The auditor decided to use "systematic sampling" to select a sample of numerical shipping documents. He/she decided on a sample of 175 shipping documents (Bills of Lading) as the appropriate sample size to test for proper shipping authorization. The first number used in this fiscal year was 515 and the last number used this year was 3664. After randomly selecting the number 13 from within the interval, are the 1st, 3rd and 5th shipping document numbers selected for testing.

	527, 563, and 599
	516, 552, and 588
	528, 564, and 600
	515, 551, and 587

What attribute is being tested in the following procedure?

"Select 50 invoices over $25,000 and check to see if the credit manager has approved the shipment by initialling the invoice." (2 marks)

	The 50 invoices.
	The credit manager him/herself.
	Credit manager's initials on the invoice.
	The value of the invoice.

Typically, what accounts receivable customer(s) does the auditor send a negative confirmation to?

	Customers with balances that extend past 90-days overdue.
	Large volume of customers with large balances.
	Large volume of customers with small balances.
	Customers designated as related parties.

If you find that the client you are currently auditing had paid an invoice twice and reported a debit balance in a vendor account, how should this debit balance be reported on the balance sheet?

	As a current asset.
	As a long-term asset on the balance sheet.
	As a reduction of sales.
	As an abnormal balance in the liabilities section.