Exam 10: Substantive Tests of Transactions and Balances

An auditor, having accounted for a sequence of inventory tags, traces information on a representative number of tags to the physical inventory sheets. The purpose of this procedure is to obtain assurance that:

All of the following evidence-gathering procedures can assist the auditor in testing the existence assertion for investment securities except:

The auditor is least likely to use generalised audit software to:

In a manufacturing company, which one of the following audit procedures would give the least assurance with regards to the valuation and allocation assertion for inventory?

Which of the following is not one of the auditor's primary objectives when externally confirming holdings of marketable securities?

From the auditor's point of view, inventory counts are more acceptable prior to the year-end when:

To test for unsupported entries in the ledger, the direction of audit testing should be from the:

Which of the following is an exception report that the auditor would generate using generalised audit software in order to test the valuation and allocation assertion for accounts receivable?

The auditor may conclude that depreciation charges are insufficient by noting:

Auditors often make use of computer programs that perform routine processing functions such as sorting and merging.These programs are made available by IT companies and others and are specifically referred to as:

The auditor is least likely to use generalised audit software to:

The auditor is least likely to learn of retirements of equipment through which of the following?

An auditor would be least likely to use confirmation in connection with the examination of:

Which of the following is the most effective audit procedure for verification of dividends earned on investments in marketable equity securities?

An auditor concluded that no excessive costs for idle plant were charged to inventory in a client's standard costing system. This conclusion most likely related to the auditor's objective to obtain evidence about the account balance Assertion for inventory of:

An auditor most likely would make inquiries of production and sales personnel concerning possible obsolete or slow-moving inventory to support management's account balance assertion of:

Tests designed to detect goods which arrived at the warehouse just before year end and for which the audit client took ownership that have not been recorded in the perpetual inventory records until the subsequent year would most Likely provide evidence about management's assertion of:

An auditor selected items that are on the store floor for test counts while observing a client's physical inventory.The auditor then traced the test counts to the client's inventory listing. This procedure most likely obtained evidence concerning management's assertion of:

An auditor should perform alternative procedures to substantiate the existence of an accounts receivable when:

Which of the following procedures would best detect the theft of valuable items from an inventory that consists of hundreds of different items selling for $1 to $10, and a few items selling for hundreds of dollars?