What computer- based files might auditors examine to find evidence of unrecorded sales? Of inadequate credit checks? Of incorrect product unit prices?
Answer to relevant QuestionsSuppose that you selected a sample of customers’ accounts receivable and wanted to find supporting evidence for the entries in the accounts. Where would you go to vouch the debit entries? What would you expect to find? ...What is dual- direction test of controls sampling?What are the goals of dual- direction testing regarding an audit of the accounts receivable and cash collection system?Which of the following internal control activities will most likely prevent the concealment of a cash shortage by improperly writing off a trade account receivable? a. Write- offs must be approved by a responsible officer ...Which of the following might be detected by auditors’ cutoff review and examination of sales journal entries for several days prior to the balance sheet date? a. Lapping year- end accounts receivable. b. Inflating sales ...
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