State one test of control and one substantive test of transactions that the auditor can use to

Question:

State one test of control and one substantive test of transactions that the auditor can use to verify the following sales transaction-related audit objective:
Recorded sales are stated at the proper amounts.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Auditing and Assurance services an integrated approach

ISBN: 978-0132575959

14th Edition

Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley

See More Books

Question Posted: Oct 10, 2012 07:42 AM

See More Questions

List several audit procedures that the auditor can use to determine whether all cash received was recorded.
Distinguish between a test of control and a substantive test of transactions. Give two examples of each.
List several audit procedures that the auditor can use to determine whether payroll transactions are recorded at the proper amounts.
Verify that the functions are probability density functions for a continuous random variable X over the given interval. Determine the specified probability. f(x) = xe over [0, ), P(1 X 3)
Find all solutions to the following in parametric form in two ways. (a) 3x + y = 2 (b) 2x + 3y = 1 (c) 3x - y + 2z = 5 (d) x - 2y + 5z = 1
Cotner Clothes Inc. is considering the replacement of its old, fully depreciated knitting machine. Two new models are available: (a) Machine 190-3, which has a cost of $190,000, a 3-year expected...
If $A$ and $B$ are mutually exclusive events, $P(A)=0.45$, and $P(B)=0.30$, find (a) $P(\bar{A})$; (b) $P(A \cup B)$; (c) $P(A \cap \bar{B})$; (d) $P(\bar{A} \cap \bar{B})$.
Consider the quarterly sales data for Worthington Health Club shown here (also available on the worksheet C11P9 in the OM4 Data Workbook): a. Develop a four-period moving average model and compute...
Consider an agent with the following utility function: U = E(rp) 0.005A Consider that this agent wants to create an efficient portfolio and that her coefficient of risk aversion is 25. Compute the...
Suppose that in a production of spark plugs the fraction of defective plugs has been constant at over a long time and that this process is controlled every half hour by drawing and inspecting two...
List the transaction-related audit objectives for the audit of sales transactions. For each objective, state one internal control that the client can use to reduce the likelihood of misstatements.
List the most important duties that should be segregated in the sales and collection cycle. Explain why it is desirable that each duty be segregated.
Alcore Company estimates that 240,000 direct labour hours will be worked in the assembly department during 2012. Based on that, the following budgeted manufacturing overhead data are calculated: It...
A current of 2 . 1 6 is generated from a battery whose internal resistance is 0 . 8 5 . You measure the voltage across the battery terminals to be 1 0 . 8 6 V . What is the EMF of the battery?
If geographical barriers can negatively impact project outcomes, why do organizations have distributed teams? Should organizations that fit this profile avoid Agile? Explain your answer.
How Malaysian businesses can leverage cloud technology to survive, scale and grow in the 2023 extinction Digital innovation is one of the factors propelling enterprises?
If a . 5 kg toy car is rolling down a 3 0 - degree incline: a . What is the car s acceleration in the x direction? b . If the car sat at the top of the ramp at a height of 4 m , what distance does...
Is free speech absolute? How does the concept of free speech affect business? Why is the case of Brandenburg vs Ohio important? What is symbolic speech?
Which of the following is used for document style encoding? (a) @SOAPBinding(style = Style.RPC) (b) @SOAPBinding(style = Style.DOCUMENT) (c) @Binding(style = Style.DOCUMENT) (d) @SOAPBinding(style =...
For each of the following transactions, indicate whether it increases, decreases, or has no effect on the following financial ratios: current ratio, debt-to-equity ratio, profit margin ratio, and...
Find and discuss recent examples of adjudications by the ASA (or the equivalent regulatory body in your own country) of advertisements in a variety of media. Do you agree with its judgement?
Included in the December 31, 2013, inventory of the Wholeridge Supply Company are 2,600 deluxe ring binders in the amount of $5,902. An examination of the most recent acquisitions of binders showed...
Below are four independent client scenarios: 1. Colburn Pharmacy, Inc., has 77 stores located in the New England area. Approximately 60 percent of the inventory recorded on the balance sheet for the...
In an annual audit at December 31, 2013, you find the following transactions near the closing date: 1. Merchandise costing $625 was received on December 28, 2013, and the invoice was not recorded....
Concentric conducting spherical shells carry charges Q and -Q, respectively. The inner shell has negligible thickness. What is the potential difference between the shells? (Use the following as...
A client required an IP address from DHCP server, please list the steps of the DHCP process?
Bijan's pipelined processor features separate instruction and data caches. The instruction cache (I-cache) has a single level and the data cache (D-cache) has two levels, as shown in the figure...

State one test of control and one substantive test of transactions that the auditor can use to

Question:

Step by Step Answer:

Tests of controls 1 On a sample of sales invoices exa...View the full answer

Auditing and Assurance services an integrated approach

Students also viewed these Auditing questions