Question 1 28 Points Account Name Cycle Account Name Cycle Accounts Receivable Sales Revenue Accrued Income Tax Salaries Payable Advertising Expense Retained Earnings Bad Debt Expense Prepaid Expenses Buildings Notes Payable Cost of goods sold Dividends Dividends Payable Allowance for Doubtful Accounts Income Tax Accumulated Depreciation Land Accrued Payroll Tax Raw Materials Accrued Interest Required 1. Listed below are several accounts listed from a company's trial balance. Next to each account put the letter corresponding to the transaction cycle used to audit the account. (1 point per cell) A = Acquisition and payment cycle C = Capital acquisition and repayment cycle I= Inventory and warehousing cycle P= Payroll and personnel cycle S= Sales and collection cycle 2. Choose three accounts from the table and explain why they are on the same cycle? (8 points) Question 2 72 Points Please choose the appropriate "General Audit Objectives for given the assertions and provide an example for specific audit objectives for Payroll Transactions and Accounts Receivable. TERD is for "Transaction and Events and Related Disclosures" and ABRD for "Account Balances and Related Disclosures." If there are multiple audit objective for an assertion, all must be mentioned with general and specific audit objectives. General Audit # Assertion Specific Audit Objective Objectives 1 TERD - Classification 2 ABRD - Rights & Obligations 3 ABRD - Completeness 4 TERD - Accuracy 5 TERD-Cutoff 6 ABRD - Accuracy, Valuation, and Allocation 7 ABRD- Classification 8 TERD - Completeness 9 ABRD - Existence 10 TERD-Occurence