QUESTION 16

1. Which of the following substantive procedures would be appropriate to test the accuracy of revenue:
2. A.Test the pricing and mathematical accuracy of sales invoices.
3. B.Compare the number and amount of credits issued with those of prior periods.
4. C.Perform an overall test of interest income on investments by multiplying the average amount invested by interest rate.
5. D.Obtain detailed analysis of selected revenue accounts and trace the details to the source data.

1 points

QUESTION 17

1. You have noted the following situation during the audit of SAR Limited. During the financial year the audit client introduced a new software program system which allows the firm to process online sales and deliveries more efficiently. This will have the following effect on the audit risk model:
2. A.Decrease in Control Risk and Increase in Detection Risk
3. B.Increase in Inherent Risk and Decrease in Control Risk
4. C.Increase in Inherent risk and Increase in Control risk
5. D.Decrease in Inherent Risk and Decrease in Detection Risk