Working papers document the audit evidence collected by the auditors during the financial statement audit. The lead schedule for accounts payable will appear at the beginning of the accounts payable section of the audit file. Which of the following would be included on the lead schedule? (Several choices may be correct.) ☑Pre-adjusted current year's balance and prior year's balance Details of transactions tested for payables ☐ Conclusion reached on the overall opinion of the balance in accounts payable ✓ Agreement of current year's balance to payables balance on trial balance ✓ Difference between pre-adjusted balance and prior year balance ☐ Documentation showing the vouching of specific accounts payable balances

Working papers document the audit evidence collected by the auditors during the financial statement audit. The lead schedule for accounts payable will appear at the beginning of the accounts payable section of the audit file. Which of the following would be included on the lead schedule? (Several choices may be correct.) ☑Pre-adjusted current year's balance and prior year's balance Details of transactions tested for payables ☐ Conclusion reached on the overall opinion of the balance in accounts payable ✓ Agreement of current year's balance to payables balance on trial balance ✓ Difference between pre-adjusted balance and prior year balance ☐ Documentation showing the vouching of specific accounts payable balances

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: The subsequent period in an audit is the time extending from the balance sheet date to the date of…

Q: S1: Analytical review procedures is required as an evidence-gathering substantive test procedure,…

A: Answer: S1: Analytical review procedures is required as an evidence-gathering substantive test…

Q: When comparative financial statements are presented but the predecessor auditor's report is not…

A: There are certain duty and responsibility of auditor that is sufficient and appropriate audit…

Q: Auditors make materiality judgments during the planning/risk assessment phase of the audit to be…

A: Introduction: An auditor verifies the authenticity of commercial transactions that have been…

Q: An auditor simply compares a current year balance with the prior year balance in order to help…

A: To identify trends, analysing the data of just one year and compare it with current year will not be…

Q: List three relevant facts about Apollo Shoes that you think might have an impact on the financial…

A: Step 1: Identify High Inventory LevelsHigh inventory levels at year-end could lead to several audit…

Q: All answer's

A: Definition of Compilation Engagement: A compilation engagement is a type of service provided by…

Q: 6) Cutoff tests designed to detect purchases made before the end of the year that have been recorded…

A: 6) Correct option is 'completeness'

Q: all statements are true B. all statements are false C. S1 and S2 are true D. S1 and S3 are true

A: Correct option : B

Q: Which of the following would be an example of a reasonable assurance engagement?

A: The audit is done in order to review the financial statement and finds the errors and misstatement…

Q: Briefly explain four distinct specific audit procedures excluding discussion that should be…

A: Answer

Q: Suppose an auditor wants to perform a substantive analytical procedure to provide audit evidence to…

A: Interest expense can be referred to as the amount that is paid or payable on the amount borrowed…

Q: Think about the accounting courses you have taken to date. Assets, Liabilities, Stockholders Equity…

A: When appraising a company or assessing an investment opportunity, fundamental analysts usually start…

Q: The auditors have determined that each of the following objectives will be a part of the audit of…

A: The audit of different items contained in the financial statements through appropriate audit…

Q: The practice of auditing firms to spread work throughout the year by carrying out as many auditing…

A: Audit is the process by which the auditors verify the financial statements of the company and makes…

Q: Describe the audit procedures you would use to learn about each of the situations listed. Begin…

A: Audit procedures are procedures adopted by auditors to obtain sufficient and appropriate audit…

Q: The audit reporting requirements for comparatives discuss the following I. Prior period financial…

A: The audit reporting requirements for comparatives discuss the following: 1. If the prior financial…

Q: An auditor completes a trend analysis to compare net income from the past three years, looking for…

A: The purpose of an audit is to verify whether the financial statements are free from material…

Q: Identify major activities performed by auditors in completing the substantive procedures following…

A: Auditors are required to perform several substantive procedures following the date of financial…

Question

Working papers document the audit evidence collected by the auditors during the financial statement audit. The lead schedule for
accounts payable will appear at the beginning of the accounts payable section of the audit file.
Which of the following would be included on the lead schedule? (Several choices may be correct.)
✔ Pre-adjusted current year's balance and prior year's balance
☐ Details of transactions tested for payables
☐ Conclusion reached on the overall opinion of the balance in accounts payable
✓ Agreement of current year's balance to payables balance on trial balance
✓ Difference between pre-adjusted balance and prior year balance
☐ Documentation showing the vouching of specific accounts payable balances

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Explain lead schedule:

VIEW

Step 2: Explain the correct answer :

VIEW

Step 3: Explain why other options are incorrect:

VIEW

Solution

VIEW

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

An auditor issues a report dated 2/12/Year 2 on financial statements for the year ended 12/31/Year 1. Which best describes the auditor's responsibility for an event occurring on 2/1/Year 2 and an event occurring on 3/1/Year 27 A. The auditor has an active responsibility to investigate both events. B. The auditor has an active responsibility to investigate the 2/1/Year 2 event, but no responsibility concerning the 3/1/Year 2 event. C. The auditor has an active responsibility to investigate the 2/1/Year 2 event, and must also consider the effect of the 3/1/Year 2 event if it comes to his/her attention. D. The auditor has no responsibility for either event, since both occur after the date of the financial statements.
You are the audit team assign to audit the unaudited set of financial statements for XYZ Company Ltd. for year ended 30 June 2002. Prepare written report to highlight the audit procedures to be used to substantiate/confirm the amounts reported for following items on the financial statements provided: Revenue and accounts receivable Purchases and accounts payable
In performing an audit, you encounter an adjusting journal entry recorded at year-end that contains a debit to rental revenue and a credit to deferred rental revenue. The purpose of this journal entry is to record
Determine the following as a result of your audit: subquestion a. How much is the correct amount of interest expense that should be reported in its Statement of Comprehensive Income for the period ending December 31, 2023? subquestion b. As an audit manager, you review the working papers of your audit staff and senior auditor and summarized the proposed adjusting entries (PAJE’s): Your proposed adjusting journal entry will include a credit to premium on note payable of? please show solution.
Task 1:The senior accountant has identified three misstatements that have been carried forward onto the summary of proposed audit adjustments. Determine the impact of the identified misstatements on the financial statement ratios noted below. For each of the identified misstatements below, indicate the impact on the financial ratio identified. In columns D and E, select the impact, if any, that the misstatement has on the financial ratio from the option list. Selections used once, more than once, or are not at all. Consider each misstatement independently. Choices for Columns D and E: decrease increase no impact A B C D E 1 Account Debit Credit Impact on current ratio Impact on profit margin 2 Payroll expense 72,000 3 Accrued payroll 72,000 4 5 Depreciation expense 125,000 6 Accumulated depreciation 125,000 7 8 Prepaid insurance 15,000…
The audit report date on a standard unmodified opinion audit report indicates A. the last day of the fiscal period. B. the last day of the auditor's responsibility for the review of significant events that occurred after the date of the financial statements. O C. the date on which the financial statements were filed with the Securities and Exchange Commission. D. the last date on which users may institute a lawsuit against either the client or the auditor.
S1: Most of the audit procedures in examining the financial statement components are performed by the junior or associate auditors. S2: At the completion stage, the reviewer of working papers should check if the approved adjusting journal entries have been properly posted and the amounts in the working trial balance agree with the amounts shown in the lead schedules. a. BOTH STATEMENTS ARE TRUE b. BOTH STATEMENTS ARE FALSE c. ONLY S1 IS TRUE d. ONLY S2 IS TRUE
basis. An auditor shall prepare audit documentation on a O a. Annually O b. Regularly Oc. Quarterly O d. Timely
1-From the options given below which of the document is included by an auditor in the audit documentation? a. Oral explanation by auditor b. Complete notes c. Superseded draft of financial statements d. Previous copies of documents rectified for mistakes
While reviewing a work paper on “pre-paid expenses” an auditor noticed that the schedule prepared by the audit team gave the opening balance, debits to the account, credits to the account and closing balance. Is the same sufficient documentation?
For a subsequent event condition existing on or before the balance sheet date, the auditor should Group of answer choices Consider a note disclosure Report to audit committee Alert shareholders directly Adjust financial statement amounts
The auditor has a responsibility to design audit procedures to obtain sufficient and appropriate evidence. Apply two types of audit procedures that the auditor might use to support each of the following. i. Physical attendance at stock take ii. Valuation of accounts receivable iii. Balance in Bank iv. Authorised and paid-up share capital v. Accounts payable