returned from the customer.

When sending confirmations during most audits of accounts receivable,the emphasis is often on confirming larger and older accounts.

Tests of the presentation and disclosure-related objectives are generally done as part of the completion phase of the audit.

The net realizable value of accounts receivable is equal to:

Which of the following is likely to be determined first when performing tests of details for accounts receivable?

When determining the timing of the accounts receivable confirmations,

Tests of which balance-related audit objective are normally performed first in an audit of the sales and collection?

Confirmation of accounts receivable provide evidence related to the ________ objectives.

Communication addressed to the debtor requesting him or her to confirm whether the balance as stated on the communication is correct or incorrect is a

Discuss the alternative procedures an auditor can perform to test the existence objective for accounts receivable when customers do not respond to confirmation requests.

The Demand for Audit and Other Assurance Services

The Cpa Profession

Audit Reports

Professional Ethics

Legal Liability

Audit Responsibilities and Objectives

Audit Evidence

Audit Planning and Analytical Procedures

Materiality and Risk

Fraud Auditing

Internal Control and Coso Framework

Assessing Control Risk and Reporting on Internal Controls

Overall Audit Strategy and Audit Program

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:

Audit of the Payroll and Personnel Cycle

Audit of the Inventory and Warehousing Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash and Financial Instruments

Completing the Audit

Other Assurance Services

Internal and Governmental Financial Auditing and Operational Auditing

Filters

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

For which of the following accounts is cutoff least important?

Auditors must maintain control of confirmations until they are returned from the customer.

When sending confirmations during most audits of accounts receivable,the emphasis is often on confirming larger and older accounts.

Tests of the presentation and disclosure-related objectives are generally done as part of the completion phase of the audit.

The net realizable value of accounts receivable is equal to:

Which of the following is likely to be determined first when performing tests of details for accounts receivable?

When determining the timing of the accounts receivable confirmations,

Tests of which balance-related audit objective are normally performed first in an audit of the sales and collection?

Confirmation of accounts receivable provide evidence related to the ________ objectives.

Communication addressed to the debtor requesting him or her to confirm whether the balance as stated on the communication is correct or incorrect is a

Discuss the alternative procedures an auditor can perform to test the existence objective for accounts receivable when customers do not respond to confirmation requests.

The Demand for Audit and Other Assurance Services

The Cpa Profession

Audit Reports

Professional Ethics

Legal Liability

Audit Responsibilities and Objectives

Audit Evidence

Audit Planning and Analytical Procedures

Materiality and Risk

Fraud Auditing

Internal Control and Coso Framework

Assessing Control Risk and Reporting on Internal Controls

Overall Audit Strategy and Audit Program

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:

Audit of the Payroll and Personnel Cycle

Audit of the Inventory and Warehousing Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash and Financial Instruments

Completing the Audit

Other Assurance Services

Internal and Governmental Financial Auditing and Operational Auditing

Filters