10. An auditor uses analytical procedures, rather than a detail test, in testing interest expense. This is referred to as a: a. Rationalization test. b. Reasonableness test. c. Realizable test. d. Redundant test.

12. Checking extensions of sales quantity and unit prices [multiplications] on sales invoices is what type of evidence? a. Analytical review b. Confirmation c. Inspection of documents d. Recalculation e. None of the above

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

Detail Support

Customer Balance

A $70,000

B 40,000

C (30,000)

D 20,000

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Total $ 100,000

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a. Type of evidence Scanning; Accounts receivable to be reported on balance Sheet $130,000. b. Type of evidence Scanning; Accounts receivable to be reported on balance Sheet $100,000.

c. Type of evidence Analytical Review; Accounts receivable to be reported on balance Sheet $130,000. d. Type of evidence Analytical Review; Accounts receivable to be reported on balance Sheet $100,000.

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