- 24. Auditors may use positive or negative forms or confirmation requests for accounts receivable. An auditor most likely will use A. The positive form to cofirm all balances regardless of size. B. A combination of the two forms, with the positive form used for large balances and the negative form for the small balances. C. A combination of the two forms, with the positive form used for trade receivables and the negative form for other receivables. D. The positive form when the combined assessed level of inherent and control risk for assertions related to receivables is acceptably low and the negative form when it is unacceptably high.

- 24. Auditors may use positive or negative forms or confirmation requests for accounts receivable. An auditor most likely will use A. The positive form to cofirm all balances regardless of size. B. A combination of the two forms, with the positive form used for large balances and the negative form for the small balances. C. A combination of the two forms, with the positive form used for trade receivables and the negative form for other receivables. D. The positive form when the combined assessed level of inherent and control risk for assertions related to receivables is acceptably low and the negative form when it is unacceptably high.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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17. Please answer asap!!!
A common audit procedure to verify the existence assertion of cash account balances is: a. examining evidence over the authorization of cash disbursement b. examining evidence of the separation of duties between the receipts of cash payments and posting to the accounts receivable subsidiary records c. Standard Bank Confirmation form d. none of these
11) The data collected during the accounts payable process can be converted into several accounts payable reports. Below is a list of some of those reports. Which report summarize purchases by vendor over a specific period of time to look for unusual activity? A) Cash disbursements journal B) Purchases by vendor C) Accounts payable D) Vendor aging report.
Customer deposits (prepayments) are recorded - Select one: a. as debits to accounts receivable for the customer b. as negative sales invoices C. as credits to accounts receivable for the customer O d. when the customer makes a partial payment on account
In testing controls over cash disbursements, an auditor most likely would determine that the person who signs the check also: A. Approves the voucher for payment. C B. C. D. Stamps, perforates or otherwise cancels supporting documents. Returns the checks to accounts payable. Is denied access to the supporting documents.
4. Which of the following audit procedures is most appropriate to address the occurrence assertion for sales? a. Confirm receivables balances. b. Perform analytical procedures. c. Review collectability. d. Confirm cash deposits in banks.
Assess the following statement as true or false. Enter T for true or F for false. 1. 2. 3. 4. Bank reconciliation is one of documentation procedure control. A cash budget contributes to more effective internal control. of segregation of duties. 5. to apply. Allow only one check signer has access to cash recording is an example The assumption of inventory method (i.e. FIFO etc.) may not match the physical flow of goods. Technology has make the perpetual inventory more popular and easier
To minimize errors in the accounts payable function, which of the following procedures should be performed? approving the purchase requisition following up on open purchase orders double checking the math on the bank reconciliation matching the supplier’s invoice to the receiving report
Choose the one correct answer. Which of the following Test of Controls is done to examine whether purchase orders, receiving reports and vouchers are prenumbered and accounted for? *Select samples from creditors list and send creditors’ confirmation. Examine evidence of approval of unusual trade terms and discounts. Trace samples of goods received notes to the related suppliers’ invoices and entries in the purchase journal and in creditors’ ledger. Review bank statements for any unrecorded cheques payments.
After you have completed a bank reconciliation, there can be numerous un‐ reconciled bank statement debits. In your own words, explain the difference between a debit order and a stop order.
Stockton Company Adjusted Trial Balance December 31 Cash Accounts Receivable Prepaid Expenses Equipment Accumulated Depreciation Accounts Payable Notes Payable Bob Steely, Capital Bob Steely, Drawing Fees Earned Wages Expense Rent Expense Utilities Expense Depreciation Expense Miscellaneous Expense Totals Account Debit Credit No. Balances Balances 11 5,725 12 2,957 13 660 18 13,876 19 1,391 21 1,560 22 5,033 31 13,647 32 41 6,270 51 52 53 54 59 904 2,350 807 338 170 114 27,901 27,901
H6. Question 15 During an audit, you are selecting a sample of transactions from the vouchers payable register at the end of the period and tracing them to underlying documents. By doing this, you are gathering evidence primarily to support that: Incurred obligations were recorded in the correct period Recorded obligations were paid Recorded obligations occurred prior to year-end 1 pts Cash disbursements were recorded as incurred obligation Please show all step by step calculation