Please answer all the questions, thank you.

1. Which type of accounts receivable confirmation would normally be considered More Reliable:
   1. Negative
   2. Notable
   3. Positive
   4. Possible
2. Checking extensions of sales quantity and unit prices [multiplications] on sales invoices is what type of evidence?
   1. Analytical review
   2. Confirmation
   3. Inspection of documents
   4. Recalculation
   5. None of the above
3. Auditors sometimes use ratios as audit evidence. For example, an unexplained INCREASE in the ratio of gross profit to sales may suggest which of the following possibilities?
   1. Fictitious purchases
   2. Fictitious sales.
   3. Selling expense recorded as general expense.
   4. Unrecorded Sales.

4. 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

Total $ 100,000

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4. 1. Type of evidence Scanning; Accounts receivable to be reported on balance Sheet $130,000.
   2. Type of evidence Scanning; Accounts receivable to be reported on balance Sheet $100,000.
   3. Type of evidence Analytical Review; Accounts receivable to be reported on balance Sheet $130,000.
   4. Type of evidence Analytical Review; Accounts receivable to be reported on balance Sheet $100,000.
5. Consider the following statements:

1. A transaction (audit) trail includes the documents and records that allow an auditor to trace a transaction from its origination through to its final disposition, or vice versa.
2. A Control Problem exists when the design or operation of a control does not allow management or employees, in

the normal course of performing their assigned functions, to prevent or detect and correct, misstatements on a timely basis.

1. I is true; II is true
2. I is true; II is false
3. I is false; II is true
4. I is false; II is false