Which audit procedure is most effective in testing credit sales for overstatement?(1) Trace a sample of postings from the sales journal to the sales account in thegeneral ledger.(2) Vouch a sample of recorded sales from the sales journal to shipping documents.(3) Prepare an aging of accounts receivable.(4) Trace a sample of initial sales orders to sales recorded in the sales journal.

Q: When verifying debits to the perpetual inventory records of a nonmanufacturing company, auditors…

A: Perpetual Inventory Records:   A process of accounting that constantly updates its records with…

Q: You are developing the policies and procedures in relation to credit sales. What processes would you…

A: Payments for credit sales are made several days or weeks after a product is delivered. In contrast…

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: Describe how the auditor documents the sales and despatch system for his audit file

A: The sale and dispatch system is the internal system of any entity for the distribution of the…

Q: Completeness

A: Correct answer :- B Completeness

Q: Explain the basic processes involved in documenting revenue transactions as a part of the audit on…

A: Revenue is the income a company earns from the sale of goods or services. It is the amount of money…

Q: Describe the FASB's rules or standard on revenue recognition.  Where do we find the FASB's revenue…

A: Accounting standards are developed by FASB (Financial Accounting Standard Board). These standards…

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: c. Calculate ered in tes с. Miss

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

Q: How many the specific audit tests for the Sales & Revenue Cycle?

A: Sales & Revenue Cycle: This cycle  is made up of  various classes of transactions with respect…

Q: You are working on the audit of Frozen Fresh Ltd and have just completed an evaluation of controls…

A: For prevention of fraud, theft, and manipulation of records, control over the internal…

Q: ient’s treasurer. d. A check, issued by the company and bearing the payee’s endorsement, that is…

A: Given: To explain the correct option among the given options as,

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: Which of the following audit procedures uses “a purchase transaction” as the sampling unit?   A.…

A: Audit Procedures for Purchase Transaction The proper audit procedures which are needed in the…

Q: An auditor looks at purchase orders to ensure the appropriate client personnel have approved the…

A: According to the question given, we need to select the correct option from the options given.Test of…

Q: State one test of control and one substantive test of transactions that the auditor can use to…

A: Test of Control: It means testing and analyzing the control used and set by an entity to check the…

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: Explain why you agree or disagree with the following statement:“In most audits, it is more important…

A: I agree with the given statement as in most audits, it is much important to test carefully the…

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

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

Q: For which of the following audit tests would an auditor most likely use attribute sampling?…

A: Audit tests: An audit test is a sample drawn from a larger population with the intention of testing…

Q: Describe the steps that auditors use to test controls over sales and collections. Please provide…

A: Auditors are professionals who are trained to evaluate and review financial records and activities…

Q: Which of the following types of evidence would an auditor most likely examine to determine whether…

A: The question is asking us to identify the type of evidence an auditor would most likely examine to…

Q: To allocate the preliminary estimate of materiality to the accounts, the auditor might consider A.…

A: in order to plan the nature timining and extent of the audit procedure that is needed to perform the…

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: The auditor is MOST likely to learn of retirements of equipment through which of the following? a.…

A: An equipment audit eliminates the possibility of a customer showing up for pick-up only to discover…

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: 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: 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: Select from the following the main object of an audit. a. Expression of expert opinion b. Detection…

A: Audit means checking and verifying the authenticity of financial statements by examining them. It…

Q: goal of this substantive audit procedure

A: Option b is wrong because for determining the proper recording of purchases, there is no need to…