Question: Identify whether each audit procedure listed below is a test of control or a substantive test of transactions. The following questions deal with audit evidence

Identify whether each audit procedure listed below is a test of control or a substantive test of transactions.

Test of Control or Substantive Test? Audit Procedure Account for a sequence

The following questions deal with audit evidence for the revenue cycle. Choose the best response.

Test of Control or Substantive Test? Audit Procedure Account for a sequence of shipping documents and examine each one to make sure that a duplicate sales invoice is attached. Account for a sequence of sales invoices and examine each one to make sure that a duplicate copy of the shipping document is attached. Compare the quantity and description of items on shipping documents with the related duplicate sales invoices. Trace recorded sales in the sales journal to the related accounts receiv- able master file and compare the customer name, date, and amount for each one. Examine sales returns for approval by an authorized official. Review the prelisting of cash receipts to determine whether cash is prelisted daily. Reconcile the recorded cash receipts on the prelisting with the cash receipts journal and the bank statement for a one-month period.

Step by Step Solution

★★★★★

3.52 Rating (172 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Audit Procedure Test of Control or Substantive Test Account for a sequence of shipping documents and ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Auditing Assurance Services Questions!

The following are commonly performed tests of controls and substantive tests of transactions audit procedures in the sales and collection cycle: 1. Account for a sequence of shipping documents and...

The following are common audit procedures for tests of sales and cash receipts: 1. Compare the quantity and description of items on duplicate sales invoices with related shipping documents. 2. Trace...

According to ASA500 'Audit Evidence' - the auditor should obtain sufficient appropriate audit evidence on which to base their audit opinion. Required: For each audit procedure listed below, indicate:...

The following audit procedures are extracted from the audit program of Times Limited forthe year ended 31 March 2020. 1. Examine a sample of credit notes regarding bad debt written off for the...

10-21 (OBJECTIVES 19-1 Cing, CPA, in the procedures were planned by Linda whether she does 3. Examine invo invoice file at 1. plant, and equipment. Meliler the control is actually preventing ES 19-1,...

192 OBJECtIVES 191 192 193 195 The following audit procedures were planned by Linda King CPA in the audit of the acquisition and payment cycle for Cooley Products Inc 1 Review the acquisitions...

The following audit procedures were planned by Jack Kaguri, CPA, in the audit of the acquisition and payment cycle for DeWitt Products, Inc.: 1. Review the acquisitions journal for large and unusual...

Following are audit procedures commonly performed in the inventory and warehousing cycle for a manufacturing company 1 (Click the icon to view the audit procedures) Requirements a. Identify whether...

One Total: 20 marks The following audit procedures were planned by Mats, ACCA, in the audit of the business cycles for Keira Products, Inc.: 1) Trace a sample of sales transactions from sales...

1. Read the introduction to Philippians and the entire book of Philippians in the life application study bible (only four chapters). Pay special attention to 2:1-11. 2. Write an essay that explains...

Five cards are dealt from a well-shuffled pack of 52 cards. Calculate the probability of getting : (i) Three of a kind i.e five cards of one rank, the other two being of a different rank and unequal...

Ninja Co . will pay a dividend of $ 5 . 0 0 , which will increase by 9 percent each year over the following three years and then grow at an annual rate of 6 percent forever. You expect a 1 6 percent...

8.11 Are products with geographical indications actually superior to similar ones not originating from that geographical region? Is it ethical for makers of these products to command higher prices...

INTRODUCTION This case study focuses on the risk assessment stage of the audit. Each of the four parts deals largely with the material in the chapter to which that part relates. However, the parts...

Planning is one of the most demanding and important aspects of an audit. A carefully planned audit increases auditor efficiency and provides greater assurance that the audit team addresses the...

What is the difference between overall materiality and performance materiality? How does the use of performance materiality affect the audit process?

The Florida Division of McKenna Company makes and sells batteries that can either be sold to outside customers or transferred to the Alabama Division of McKenna Company. The following data are...

1, John is a philatelist (stamp collector) who specializes in stamps that depict animals on them. Last month 9 stamps with birds, 6 stamps with mammals, 4 stamps with insects, and 2 stamps with fish...

Esquire Products, Inc., expects the following monthly sales: January $ 28,000 July $ 22,000 February 19,000 August 26,000 March 12,000 September 29,000 April 14,000 October 34,000 May 8,000 November...