Which of the following audit procedures provides the most reliable audit evidence when testing the existence of
Question:
Which of the following audit procedures provides the most reliable audit evidence when testing the existence of cash? Inquiry with the Treasury Staff Accountant regarding the bank statement balance Inspection of the entity’s bank statement provided by the client Observation of the Treasury Manager accessing the entity’s online banking portal External confirmation of the entity’s account balance directly with the bank
Assume you are performing external confirmation procedures on trade receivables as of December 31, 2021. You reviewed returned confirmations and performed additional procedures, if necessary. Which of the following is an exception indicative of a potential misstatement?
I. A variance between the recorded receivable amount and confirmed amount below AMPT.
II. Lack of response to a positive confirmation where the engagement team was unable to perform alternative procedures.
III. A confirmation had to be sent again because the initial returned confirmation was signed but not completed; the resent confirmation was returned and agreed to the recorded amount.
IV. A positive confirmation was not returned and, instead, the engagement team vouched the customer invoice to the underlying sales document and subsequent cash receipt as alternative procedures
I and II
I and IV
II and III
III and IV
Assume you are performing external confirmation procedures on trade receivables as of December 31, 2021. You reviewed returned confirmations and performed additional procedures, if necessary. Which of the following is an exception indicative of a potential misstatement?
I. A variance between the recorded receivable amount and confirmed amount below AMPT.
II. Lack of response to a positive confirmation where the engagement team was unable to perform alternative procedures.
III. A confirmation had to be sent again because the initial returned confirmation was signed but not completed; the resent confirmation was returned and agreed to the recorded amount.
IV. A positive confirmation was not returned and, instead, the engagement team vouched the customer invoice to the underlying sales document and subsequent cash receipt as alternative procedures
I and II
I and IV
II and III
III and IV
Assume you are performing external confirmation procedures on trade receivables as of December 31, 2021. You reviewed returned confirmations and performed additional procedures, if necessary. Which of the following is an exception indicative of a potential misstatement?
I. A variance between the recorded receivable amount and confirmed amount below AMPT.
II. Lack of response to a positive confirmation where the engagement team was unable to perform alternative procedures.
III. A confirmation had to be sent again because the initial returned confirmation was signed but not completed; the resent confirmation was returned and agreed to the recorded amount.
IV. A positive confirmation was not returned and, instead, the engagement team vouched the customer invoice to the underlying sales document and subsequent cash receipt as alternative procedures
I and II
I and IV
II and III
III and IV
Assume you are performing external confirmation procedures on trade receivables as of December 31, 2021. You reviewed returned confirmations and performed additional procedures, if necessary. Which of the following is an exception indicative of a potential misstatement?
I. A variance between the recorded receivable amount and confirmed amount below AMPT.
II. Lack of response to a positive confirmation where the engagement team was unable to perform alternative procedures.
III. A confirmation had to be sent again because the initial returned confirmation was signed but not completed; the resent confirmation was returned and agreed to the recorded amount.
IV. A positive confirmation was not returned and, instead, the engagement team vouched the customer invoice to the underlying sales document and subsequent cash receipt as alternative procedures
I and II
I and IV
II and III
III and IV
Assume you are performing external confirmation procedures on trade receivables as of December 31, 2021. You reviewed returned confirmations and performed additional procedures, if necessary. Which of the following is an exception indicative of a potential misstatement?
I. A variance between the recorded receivable amount and confirmed amount below AMPT.
II. Lack of response to a positive confirmation where the engagement team was unable to perform alternative procedures.
III. A confirmation had to be sent again because the initial returned confirmation was signed but not completed; the resent confirmation was returned and agreed to the recorded amount.
IV. A positive confirmation was not returned and, instead, the engagement team vouched the customer invoice to the underlying sales document and subsequent cash receipt as alternative procedures
I and II
I and IV
II and III
III and IV
Assume you are performing external confirmation procedures on trade receivables as of December 31, 2021. You reviewed returned confirmations and performed additional procedures, if necessary. Which of the following is an exception indicative of a potential misstatement?
I. A variance between the recorded receivable amount and confirmed amount below AMPT.
II. Lack of response to a positive confirmation where the engagement team was unable to perform alternative procedures.
III. A confirmation had to be sent again because the initial returned confirmation was signed but not completed; the resent confirmation was returned and agreed to the recorded amount.
IV. A positive confirmation was not returned and, instead, the engagement team vouched the customer invoice to the underlying sales document and subsequent cash receipt as alternative procedures
I and II
I and IV
II and III
III and IV
Assume you are performing external confirmation procedures on trade receivables as of December 31, 2021. You reviewed returned confirmations and performed additional procedures, if necessary. Which of the following is an exception indicative of a potential misstatement?
I. A variance between the recorded receivable amount and confirmed amount below AMPT.
II. Lack of response to a positive confirmation where the engagement team was unable to perform alternative procedures.
III. A confirmation had to be sent again because the initial returned confirmation was signed but not completed; the resent confirmation was returned and agreed to the recorded amount.
IV. A positive confirmation was not returned and, instead, the engagement team vouched the customer invoice to the underlying sales document and subsequent cash receipt as alternative procedures
I and II
I and IV
II and III
III and IV
Assume you are performing external confirmation procedures on trade receivables as of December 31, 2021. You reviewed returned confirmations and performed additional procedures, if necessary. Which of the following is an exception indicative of a potential misstatement?
I. A variance between the recorded receivable amount and confirmed amount below AMPT.
II. Lack of response to a positive confirmation where the engagement team was unable to perform alternative procedures.
III. A confirmation had to be sent again because the initial returned confirmation was signed but not completed; the resent confirmation was returned and agreed to the recorded amount.
IV. A positive confirmation was not returned and, instead, the engagement team vouched the customer invoice to the underlying sales document and subsequent cash receipt as alternative procedures
I and II
I and IV
II and III
III and IV
Assume you are performing external confirmation procedures on trade receivables as of December 31, 2021. You reviewed returned confirmations and performed additional procedures, if necessary. Which of the following is an exception indicative of a potential misstatement?
I. A variance between the recorded receivable amount and confirmed amount below AMPT.
II. Lack of response to a positive confirmation where the engagement team was unable to perform alternative procedures.
III. A confirmation had to be sent again because the initial returned confirmation was signed but not completed; the resent confirmation was returned and agreed to the recorded amount.
IV. A positive confirmation was not returned and, instead, the engagement team vouched the customer invoice to the underlying sales document and subsequent cash receipt as alternative procedures
I and II
I and IV
II and III
Assume you are performing external confirmation procedures on trade receivables as of December 31, 2021. You reviewed returned confirmations and performed additional procedures, if necessary. Which of the following is an exception indicative of a potential misstatement?
I. A variance between the recorded receivable amount and confirmed amount below AMPT.
II. Lack of response to a positive confirmation where the engagement team was unable to perform alternative procedures.
III. A confirmation had to be sent again because the initial returned confirmation was signed but not completed; the resent confirmation was returned and agreed to the recorded amount.
IV. A positive confirmation was not returned and, instead, the engagement team vouched the customer invoice to the underlying sales document and subsequent cash receipt as alternative procedures
I and II
I and IV
II and III
III and IV
Assume you are performing external confirmation procedures on trade receivables as of December 31, 2021. You reviewed returned confirmations and performed additional procedures, if necessary. Which of the following is an exception indicative of a potential misstatement?
I. A variance between the recorded receivable amount and confirmed amount below AMPT.
II. Lack of response to a positive confirmation where the engagement team was unable to perform alternative procedures.
III. A confirmation had to be sent again because the initial returned confirmation was signed but not completed; the resent confirmation was returned and agreed to the recorded amount.
IV. A positive confirmation was not returned and, instead, the engagement team vouched the customer invoice to the underlying sales document and subsequent cash receipt as alternative procedures
I and II
I and IV
II and III
III a
Assume you are performing external confirmation procedures on trade receivables as of December 31, 2021. You reviewed returned confirmations and performed additional procedures, if necessary. Which of the following is an exception indicative of a potential misstatement?
I. A variance between the recorded receivable amount and confirmed amount below AMPT.
II. Lack of response to a positive confirmation where the engagement team was unable to perform alternative procedures.
III. A confirmation had to be sent again because the initial returned confirmation was signed but not completed; the resent confirmation was returned and agreed to the recorded amount.
IV. A positive confirmation was not returned and, instead, the engagement team vouched the customer invoice to the underlying sales document and subsequent cash receipt as alternative procedures
I and II
I and IV
II and III
III and IV
Assume you are performing external confirmation procedures on trade receivables as of December 31, 2021. You reviewed returned confirmations and performed additional procedures, if necessary. Which of the following is an exception indicative of a potential misstatement?
I. A variance between the recorded receivable amount and confirmed amount below AMPT.
II. Lack of response to a positive confirmation where the engagement team was unable to perform alternative procedures.
III. A confirmation had to be sent again because the initial returned confirmation was signed but not completed; the resent confirmation was returned and agreed to the recorded amount.
IV. A positive confirmation was not returned and, instead, the engagement team vouched the customer invoice to the underlying sales document and subsequent cash receipt as alternative procedures
I and II
I and IV
II and III
III and IV
Assume you are performing external confirmation procedures on trade receivables as of December 31, 2021. You reviewed returned confirmations and performed additional procedures, if necessary. Which of the following is an exception indicative of a potential misstatement?
I. A variance between the recorded receivable amount and confirmed amount below AMPT.
II. Lack of response to a positive confirmation where the engagement team was unable to perform alternative procedures.
III. A confirmation had to be sent again because the initial returned confirmation was signed but not completed; the resent confirmation was returned and agreed to the recorded amount.
IV. A positive confirmation was not returned and, instead, the engagement team vouched the customer invoice to the underlying sales document and subsequent cash receipt as alternative procedures
I and II
I and IV
II and III
Auditing and Assurance Services A Systematic Approach
ISBN: 978-1259162343
9th edition
Authors: William Messier, Steven Glover, Douglas Prawitt