ements ents ons Video The CPA is engaged to audit a client with a calendar year end The client took a complete inventory on December 31st and adjusted its inventory account and detailed perpetual inventory records to agree with the physical inventory The client considers a sale to take place in the period the goods are shipped. Which of the following is not a cutoff error but results in a timing difference? Recorded as Shipped Sale Recorded by Customer d a. 1/2 1/2 1/4 b. 1/2 12/31 1/4 Materials C 12/30 12/31 1/2 d. 12/30 1/2 12/31 cements ments Question 3 2.5 pts What is an auditor's evaluation of a statistical sample for attributes when a test of 50 documents results in three exceptions if the tolerable rate is 7%, the expected population exception rate is 1%, and the allowance for sampling risk is 2967 ions Video: Materials O Modify the assessed level of control risk because the tolerable rate plus the allowance for sampling risk exceeds the expected population exception rate O Modify the planned assessed level of control risk because the sample exception rate plus the allowance for sampling risk exceeds the tolerable rate O Accept the sample results as support for the planned assessed level of control risk because the tolerable rate minus the allowance for sampling risk equals the expected population exception rate. O Accept the sample results as support for the planned assessed level of control risk because the sample exception rate plus the allowance for sampling risk is less than the tolerable rate Which of the following cash transfers results in an overstatement of cash at December 31, 2019? Bank Transfer Schedule Disbursements Receipt Recorded in Paid by Recorded in Received Transfer books bank books by bank a. 12/29/19 12/31/19 12/31/19 12/31/19 b. 1/4/20 1/5/20 12/31/19 1/4/20 C. 12/31/19 1/5/20 12/30/19 1/4/20 d. 1/4/20 1/11/20 1/4/20 1/4/20 D Question 1 Ch 13-Defenses to... BUL3310 Ch13 Flas... Business Law 2, 2.5 pts If the auditor dates the audit report on financial statements for the year ended December 31, 2019, as of February 10, 2020, except for Note J, as to which the date is March 3, 2020. The auditor is taking responsibility for: O All subsequent events occurring through February 10, 2020 only. O All subsequent events through March 3, 2020. O All subsequent events occurring through February 10, 2020 and the specific event referred to in Note J through March 3, 2020. Only the specific subsequent event referred to in Note J through March 3, 2020. Tin Att 2 H Question 2 2.5 pts