Audit and assurance 12) Which of the following audit procedures should be performed to cover existence assertion for receivables balances? A. Inspect the goods received note to determine when the goods were received B. Inspect the purchase order to confirm it is dated before the year end C. Review the post year-end cashbook for evidence of payment of the invoice D. Send a confirmation request to Lillo Co to confirm the outstanding balance 13) Which of the following audit procedure/(s) is/(are) not relevant to confirm the balance owing to Carnaval Co? Page 7 of 7 (1) Review post year-end credit notes for evidence of acceptance of return (2) Inspect pre-year-end goods returned note in respect of the items sent back to the supplier (3) Inspect post year-end cash book for evidence that the amount has been settled A. 1 only B. C. D. 3 only 1 and 3 only 1 and 2 only 14) The audit manager has asked you to review the results the whole population testing. The testing results indicate that there is a $45,000 error in audited population which is due to invoices not being recorded in the correct period as a result of weak controls and a one-off error of $25,000 which was made by a temporary clerk. What would be an appropriate course of action on the basis of these results? A. The error is immaterial and therefore no further work is required B. The effect of the control error should be projected across the whole population C. Happy Co should be asked to adjust the payables figure by $45,000 D. A different sample should be selected as these results are not reflective of the population 15) To help improve audit efficiency, Wilko & Co is considering introducing the use of computer assisted audit techniques (CAATS) for some audits. You have been asked to consider how CAATS could be used during the audit of Happy Co. Which of the following is not an example of using test data for trade payables testing? A. Selecting a sample of supplier balances for testing using monetary unit sampling B. Recalculating the ageing of trade payables to identify balances which may be in dispute C. All of above D. None of above

Camaval co? to tilo Co to confirm the outstandine bulance (2) Inspect pre-vear-end godifs returned note in respect of the itenis sent back of (3) Inspect post year-end cash book for ehdence that thespect of the itens sent back to the whpplier. A. 1 only B, 1 and 3 only C. 1 and 2 anly D. 3 only 14) The audit manager has asked you to review the results the whole pogulation testing: The testing results indicate that there is a 545,000 error in audited population which is due to invoices not being recorded in the correct period as a result of weak controls and a one -off error of 525,000 which was made by a temporary clerk. What would be an appropriate course of action on the basis of these results? A. The error is immaterial and therefore no further work is required 8. The effect of the control error should be projected across the whole population C. Happy Co should be asthed to adfuast the payables figure by 545,000 D. A different sample should be selected as these results are not rotlective of the population 15) To help improve audit efficiency, Wilko &Co is considering introducing the use of computer assisted audit techniques (CAATs) for some audits. You have been asked to consider how CAATs could be used during the audit of Happy Co. Which of the following is not an example of using test data for trade payables testing? A. Selecting a sample of supplier balances for testing using monetary unit sampling B. Recalculating the ageing of trade payables to identify balances which may be in dispute C. Allof above 2. Nonte of above