AUDITING+ASSURANCE SERVICES (LL)
AUDITING+ASSURANCE SERVICES (LL)
11th Edition
ISBN: 9781266448119
Author: MESSIER
Publisher: MCG
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Concept explainers

Question
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Chapter 5, Problem 5.33P

a.

To determine

Concept introduction:Audit procedures are processes and techniques that auditors perform to obtain audit evidence.

To indicate: The category and the primary assertion being tested insending a written request to the client's customers requesting that they report the amount owed to the client.

a.

Expert Solution
Check Mark

Answer to Problem 5.33P

Account balances, Existence.

Explanation of Solution

The category and the primary assertion being tested in Sending a written request to the client's customers requesting that they report the amount owed to the client is account balances and existence respectively.

b.

To determine

Concept introduction: Audit procedures are processes and techniques that auditors perform to obtain audit evidence.

To indicate: The category and the primary assertion being tested in examining large sales invoices for a period of two days before and after year-end to determine if sales are recorded in the proper period.

b.

Expert Solution
Check Mark

Answer to Problem 5.33P

Transactions and events, Cutoff.

Explanation of Solution

The category and the primary assertion being tested in examining large sales invoices for a period of two days before and after year-end to determine if sales are recorded in the proper period are Transactions and events and cutoff respectively.

c.

To determine

Concept introduction: Audit procedures are processes and techniques that auditors perform to obtain audit evidence.

To indicate: The category and the primary assertion being tested in Agreeing the total of the accounts receivable subsidiary ledger to the accounts receivable general ledger account.

c.

Expert Solution
Check Mark

Answer to Problem 5.33P

Account balances, Completeness.

Explanation of Solution

The category and the primary assertion being tested in Agreeing the total of the accounts receivable subsidiary ledger to the accounts receivable general ledger account are account balances and completeness respectively.

d.

To determine

Concept introduction: Audit procedures are processes and techniques that auditors perform to obtain audit evidence.

To indicate: The category and the primary assertion being tested in discussing the adequacy of the allowance for doubtful accounts with the credit manager.

d.

Expert Solution
Check Mark

Answer to Problem 5.33P

Account balances, valuation and allocation.

Explanation of Solution

The category and the primary assertion being tested in discussing the adequacy of the allowance for doubtful accounts with the credit manager are account balances, and valuation and allocation respectively.

e.

To determine

Concept introduction: Audit procedures are processes and techniques that auditors perform to obtain audit evidence.

To indicate: The category and the primary assertion being tested in comparing the current-year gross profit percentage with the gross profit percentage for the last four years.

e.

Expert Solution
Check Mark

Answer to Problem 5.33P

Account balances, valuation and allocation.

Explanation of Solution

The category and the primary assertion being tested in comparing the current-year gross profit percentage with the gross profit percentage for the last four years are account balances, and valuation and allocation respectively.

f.

To determine

Concept introduction: Audit procedures are processes and techniques that auditors perform to obtain audit evidence.

To indicate: The category and the primary assertion being testedin examining a new plastic extrusion machine to ensure that this major acquisition was received.

f.

Expert Solution
Check Mark

Answer to Problem 5.33P

Account balances, Existence.

Explanation of Solution

The category and the primary assertion being testedin examining a new plastic extrusion machine to ensure that this major acquisition was received are account balance and existence respectively.

g.

To determine

Concept introduction: Audit procedures are processes and techniques that auditors perform to obtain audit evidence.

To indicate: The category and the primary assertion being tested in watching the client's warehouse personnel count the raw materials inventory.

g.

Expert Solution
Check Mark

Answer to Problem 5.33P

Account balances, completeness or existence.

Explanation of Solution

The category and the primary assertion being tested in watching the client's warehouse personnel count the raw materials inventory are account balances and completeness or existence respectively.

h.

To determine

Concept introduction: Audit procedures are processes and techniques that auditors perform to obtain audit evidence.

To indicate: The category and the primary assertion being tested in performing test counts of the warehouse personnel's count of the raw material.

h.

Expert Solution
Check Mark

Answer to Problem 5.33P

Account balances, completeness or existence.

Explanation of Solution

The category and the primary assertion being tested in performing test counts of the warehouse personnel's count of the raw material are account balances and completeness or existence respectively.

i.

To determine

Concept introduction: Audit procedures are processes and techniques that auditors perform to obtain audit evidence.

To indicate: The category and the primary assertion being tested in obtaining a letter from the client's attorney indicating that there were no lawsuits in progress against the client.

i.

Expert Solution
Check Mark

Answer to Problem 5.33P

Account balances, Valuation and allocation and Completeness.

Explanation of Solution

The category and the primary assertion being tested in obtaining a letter from the client's attorney indicating that there were no lawsuits in progress against the client are Account balances, Valuation and allocation and Completeness respectively.

j.

To determine

Concept introduction: Audit procedures are processes and techniques that auditors perform to obtain audit evidence.

To indicate: The category and the primary assertion being tested in tracing the prices used by the client's billing program for pricing sales invoices to the client's approved price list.

j.

Expert Solution
Check Mark

Answer to Problem 5.33P

Transaction and events, Accuracy.

Explanation of Solution

The category and the primary assertion being tested in tracing the prices used by the client's billing program for pricing sales invoices to the client's approved price list are Transaction and events, Accuracy respectively.

k.

To determine

Concept introduction: Audit procedures are processes and techniques that auditors perform to obtain audit evidence.

To indicate: The category and the primary assertion being tested in reviewing the general ledger for unusual adjusting entries.

k.

Expert Solution
Check Mark

Answer to Problem 5.33P

Account balances, Valuation and allocation.

Explanation of Solution

The category and the primary assertion being tested in reviewing the general ledger for unusual adjusting entries are Account balances, and Valuation and allocation respectively.

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