1. Which of the following tests of controls most likely will help assure an auditor that shipped are properly billed? a. Scan the sales journal for sequential and unusual entries b. Examine shipping documents for matching sales invoices. c. Compare the accounts receivable ledger to daily sales summaries d. Inspect unused sales invoices for consecutive prenumbering. 2. In testing the existence assertion for an asset, an auditor ordinarily works from the a. Financial statement to the potentially unrecorded items. b. Potentially unrecorded items to the financial statements c. Accounting records to the supporting evidence. d. Supporting evidence to the accounting records. 3. Under which of the following circumstances would the use of the blank form of confi of accounts receivable most likely be preferable to positive confirmation? a. The recipients are likely to sign the confirmations without devoting proper attenti them. b. Subsequent cash receipts are unusually difficult to verify. Analytical procedures indicate that few exceptions are expected c. d. The combined assessed level of inherent risk and control risk is low. When an auditor does not receive replies to positive requests for year-end accounts receivable confirmations, the auditor most likely would a. Inspect the allowance account to verify whether the accounts were subsequently w 4. off. b. Increase the assessed level of detection risk for the valuation and completeness assertions. c. Send the customer a second confirmation. d. Increase the assessed level of inherent risk for the revenue cycle An auditor selected items for test counts while observing a client's physical inventory. Th auditor then traced the test counts to the client's inventory listing. This obtained evidence concerning management's assertion of a. Rights and obligations. b. Completeness c. Existence or occurrence. d. Valuation. S. procedure most I Which of the following procedures is least likely to be performed before the balance sheet date? 6. Observation of inventory. Testing internal control over cash. a