Choose an alternative which is not the external source of audit evidence. a. Confirmation from suppliers regarding the amount payable to them. b. Information from the Quality control department about quality control procedure adopted by the company c. Confirmation from Banker regarding the bank balance as per Pass Book d. Confirmation from customers regarding the amount receivables from them.

Q: Audit documentation often includes a client-prepared, aged trial balance of accounts receivable as…

A: Auditing:   In auditing, auditors verify the correctness and fair presentation of financial…

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: 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: .   c.   completeness of receivables.   d.  collectibility of the invoices.

A: The four qualities of a confirmation are as follows: Receipt. Responses can be written or spoken.…

Q: In order to make sure that loans are properly classified, the auditor would:   a. Examine due…

A: Audit is an independent examination of the financial staemetnts of an entity to present a true and a…

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: Which of the following control activities would best protect against the preparation ofimproper or…

A: Cash Budget: This budget gives an estimation of all the cash inflows and outflows of a business for…

Q: Which of the following fraudulent activities most likely could be perpetrated due to the lack of…

A: The auditor Is responsible for forming an opinion on the financial statement and the main reason for…

Q: Evidence comes in various types and has different degrees of reliability. Below are some pairs of…

A: The auditors are professional who possesses accounting, auditing, and taxation expertise. The…

Q: Which of the following is an example of an input control in the expenditure cycle? a. Physical…

A: The expenditure cycle begins when a need for goods or services is identified and ends when the…

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: When preparing a bank reconciliation, if the adjusted book balance and the adjusted bank balance are…

A: Equal amount of Adjusted book balance and the adjusted bank balance doesn't tell the cash is used…

Q: When an audit team does not receive a response on a positive accounts receivable confirmation,…

A: Audit: Audit is the process of verification of the compliance of the financial statements. It…

Q: When auditing the cash account, the auditor traces the cash receipts, which are recorded on the cash…

A: Auditing refers to the process of physically evaluating and inspecting all the financial information…

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: Which control activity is the entity implementing when credit and debt memorandums are prenumbered…

A: Control activities helps in assuring that necessary actions are taken to address risks to the…

Q: An auditor wishes to perform tests of controls on a client's cash disbursements procedures. If the…

A: a. observation and inquiry.In auditing, when control activities leave no audit trail of documentary…

Q: Which of the following statements about reconciling items is true? A Debit memoranda should be…

A: Bank reconciliation statement, which summarizes the differences between the adjusted bank balance…

Q: - 24. Auditors may use positive or negative forms or confirmation requests for accounts receivable.…

A: Introduction:- An auditor is a person or an organization that a corporation hires to conduct an…

Q: Indicate whether each of the following audit procedures is a testof controls, a substantive test, or…

A:

Q: Counting cash and verifying bank reconciliation are basic substantive procedures and are not…

A: Counting cash and verifying bank reconciliation are basic substantive procedures andsame ia required…

Q: Describe the Sarbanes Oxley Act and its impact on internal controls and financial reporting?…

A: Answer:-  Internal control meaning:- Internal control is a procedure implemented by a company's…

Q: Which of the following audit procedures is aimed most directly at testing the completeness assertion…

A: For acco payable auditor should  perform  appropriate  audit procedure  for testing  completeness…

Q: in testing controls over cash disbursements, an auditor most likely would determine that the person…

A: In testing controls over cash disbursements, an auditor would most likely look for evidence that 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: 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: Which of the following evidence provides the least assurance of reliability? A. Accounts receivable…

A: Audit evidences can be collected from internal and external sources. Internal evidences are based on…

Q: To gather audit evidence related to accounts receivable, the client should mail the confirmation…

A: Auditor: An auditor is a person or a group of people who is responsible for conducting an audit of…

Q: Hayden Corporation uses an enterprise resource planning (ERP) system. In their audit of receivables…

A: a. Two data analytic applications that might be used to audit the existence of receivables and…

Q: would help an auditor determine whether accounts payable have been misstated?     Examining…

A: Accounts payable (AP) is the sum owed to creditors and suppliers by a corporation (also referred to…

Q: Peng LLP is auditing the accounts receivable balance of a client. The senior in charge wants to…

A: Balance sheet assertions are the claims made by management related to the financial statements and…

Q: Required: Which internal control(s) would you recommend to prevent the following situations from…

A: Answer:- Internal control meaning:- Internal control encompasses the policies, procedures, and…

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: document that the auditor would test would mostly likely be the? A. Supplier Invoice B. Purchase…

A: To  verify whether all goods received by the company have been recorded appropriately, the source…

Fraud

Fraud in accounting is the planned manipulation of financial documents to make a false appearance of corporate financial health. Moreover, it includes an employee, accountant, or the company itself misleading investors and shareholders.