What are the goals of dual- direction testing regarding an audit of the accounts receivable and cash collection system?
Answer to relevant QuestionsIn the case of Bill Often, Bill Early, what information might have been obtained from inquiries? From tests of controls? From observations? From confirmations?The control procedure “credit sales approved by credit department” is directed toward which transaction assertion? a. Occurrence b. Completeness c. Accuracy d. CutoffTo conceal a theft involving receivables, a dishonest bookkeeper might charge which of the following accounts? a. Miscellaneous income. b. Petty cash. c. Miscellaneous expense. d. Sales returns.In the audit of accounts receivable, the most important emphasis should be on the a. Completeness assertion. b. Existence assertion. c. Rights and obligations assertion. d. Presentation and disclosure assertion.An audit client sells 15 to 20 units of product annually. A large portion of the annual sales occur in the last month of the fiscal year. Annual sales have not materially changed over the past five years. Which of the ...
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