Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

5.8Identifying types of audit evidenceLO 2 Required Identify the type of audit evidence being used in each situation described below: a. The auditor tests cash

5.8Identifying types of audit evidenceLO2

Required

Identify the type of audit evidence being used in each situation described below:

a. The auditor tests cash remittance advices to ensure that allowances and discounts are appropriate and that receipts are posted to the correct customer accounts in the right amounts. In addition, the auditor reviews the documents supporting unusual discounts and allowances.

b. The auditor examines vehicle insurance policies and checks insurance expense for the year. In addition, the auditor reviews the expense with respect to changes and ending balances in capital asset accounts.

c. The auditor observes the auditee taking a physical inventory count. In addition, a letter is received from a public storage facility stating the amounts of the auditee's inventory stored in it. The company uses a weighted average cost flow assumption, which is tested by the auditor's computer software program.

d. Using audit software, an auditor selects vendors' accounts payable with debit balances from the client's computer and compares these amounts and their calculation with cash disbursements and vendor credit memos.

Could you help me solve this problem?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Tools For Business Decision Making

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

7th Edition

1-119-57105-6, 978-1119571056

More Books

Students also viewed these Accounting questions

Question

What is the effect of word war second?

Answered: 1 week ago