OX | ChatG ChatG U RealEs New ta Inbox M Inbox Week a single Q single...

 

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OX | ChatG ChatG U RealEs New ta Inbox M Inbox Week a single Q single P Pea $449?module_item_id=828652 A G VERABLES Chapter 7 Question 7-28 The following are examples of audit procedures: 1. Watch employees count inventory to determine whether company procedures are being followed. 2. Count a sample of inventory items and record the amount in the audit files. 3. Calculate the ratio of sales commission expense to sales as a test of sales commissions. 4. Review the accounts receivable with the credit manager to evaluate their collectability. 5. Compare a duplicate sales invoice with the sales journal for customer name and amount. 6. Obtain a written statement from a bank stating that the client has $15,671 on deposit and liabilities of $500,000 on a demand note. 7. Add the sales journal entries to determine whether they were correctly totaled. 8. Obtain a letter from the client's attorney addressed to the CPA firm stating that the attorney is not aware of any existing lawsuits. 9. Extend the cost of inventory times the quantity on an inventory listing to test whether it is accurate. & 7 fg f8 * nainte That f10 f11 DDI 8 9 f12 12 99+ Submit c delete + = backspace OX | ChatG ChatG U RealEs New ta Inbox M Inbox Week a single Q single P Pea $449?module_item_id=828652 A G VERABLES Chapter 7 Question 7-28 The following are examples of audit procedures: 1. Watch employees count inventory to determine whether company procedures are being followed. 2. Count a sample of inventory items and record the amount in the audit files. 3. Calculate the ratio of sales commission expense to sales as a test of sales commissions. 4. Review the accounts receivable with the credit manager to evaluate their collectability. 5. Compare a duplicate sales invoice with the sales journal for customer name and amount. 6. Obtain a written statement from a bank stating that the client has $15,671 on deposit and liabilities of $500,000 on a demand note. 7. Add the sales journal entries to determine whether they were correctly totaled. 8. Obtain a letter from the client's attorney addressed to the CPA firm stating that the attorney is not aware of any existing lawsuits. 9. Extend the cost of inventory times the quantity on an inventory listing to test whether it is accurate. & 7 fg f8 * nainte That f10 f11 DDI 8 9 f12 12 99+ Submit c delete + = backspace

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Okay lets go through the examples of audit procedures and identify which ones are correct 1 Correct ... View the full answer