o determine whether sales transactions have been recorded in the proper accounting period, the auditor performs  cutoff tests. Which of the following best describes the overall approach used when performing  sales cutoff tests?      Ascertain that management has included in their representation letter a statement that transactions have been accounted for in the proper accounting period.     Examine cash receipts in the subsequent accounting period.     Confirm year-end transactions with regular customers.     Analyze sales transactions occurring within a few days before and after year-end.

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 is required to confirm accounts receivable if the accounts receivable balances are:…

A: Accounts receivable refers to the money due to the seller from buyers who had purchased on account…

Q: Send letters to a sample of accounts receivable customers to verify whether they have an outstanding…

A: Audit Objective: Existence and CompletenessSpecific Audit Objective: To verify the existence 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: Your client has requested that you assist them in setting up their accounting system and asks that…

A: Answer:- Accounting system:- An accounting system is a collection of accounting processes that have…

Q: For each procedure, indicate the primary audit objective being satisfied: Trace entries from cash…

A: The primary objective of an audit is to check and confirm that all financial information is…

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: Which of the following provides the highest-quality evidence regarding the Valuation of recorded…

A: Performing the Analytical procedures provides the highest-quality evidence regarding the Valuation…

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: An effective revenue security system will help you accomplish the following important tasks: a)…

A: Revenue security refers to the procedure by which a company may match the total amount of sales with…

Q: to the general ledger. Footed the cash book. CASH DISBURSEMENTS: E. Compared cancelled checks with…

A: Cash - Cash is defined in bookkeeping and financial accounting as current assets made up of money or…

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: paring the bank reconciliation. 2. Examine vendors’ invoices and other s

A: The auditors verify the fairness of financial statements by collecting audit evidence by following…

Q: On May 11, 2018, Doña Pura opens Pura Collection Services. On the transaction summary table below,…

A: The accounting equation represents that the asset is equal to the sum of liabilities and owners'…

Q: "In order to determine whether internal control operated effectively to minimize errors of failure…

A: Internal control is a procedure that is aimed to offer reasonable confidence that information is…

Q: The Accounts Receivable subsidiary ledger is updated (increased and decreased) by using which of the…

A: Accounts Receivables - Accounts Receivables are the amount unpaid by the customer for the service…

Q: Which of the following procedures would an auditor most likely perform in searching for unrecorded…

A: These liabilities arise from transactions or events that have taken place but have not been…

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: To determine whether accounts payable are complete, auditors perform a test to verify that all…

A: Audit Test: An audit test is a sample from all recorded transactions to test the accuracy of…

Q: You are part of the audit team that is auditing Hillsburg Hardware Co. and you have been assigned to…

A: A test of controls is an audit procedure to test the effectiveness of a control used by a client…

Q: Agree current year amounts on cash lead schedule to trial balance.         Agree prior year…

A: First, compare the current year amounts on the cash lead schedule to the trial balance. The cash…

Q: When performing tests of controls over cash sales, an auditor would use observation to test whether…

A: When performing tests of controls over cash sales, an auditor would use observation to test whether…

Q: Which of the following is an internal control measure regarding purchases made by a company during a…

A: Internal control measures are policies and procedures put in place by a company to ensure the…

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: Present your answers in the following structure: Type of procedure No. (i) (ii) Assertion tested

A: AUDIT PROCEDURES  An audit is a procedure in which the financial statements of a company or firm are…

Q: The following matters were noted in the audit of Tools N Things: a. An order was never billed…

A: Control Test of control FS assertion Pre-numbered shipping documents are accounted for to…

Computerized Accounting System

The Computerized Accounting System is generally a system of maintaining accounts using computers. In this method of accounting system, the accounting transactions are processed through the use of hardware and software to generate the reports such as journals, ledgers, trial balance, trading account, P/L accounts, balance and other reports.