1. Consider the following statements:

I. For income-statement accounts, evidence relating to events at the balance-sheet date is considered to be more timely.

II. For balance-sheet accounts, evidence relating to items At the balance-sheet date is considered to be more timely.

a. I is true; II is true.

b. I is true; II is false.

c. I is false; II is true.

d. I is false; II is false.

2. Checking extensions of sales quantity and unit prices [multiplications] on sales invoices is what type of evidence?

a. Inspection of documents

b. Recalculation

c. Analytical review

d. Confirmation

e. None of the above

3. The auditor reviews the detail to the accounts receivable Account which has a general ledger balance of $100,000.

Detail Support

Customer Balance

A $50,000

B 40,000

C 30,000

D (20,000)

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Total $ 100,000

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a. Type of evidence Analytical Review; Accounts receivable to be reported on balance Sheet $100,000.

b. Type of evidence Analytical Review; Accounts receivable to be reported on balance Sheet $120,000.

c. Type of evidence Scanning; Accounts receivable to be reported on balance Sheet $100,000.

d. Type of evidence Scanning; Accounts receivable to be reported on balance Sheet $120,000.