When a client is attempting to rely on internal controls, which of the following could be a dual purpose test?

Group of answer choices

Inspection of Documents

Observation

Recalculation/Reperformance

All of the Answers are Correct

Which management assertion is an auditor MOST concerned with when auditing the Allowance for Doubtful Accounts?

Group of answer choices

Completeness

Valuation

Presentation and Disclosure

Existence

You have been asked to audit inventory on an audit engagement. Which of the following tests would be the MOST persuasive in determining whether the inventory balance on the balance sheet was accurate?

Group of answer choices

Sending out confirmations with inventory suppliers to verify amounts shipped and owed.

Physically examine the inventory doing test counts and comparing those counts with the subsidiary ledger that shows the inventory.

Vouching inventory amounts to supporting invoices, and purchase orders.

Footing the inventory subsidiary ledger that was provided by the client.

For what asset type is confirmation the most persuasive audit procedure?

Group of answer choices

Inventory

Prepaid Expenses

Accounts Receivable

Fixed Assets

Which of the following is NOT a reason that an audit firmwould set internal control risk to one?

Group of answer choices

The audit firm elects to not rely on internal controls.

All of the answers are a reason why an audit firm may set internal control risk at 1.

The audit firm does not believe it can rely on internal controls.

Prior year auditors relied on internal controls.