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1. Jack James is completing the audit of the purchases payables payments cycle. Which one of the following procedures that Jack is performing would test
1. Jack James is completing the audit of the purchases payables payments cycle. Which one of the following procedures that Jack is performing would test payables for completeness?
a) Select a sample of journal entries, match to a purchase and check to see if there is a corresponding purchase invoice for each.
b) Review the cash receipts journal subsequent to year end for unusual amounts and look for the date on the related invoice.
c) Select a sample of journal entries, match to a purchase and verify that there is a receiving document.
d) Review the cash disbursements journal subsequent to year end for large disbursements and look for the date on the related invoice.
2. Materiality for an audit was set at $60,000, identified misstatements were $45,000 and likely misstatements were estimated to be $75,000. Which one of the following audit opinions should be recommended for this engagement?
a) Unmodified opinion b) Qualified or adverse opinion c) Adverse or disclaimer of opinion d) Disclaimer of opinion only
a) Select a sample of journal entries, match to a purchase and check to see if there is a corresponding purchase invoice for each.
b) Review the cash receipts journal subsequent to year end for unusual amounts and look for the date on the related invoice.
c) Select a sample of journal entries, match to a purchase and verify that there is a receiving document.
d) Review the cash disbursements journal subsequent to year end for large disbursements and look for the date on the related invoice.
2. Materiality for an audit was set at $60,000, identified misstatements were $45,000 and likely misstatements were estimated to be $75,000. Which one of the following audit opinions should be recommended for this engagement?
a) Unmodified opinion b) Qualified or adverse opinion c) Adverse or disclaimer of opinion d) Disclaimer of opinion only
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