Exam 14: Audit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests of Transactions

Which of the following test of controls is useful to test the completeness objective for cash receipts?

(Multiple Choice)

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Question 101

To test for recorded sales for which there were no actual shipments, the auditor vouches from the:

(Multiple Choice)

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Question 102

When assessing planned control risk for sales, the auditor is concerned about proper authorization at three key points.Discuss each of these three points.

(Essay)

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Question 103

The receipt of a customer order from a customer is the starting point for the entire sales and collection cycle.

(True/False)

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Question 104

When auditing sales returns and allowances, the emphasis is normally on testing the completeness objective.

(True/False)

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Question 105

The auditor's primary concern in performing audit procedures of the write-off of uncollectible accounts relates to the risk that the client writes offs customer accounts that have already been collected.The primary control for preventing this fraud is:

(Multiple Choice)

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Question 106

When processing and recording cash receipts, an important fact to consider is:

(Multiple Choice)

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Question 107

A credit memo is a document used internally that indicates authority to write-off an account receivable as uncollectible.

(True/False)

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Question 108

Explain what lapping means, and discuss the internal control deficiency that allows it to occur.Also discuss the procedures the auditor can perform to detect lapping.

(Essay)

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Question 109

Showing 101 - 109 of 109

Which of the following test of controls is useful to test the completeness objective for cash receipts?

To test for recorded sales for which there were no actual shipments, the auditor vouches from the:

When assessing planned control risk for sales, the auditor is concerned about proper authorization at three key points.Discuss each of these three points.

The receipt of a customer order from a customer is the starting point for the entire sales and collection cycle.

When auditing sales returns and allowances, the emphasis is normally on testing the completeness objective.

The auditor's primary concern in performing audit procedures of the write-off of uncollectible accounts relates to the risk that the client writes offs customer accounts that have already been collected.The primary control for preventing this fraud is:

When processing and recording cash receipts, an important fact to consider is:

A credit memo is a document used internally that indicates authority to write-off an account receivable as uncollectible.

Explain what lapping means, and discuss the internal control deficiency that allows it to occur.Also discuss the procedures the auditor can perform to detect lapping.

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

Internal Control, Control Risk, and Section 404 Audits

Fraud Auditing

The Impact of Information Technology on the Audit Process

Overall Audit Strategy and Audit Program

Audit Sampling for Tests of Controls and Substantive Tests of Transactions

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

Audit Sampling for Tests of Details of Balances

Audit of the Acquisition and Payment Cycle: Tests of Controls, Substantive Tests of Transactions, and Accounts Payable

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 and Repayment Cycle

Audit of Cash and Financial Instruments

Completing the Audit

Other Assurance Services

Internal and Governmental Financial Auditing and Operational Auditing

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