Question 1

Which of the following would be least likely to diminish the validity of evidence obtained through confirmation of accounts receivable?

Accepted Answer

A)  The confirmation requests are sent on the client's letterhead. 
B)  The confirmation requests are mailed to customers by the internal auditors. 
C)  The client's mailroom personnel closely monitor and inspect confirmation requests during mailing. 
D)  The return address on the envelope used to send the confirmation request is that of the client. 
A)  The confirmation requests are sent on the client's letterhead. 
B)  The confirmation requests are mailed to customers by the internal auditors. 
C)  The client's mailroom personnel closely monitor and inspect confirmation requests during mailing. 
D)  The return address on the envelope used to send the confirmation request is that of the client.

Question 2

Which procedure would be of most assistance to an auditor discovering a large credit sale that has erroneously been recorded twice?

Accepted Answer

A)  Footing the sales journal. 
B)  Confirming accounts receivable. 
C)  Tracing the total sales in the sales journal to the general ledger. 
D)  Observation of the physical inventory count at year-end. 
A)  Footing the sales journal. 
B)  Confirming accounts receivable. 
C)  Tracing the total sales in the sales journal to the general ledger. 
D)  Observation of the physical inventory count at year-end.

Question 3

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?

Accepted Answer

A)  A substantial number of accounts are in disputes. 
B)  The combination of inherent risk and control risk is high. 
C)  Client records include a large number of relatively small balances. 
D)  The auditors believe that recipients of the requests are unlikely to give them consideration. 
A)  A substantial number of accounts are in disputes. 
B)  The combination of inherent risk and control risk is high. 
C)  Client records include a large number of relatively small balances. 
D)  The auditors believe that recipients of the requests are unlikely to give them consideration.

Question 4

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?

Accepted Answer

A)  Investigate confirmation exceptions for indication of amounts in dispute. 
B)  Review accounts which have been written off as uncollectible prior to year-end. 
C)  Investigate credit ratings for large accounts receivable. 
D)  Discuss with the credit manager the current status of doubtful accounts. 
A)  Investigate confirmation exceptions for indication of amounts in dispute. 
B)  Review accounts which have been written off as uncollectible prior to year-end. 
C)  Investigate credit ratings for large accounts receivable. 
D)  Discuss with the credit manager the current status of doubtful accounts.

Which of the following would be least likely to diminish the validity of evidence obtained through confirmation of accounts receivable?

Which procedure would be of most assistance to an auditor discovering a large credit sale that has erroneously been recorded twice?

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

The Role of the Public Accountant in the American Economy

Professional Standards

Professional Ethics

Legal Liability of Cpas

Audit Evidence and Documentation

Planning the Audit; Linking Audit Procedures to Risk

Internal Control

Consideration of Internal Control in an Information Technology Environment

Audit Sampling

Cash and Financial Investments

Inventories and Cost of Goods Sold

Property, Plant, and Equipment: Depreciation and Depletion

Accounts Payable and Other Liabilities

Debt and Equity Capital

Auditing Operations and Completing the Audit

Auditors Report

Integrated Audits of Public Companies

Additional Assurance Services: Historical Financial Information

Additional Assurance Services: Other Information

Internal, Operational, and Compliance Auditing

Filters

Exam 11: Accounts Receivable, Notes Receivable, and Revenue

Which of the following would be least likely to diminish the validity of evidence obtained through confirmation of accounts receivable?

Which procedure would be of most assistance to an auditor discovering a large credit sale that has erroneously been recorded twice?

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

The Role of the Public Accountant in the American Economy

Professional Standards

Professional Ethics

Legal Liability of Cpas

Audit Evidence and Documentation

Planning the Audit; Linking Audit Procedures to Risk

Internal Control

Consideration of Internal Control in an Information Technology Environment

Audit Sampling

Cash and Financial Investments

Inventories and Cost of Goods Sold

Property, Plant, and Equipment: Depreciation and Depletion

Accounts Payable and Other Liabilities

Debt and Equity Capital

Auditing Operations and Completing the Audit

Auditors Report

Integrated Audits of Public Companies

Additional Assurance Services: Historical Financial Information

Additional Assurance Services: Other Information

Internal, Operational, and Compliance Auditing

Filters