AUDITING & ASSURANCE SERVICES CONNECT AC
10th Edition
ISBN: 9781259292057
Author: MESSIER
Publisher: MCG
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Question
Chapter 10, Problem 10.21MCQ
To determine
Concept Introduction:
External confirmation is kind of audit evidence. This is obtained by the auditors from third party to confirm the balances or transactions. An external confirmation can be either positive or negative confirmation.
To choose: the case when a negative conformation is useful.
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When transactions are entered in wrong accounts, the classification
assertion is violated. *
True
False
Which of the following evidence provides the least assurance of reliability?
A. Accounts receivable
B. Sales invoice
C. Vendor invoice
D. Bank statements
What type of internal control is matching supporting documents before paying an invoice?
Chapter 10 Solutions
AUDITING & ASSURANCE SERVICES CONNECT AC
Ch. 10 - Prob. 10.1RQCh. 10 - Prob. 10.2RQCh. 10 - Prob. 10.3RQCh. 10 - Prob. 10.4RQCh. 10 - Prob. 10.5RQCh. 10 - Prob. 10.6RQCh. 10 - Prob. 10.7RQCh. 10 - Prob. 10.8RQCh. 10 - Prob. 10.9RQCh. 10 - Prob. 10.10RQ
Ch. 10 - Prob. 10.11RQCh. 10 - Prob. 10.12MCQCh. 10 - Prob. 10.13MCQCh. 10 - Prob. 10.14MCQCh. 10 - Prob. 10.15MCQCh. 10 - Prob. 10.16MCQCh. 10 - Prob. 10.17MCQCh. 10 - Prob. 10.18MCQCh. 10 - Prob. 10.19MCQCh. 10 - Prob. 10.20MCQCh. 10 - Prob. 10.21MCQCh. 10 - Prob. 10.22MCQCh. 10 - Prob. 10.23MCQCh. 10 - Prob. 10.24PCh. 10 - Prob. 10.25PCh. 10 - Prob. 10.26PCh. 10 - Prob. 10.27PCh. 10 - Prob. 10.28PCh. 10 - Prob. 10.29PCh. 10 - Prob. 10.30P
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- Transaction controls are designed to ensure that transactions are properly valued. True Falsearrow_forwardGenerally, test of details of transactions is used when account balances are affected by large volumes of relatively immaterial transactions. TRUE OR FALSE? WHY?arrow_forwardHow to ensure that overstatement as well as misstatements of account balances due to redundancy and out-of-date of information flows are identified and terminated?arrow_forward
- Which of the following control procedures mitigates the threat of duplicate payments? Select one: a. When an invoice is paid, the invoice and the entire voucher package should be canceled (for example marked “paid”) in a way that it cannot be submitted again. b. When evaluated receipt settlement (invoice-less system) is used, receiving reports need not be marked as paid as no invoices are generated. c. Photocopied invoices can be paid. d. Invoices should be approved for payment only when accompanied by a valid purchase order.arrow_forwardMasterarrow_forwardThe purpose of testing the quality of debits and credits is to find errors recorded in the amounts. True Falsearrow_forward
- What is the purpose of the following control procedures (i.e., what threats is it designed to mitigate)? c. Direct deposit of paychecks.arrow_forwardWhich of the following circumstances might indicate that management is manipulating the allowance for doubtful accounts?arrow_forwardwhat possible internal control weaknesses occured that resulted to unintentional duplicate payment of bills?arrow_forward
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