What is the missing transaction cycle? (2 marks)

1. Revenue and collections

2. Acquisitions and payments

3. Human resources and payroll

4. Inventory and distribution

Question 34 options:

Financial Reporting and Assessment

Opportunities and Rationalizations

Computer Assisted Audit Techniques

Capital Acquisitions and Repayments

2.ABC Company manufactures and sells laptops to retailers (i.e. Best Buy). Every sale must be recorded on a numerically sequenced shipping advice (bill of lading), which initiates the sales invoice to the retailer. Every duplicate sales invoice (the seller's copy) is also numerically sequenced and must have the "bill of lading" attached to it, as proof of the sale and shipment of the product to the retailer.

During the testing of the transaction-related audit objectives;

If the auditor is testing for any break in the sequence (missing numbers) in either the invoices or shipping advice, which transaction-related audit objective is being tested?

Question 32 options:

Completeness

Occurrence

Cutoff

Existence

3.Indicate whether each of the following procedures are a test of controls (TC), analytical procedure (AP) or a test of details of balances (TDB). Select the correct sequence from a to d.

a. _____ Examine vendor's invoices to verify the ending balance in accounts payable.

b. _____ Examine the treasurer's initials on monthly bank reconciliations as an indication of whether they have been reviewed.

c. _____ Multiply the commission rate by total sales, and compare the result with commission expense.

d. _____ Confirm accounts receivable balances directly with customers.

Question 31 options:

TC, TDB, AP, TDB

AP, TDB, TC, TC

TDB, TC, AP, TDB

TC, TC, AP, TDB