Audit documentation often includes a client prepared aged trial balance of accounts receivable as of the audit balance sheet date. The audit team uses the aging primarily to:     Evaluate internal control credit sales     Test accuracy of recorded charge sales     Estimate credit losses and allowance for doubtful accounts     Verify the existence of the recorded receivables.

Q: The main objective of an audit is а. Maintaining books of accounts properly b. Presentation of true…

A: Audit is the process of checking, verifying and examining books of account and financial information…

Q: Choose an alternative which is not the external source of audit evidence. a. Confirmation from…

A: External Evidence are audit evidences that originate outside the client’s organization. These…

Q: MENT 2: The process of analyzing subsidiary ledger acounts of accounts receivable to ine those…

A: Answer: Concept: Audit is performed with proper verification and compliance tests.

Q: An auditor's techniques for examining the balance sheet's accounts receivable account are most…

A: Answer: Concept Balance sheet are the financials of the company. They are expected to be true and…

Q: Imagine that you were auditing accounts receivable balances to confirm sales and found significant…

A: The objective of this question is to find an alternative approach to confirm sales revenue when…

Q: Which of the following audit procedures is a dual-purpose test, which tests the effectiveness of…

A: A dual-purpose test is an audit method that serves as a control and substantive test at the same…

Q: We discussed the difference between a) tracing a sample of transactions from the source documents to…

A: Source documents refer to the original records or materials that provide evidence of a business…

Q: Completeness

A: Correct answer :- B Completeness

Q: MOST likely to be performed before the balance sheet date? a. Determine the date of the Letter of…

A: Auditing is independent examination of financial statements to express an opinion on the financial…

Q: In order to determine whether accounts payable are understated, auditors wish to obtain a sample of…

A: The objective of the question is to identify the most appropriate sampling method for auditors to…

Q: An Internal control questionnaire indicates that an approved receiving report is required to…

A: An internal control questionnaire is a document that an auditor delivers to a company's staff prior…

Q: c. Calculate ered in tes с. Miss

A: UML stands for Upper Misstatement Limit which refers to the maximum dollar overstatement that could…

Q: Items a through frepresent the items that an auditor ordinarily would find on a client-prepared bank…

A: Bank Reconciliation Statement is a statement document that reconciles the difference in the cash…

Q: Match each example audit procedure with its correct general audit objective related to accounts…

A: A) Existence of assets: This refers to the verification of whether assets recorded in the financial…

Q: Testing the information on the aged trial balance for detail tie-in is a necessary audit procedure,…

A: Trial balance is the summary of all general ledger accounts being used in business. Audit is the…

Q: In auditing the client’s receivables, the auditor decided to select entries in the sales journal and…

A: Assertion of Existence: Assets or liabilities of the company exist at a given date, and recorded…

Q: then, discuss the statement content, stating examples of substantive analytical procedures which…

A:

Q: The overall objective in the audit of the acquisition and payment cycle is:  Group of answer…

A: Introduction:- An audit is an "independent examination of financial statements of an organization.…

Q: Describe TWO (2) substantive testing procedures an auditor could employ to verify each of the…

A: i. Revenue and Accounts Receivable: 1. Analytical Review: The auditor would examine the changes in…

Q: Assume that your audit partner asks you to design detailed substantive testing programs for accounts…

A: Considerable testing is a review technique that looks at the fiscal reports and supporting…

Q: Assertion: Existence of accounts receivable Which of the following represents the substantive…

A: Audit procedureMethods and techniques used by the auditor to gather the appropriate evidence so that…

Q: The most probable audit processes to verify receivables written off as uncollectible include Explain…

A: Procedure for auditing: Audit procedures are the processes, strategies, and methods used by auditors…

Q: A typical substantive procedure for receivable balance and sales transactions may include…

A: Specifically disclosed in noes to accounts also , in income statements

Q: Specific balance-related audit objective Accounts receivable are appropriately aggregated and…

A: The importance of assertions in auditing cannot be overstated. In the auditing process, assertions…

Q: Which of the following statements is true regarding assertions in the revenue cycle?     All five…

A: under normal audit risk conditions the occurrence assertion would be more relevant than the…

Q: 3. An auditor should perform alternative procedures to substantiate the existence of accounts…

A: Answer:-  Account receivable meaning:- The amount owned to a business for goods or services that…

Q: Which of the following statements is associated with analytical procedure test? a. It helps to…

A: Analytical procedures involve comparisons of recorded amounts, or ratios developed from recorded…

Q: emphasis of the auditor in the following audit procedures?

A: Option 1 is wrong because by confirming the total amount of accounts payable subsidiary record with…

Q: Course: Auditing  You are the audit partner of ‘Power Auditors’ and you are auditing your client…

A: The opinion which is formed and communicated by the auditor to the organization after assessing the…

Q: Why is it important to emphasize the existence assertion when auditing accounts receivable?

A:

Q: The following are specific balance-related audit objectives applied to the audit of accounts…

A: The first specific related objective deals with the amounts which must not be involved in the…

Q: Which of the following substantive procedures would most likely help an auditor determine whether…

A: Substantive procedures are performed to detect the material misstatement or fraud at the assertion…

Q: b. Existence and completeness objectives. c. Existence, realisable-value and accuracy o

A: The right answer is c. Existence, realizable-value and accuracy objectives.

Q: onfirmation of accounts receivable is a presumptively mandatory audit procedure. In performing this…

A: Confirmation of accounts receivable is an audit procedure that involves obtaining external…

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.