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

Q: Confirmations of bank accounts may help the auditor to determine if material amounts of accounts…

A: An auditor is a professional, frequently an independent third party, who examines and verifies…

Q: Expalin wether the tools used in the financial statement audit are employed in a fraud examination.

A: The tools used in a financial statement audit and a fraud examination share some similarities but…

Q: What are some of the internal controls that an accountant should put into place to determine if…

A: Accounts payable controls are designed to help mitigate loss risk in the accounts payable function.…

Q: How can external auditors attempt to uncover motivations for committing fraud?

A: Fraud:   It is an intentional misappropriation of the assets or the financial records of an…

Q: Which of the following assertions is least likely tested by bank balance confirmation? * Existence…

A: Assertions: Management's claims that the financial statements provided are correct are referred to…

Q: Internal control is concerned with the reliability of financial information. True or False

A: Internal control is a procedure which will ensure completion of objectives along with safguarding…

Q: Which of the following is not a purpose of internal controls?     Guarantee profits     Protect…

A: Internal control can be defined as a system to follow the rules and mechanism in the organisation so…

Q: Confirmation of individual accounts receivable balances directly with debtors will, of itself,…

A: The auditor would normally confirm the balances on balance sheet by using external confirmation…

Q: An auditor tested the client's internal controls over granting customers credit and establishing…

A: Auditing means the independent checking of company operation by outsider. Auditor is a qualified and…

Q: Indicate which statements are true and which are false. Separation of recordkeeping for assets from…

A: One of internal control policy to safeguard assets is segregation of duties which is separation of…

Q: Which of the following types of receivables would not deserve the special attention of the auditor?…

A: Audit is the process of checking and verifying the financial statements in business and to analyse…

Q: What are the key differences between a conventional audit and a fraud examination?  2. To what…

A: The key differences between a conventional audit and a fraud examination are as follows: Purpose:…

Q: Explain why auditors usually emphasize the detection of fraud inthe audit of cash receipts. Is this…

A: The auditor focuses on cash as it is the very high liquid asset of the company, hence there is a…

Q: Which analytical procedures are most important in verifying notes payable? Which types of…

A: It refers to the evaluation of financial information via identifying and analyzing of plausible…

Q: Which of the following circumstances might indicate that management is manipulating the allowance…

A: There are several circumstances that might indicate that management is manipulating the allowance…

Q: What is the ethical value of applying the Fraud Triangle to assess the risk of material…

A: Fraud Triangle:   A fraud triangle refers to a framework that is used in auditing to explain the…

Q: What are the most common revenue-recognition abuses identified by auditors?

A:

Q: What is the auditor's responsibility for detecting theft or fraud?

A: American Institute of Certified Public Accountants (AICPA): AICPA is the organization which supports…

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.