Following is a list of audit procedures used as tests of controls in the revenue process. 1.

Question:

Following is a list of audit procedures used as tests of controls in the revenue process.

1. Observing and evaluating segregation of duties.

2. Testing of whether sales invoices are supported by authorized customer orders and shipping documents.

3. Reviewing client’s procedures for accounting for the numerical sequence of shipping documents.

4. Examining sales orders for proper credit approval.

5. Recomputing the information on copies of sales invoices.

6. Comparing the average days outstanding in accounts receivable with industry averages.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Auditing And Assurance Services A Systematic Approach

ISBN: 9780073526904

6th Edition

Authors: William F. Messier

See More Books

Question Posted: May 10, 2024 09:03 AM

See More Questions

In Parts I and II of this case, you performed preliminary analytical procedures and assessed acceptable audit risk and inherent risk for Pinnacle Manufacturing. Your team has been assigned the...
Refer to Exhibit 6.5 to identify the nine types of audit procedures used as part of the audit evidence-gathering process. Following is a list of audit procedures performed. For each procedure (listed...
1. A key internal control in the revenue process is the separation of duties between cash handling and record keeping. The objective most directly associated with this control is to verify that a....
The following are some examples of typical business transactions: 1. Purchased office equipment on credit. 2. The owner contributed capital. 3. Purchased office furniture for cash. 4. Received...
A rotating flywheel slows down at a constant rate due to friction in its bearings. After 1 min, its angular velocity has diminished to 0.80 of its initial value . At the end of the third minute, what...
The following timeplot shows a portion of the month-to-month changes in the value of shipments of computers and electronics (after seasonal adjustment, as used in the text of this chapter). The...
The chi-square distribution is symmetric. In Exercises 11 and 12, determine whether the statement is true or false. If the statement is false, rewrite it as a true statement.
Jason Tierro, an inventory clerk at Lexmar Company, is responsible for taking a physical count of the goods on hand at the end of the year. He has been performing this duty for several years. This...
D Question 12 Take Quiz 3 pts Plizazo Retail wants to formally evaluate their total cost of a stockout. Here is the information provided: 60 percent of all stockouts result in a back order, and a...
In obtaining evidence in support of financial statement assertions, the auditor develops specific audit procedures to access those assertions.
What is an auditors evaluation of a statistical sample for attributes when a test of 50 documents results in three deviations if the tolerable deviation rate is 7 percent, the expected population...
Suppose that X and Y have a continuous joint distribution for which the joint p.d.f. is Where a 0. Find the marginal distributions of X and Y. fotherwise
Wildhorse Company has a unit selling price of $720, unit variable costs of $380, and fixed costs of $196,520. Compute the break-even point in sales units using (a) the mathematical equation and (b)...
On 1 January 2019 the carrying value of equipment was R19 720 (cost price, R25 670 and accumulated depreciation, R5 950). On 1 January 2019 equipment costing R5 670 was purchased (not included in the...
AT-bill with a face value $10,000 and 120 days to maturity is selling at a bank discount ask yield of 2%. a. What is the price of the bill? b. What is its bond equivalent yield?
a. If =2.5, find P(X = 8). c. If = 0.5, find P(X = 3).
1.Is the use of AI technology for work automation unethical? Why or why not? 2.Is the use of AI technology for work automation unethical? Why or why not? 3.Why should businesses and governments find...
A piece of experimental apparatus is located where g = 9.5 m/s2 and the temperature is 5C. An air flow inside the apparatus is determined by measuring the pressure drop across an orifice with a...
Vectors are drawn from the center of a regular n-sided polygon in the plane to the vertices of the polygon. Show that the sum of the vectors is zero.

Following is a list of audit procedures used as tests of controls in the revenue process. 1.

Question:

Step by Step Answer:

Auditing And Assurance Services A Systematic Approach

Students also viewed these Business questions