An auditor noted that client sales increased 10 percent for the year. At the same time, Cost of Goods Sold as a percentage of sales had decreased from 45 percent to 40 percent and year-end accounts receivable had increased by 8 percent. Based on this information, the auditor is most likely concerned abouta. Unrecorded costs.b. Improper credit approvals.c. Improper sales cutoff.d. Fictitious sales.

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A: When a receivable is no longer recoverable because a customer is unable to fulfil their…

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A: Given case is: A client has a separate sales group for its largest “preferred” customers, a select…

Q: An auditor noted that client sales increased ten percent for the year. At the same time cost of…

A: Client’s sales increased by 10% and cost of goods sold decreased by 5% (45-40)%. This is most likely…

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Q: An auditor desired to test credit approval on 10,000 sales invoices processed during the year. The…

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Q: Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has…

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Q: Providing for doubtful accounts At the end of the current year, the accounts receivable account has…

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Q: The Bizayeva CPA firm is auditing Hagopian, Inc. The company is a manufacturer. It manufactures…

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Q: The following data are from the company's records for the year ended December 31: Accounts…

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A: Following is the answer to the given question

Q: Which of the following data analysis procedures could have been used to detect this fraud?

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Q: 4. During the current year, DDD Company reported beginning allowance for doubtful accounts 150,000,…

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Q: Call Systems Company, a telephone service and supply company, has just completed its fourth year of…

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Q: At the end of year there was an imbalance in suspense account with a credit balance of €7C The…

A: Suspense Account is the temporary account created to correct errors and omissions.

Q: What audit assertions and internal controls deal with the following and how are the assertions and…

A: Assertions: These are the claims made by the management regarding certain financial information and…

Q: Alderwood Company has provided the following information prior to any year-end bad debt adjustment:…

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Q: XYZ Company prepared quarterly interim financial statements and used the percentage credit sales…

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Q: A client operates two plants.  In Plant A, throughout the entire cutoff test window, all sales have…

A: A client operates two plants.  In Plant A, throughout the entire cutoff test window, all sales have…

Q: Imagine that you are the financial analyst for XYZ Company. The organization is trying to determine…

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Q: A scrap metal dealer claims that tye mean of its cash sales in no more than $80, although an…

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Q: The company uses two aging categories to estimate uncollectible accounts. Accounts less than 60 days…

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Q: 4. Tooele Company's controller estimated bad debt expense using the percentage of accounts…

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Q: 208.Lily, an auditor for a major retail company, suspects that inventory fraud is occurring at three…

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Q: If accounts receivable turnover (credit sales/receivables) was 71 times last year compared to only…

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Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.