25. Which of the following procedures would an auditor most likely perform for December year-end accounts receivable confirmation when the auditor did not receive replies to second requests?

a. Review the cash receipts journal for the two months prior to year-end.

b. Intensify the study of the internal control structure concerning the revenue cycle.

c. Inspect the documents associated with the recorded sales transaction, including the customers purchase order and the entitys shipping document and sales invoice.

Increase the assessed level of detection risk for the existence assertion.

27. To verify the year-end bank balance identified on a clients cash reconciliation, the auditor would most likely agree that bank balance to the

a. Cash lead schedule.

b. General ledger account balance.

c, Interbank transfer schedule.

d. Standard bank confirmation.

48. Which AICPA standard-setting body is responsible for issuing Statements on Standards for Attestation Engagements?

a. Professional Ethics Executive Committee.

b. Accounting and Review Services Committee.

c. Auditing Standards Board.

d. Attestation Standards Steering Committee.

50. Which of the following statements about service auditor reports associated with the clarified Statements on Standards for Attestation Engagements (SSAEs) is most accurate?

a. The service auditors type 1 or type 2 report on internal controls at the service organization may be helpful to the user auditor in obtaining an understanding of those controls that are relevant to the user organizations financial statements.

b. The user auditor must verify that the service auditor is independent of the various user entities associated with the service organization.

c. The user auditor is responsible for performing all the tests of control on the internal controls identified by the service auditors report on the operating effectiveness of a service organizations internal controls.

d. The Sarbanes-Oxley Act of 2002 prohibited service auditor reports and made the user auditor responsible for directly obtaining an understanding of the internal controls at the service organization that are relevant to the user organization.