State one test of control and one substantive test of transactions that the auditor can use to

Question:

State one test of control and one substantive test of transactions that the auditor can use to verify the following sales transaction-related audit objective:
Recorded sales are stated at the proper amounts.

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 an integrated approach

ISBN: 978-0132575959

14th Edition

Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley

See More Books

Question Posted: Oct 10, 2012 07:42 AM

See More Questions

List several audit procedures that the auditor can use to determine whether all cash received was recorded.
Distinguish between a test of control and a substantive test of transactions. Give two examples of each.
List several audit procedures that the auditor can use to determine whether payroll transactions are recorded at the proper amounts.
Verify that the functions are probability density functions for a continuous random variable X over the given interval. Determine the specified probability. f(x) = xe over [0, ), P(1 X 3)
Find all solutions to the following in parametric form in two ways. (a) 3x + y = 2 (b) 2x + 3y = 1 (c) 3x - y + 2z = 5 (d) x - 2y + 5z = 1
Decision significance: How significant is this decision for the project or organization? If the quality of the decision is important to the success of the project or organization, the leader has to...
Suppose the USGA tests four different brands (A, B, C, D) of golf balls and two different clubs (driver, five-iron) in a 4 * 2 factorial design. Each of the eight Brand-Club combinations (treatments)...
You are considering adding a new software title to those published by your highly successful software company. If you add the new product, it will use capacity on your disk duplicating machines that...
MacKenzie Company sold $800 of merchandise to a customer who used a Regional Bank credit card. Regional Bank charges a 2.0% fee for sales on its credit cards. The journal entry to record this sales...
A thick steel sheet of area 400 cm2 is exposed to air near the ocean. After a one-year period it was found to experience a weight loss of 375 g due to corrosion. To what rate of corrosion, in both...
List the transaction-related audit objectives for the audit of sales transactions. For each objective, state one internal control that the client can use to reduce the likelihood of misstatements.
List the most important duties that should be segregated in the sales and collection cycle. Explain why it is desirable that each duty be segregated.
Using the high-low points method. Compute the fixed and variable elements of the indirect labor cost, using the high-low points method.
Use Table 19-4 to calculate the building, contents, and total property insurance premiums for the policy (in $). Area Structural Rating Class Building Value 4 B $86,000 $ Building Premium Contents...
What are some reasons why leadership theory has evolved? Which theory of leadership is most applicable to today's organizations? Identify a leader that you admire and answer the following: What makes...
Identifying one major OSHA standard and one EPA law that are important to aviation and discussing how each has improved aviation safety
What is network optimization and what are some of the best practices that are used in the industry to optimize networks? Also, why is network documentation important and what are the security...
Demonstrate your understanding of data types by examining a public dataset and identifying the NOIR analytical data types of each of the data field (variables). This skill will be used frequently in...
Under marginal-costing technique, fi xed costs are charged off to revenue fully during the period in which they are incurred but not taken into account for valuing inventories. True/False
Do public and private companies follow the same set of accounting rules? Explain.
Find and discuss recent examples of adjudications by the ASA (or the equivalent regulatory body in your own country) of advertisements in a variety of media. Do you agree with its judgement?
Included in the December 31, 2013, inventory of the Wholeridge Supply Company are 2,600 deluxe ring binders in the amount of $5,902. An examination of the most recent acquisitions of binders showed...
Below are four independent client scenarios: 1. Colburn Pharmacy, Inc., has 77 stores located in the New England area. Approximately 60 percent of the inventory recorded on the balance sheet for the...
In an annual audit at December 31, 2013, you find the following transactions near the closing date: 1. Merchandise costing $625 was received on December 28, 2013, and the invoice was not recorded....
Assume that gasoline costs $ 3 . 2 0 per gallon and you plan to keep either car for six years. How many miles per year would you need to drive to make the decision to buy the hybrid worthwhile,...
On January 1 , 2 0 2 4 , Pine Company owns 4 0 percent ( 1 2 0 , 0 0 0 shares ) of Seacrest, Incorporated, which it purchased several years ago for $ 6 7 8 , 0 0 0 . Since the date of acquisition,...
Typical impact on product costs from implementing ABC include: a. Shifting of manufacturing overhead costs from low volume products to high-volume products. b. Decreases in per unit costs of high...

State one test of control and one substantive test of transactions that the auditor can use to

Question:

Step by Step Answer:

Tests of controls 1 On a sample of sales invoices exa...View the full answer

Auditing and Assurance services an integrated approach

Students also viewed these Auditing questions