Revenue transaction involves exchange of goods and services for the cash payments or for credit. To select: Choose the correct option from the proposed statements that relates to the given condition.

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Answer 1

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Chapter 9, Problem 22MCQ

To determine

Introduction:

Revenue transaction involves exchange of goods and services for the cash payments or for credit.

To select:

Choose the correct option from the proposed statements that relates to the given condition.

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ased on an assessment of audit risk, the auditors are concerned with the following two risks: The risk that that the client might be making duplicate payments to vendors. The risk that the client’s accounting clerk might be making unauthorized payments to himself. Required: a. Assuming that the client has a manual accounting system, describe how the auditors can design a test to identify the duplicate payments and unauthorized payments. b. Assuming that the client has an IT accounting system, describe how the auditors might use data analytic software to design a test to identify the duplicate payments and the unauthorized payments. b. Assuming that the client has an IT accounting system, describe how the auditors might use data analytic software to design a test to identify the duplicate payments and the unauthorized payments.

Which of the following most likely would be included with the client’s confirmation letter, when an auditor decided to confirm customers’ account balances rather than individual invoices.? Select one: Question 28Answer a. A client-prepared letter reminding the customerthat a nonresponse will cause a second request tobe sent. b. An auditor-prepared letter explaining that a nonresponse may cause an inference that the accountbalance is correct. c. An auditor-prepared letter requesting the customer to supply missing and incorrect informationdirectly to the auditor. d. A client-prepared statement of account showingthe details of the customer’s account balance.

Based on an assessment of audit risk, the auditors are concerned with the following two risks: The risk that that the client might be making duplicate payments to vendors. The risk that the client’s accounting clerk might be making unauthorized payments to himself. Required: a. Assuming that the client has a manual accounting system, describe how the auditors can design a test to identify the duplicate payments and unauthorized payments. b. Assuming that the client has an IT accounting system, describe how the auditors might use data analytic software to design a test to identify the duplicate payments and the unauthorized payments. c. Describe the advantages of using data analytics software to identify unusual transactions or entries.

Answer 2

Question

Chapter 9, Problem 22MCQ

To determine

Introduction:

Revenue transaction involves exchange of goods and services for the cash payments or for credit.

To select:

Choose the correct option from the proposed statements that relates to the given condition.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 3

Question

Chapter 9, Problem 22MCQ

To determine

Introduction:

Revenue transaction involves exchange of goods and services for the cash payments or for credit.

To select:

Choose the correct option from the proposed statements that relates to the given condition.

Expert Solution & Answer

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Answer 4

Question

Chapter 9, Problem 22MCQ

To determine

Introduction:

Revenue transaction involves exchange of goods and services for the cash payments or for credit.

To select:

Choose the correct option from the proposed statements that relates to the given condition.

Expert Solution & Answer

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Answer 5

Chapter 9, Problem 22MCQ

To determine

Introduction:

Revenue transaction involves exchange of goods and services for the cash payments or for credit.

To select:

Choose the correct option from the proposed statements that relates to the given condition.

Answer 6

Chapter 9, Problem 22MCQ

To determine

Introduction:

Revenue transaction involves exchange of goods and services for the cash payments or for credit.

To select:

Choose the correct option from the proposed statements that relates to the given condition.

Answer 7

Chapter 9, Problem 22MCQ

To determine

Introduction:

Revenue transaction involves exchange of goods and services for the cash payments or for credit.

To select:

Choose the correct option from the proposed statements that relates to the given condition.

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

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Answer 11

Ch. 9 - Prob. 1TFQ Ch. 9 - Prob. 2TFQ Ch. 9 - Prob. 3TFQ Ch. 9 - Prob. 4TFQ Ch. 9 - Prob. 5TFQ Ch. 9 - Prob. 6TFQ Ch. 9 - Prob. 7TFQ Ch. 9 - Prob. 8TFQ Ch. 9 - Prob. 9TFQ Ch. 9 - Prob. 10TFQ

Revenue transaction involves exchange of goods and services for the cash payments or for credit. To select: Choose the correct option from the proposed statements that relates to the given condition.

Solution Summary: The author explains the technique of lapping, which involves embezzlement of cash through misstating the balances of individual customer accounts receivables.

Introduction:

Revenue transaction involves exchange of goods and services for the cash payments or for credit.

To select:

Choose the correct option from the proposed statements that relates to the given condition.

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Chapter 9 Solutions

Revenue transaction involves exchange of goods and services for the cash payments or for credit. To select: Choose the correct option from the proposed statements that relates to the given condition.

Solution Summary: The author explains the technique of lapping, which involves embezzlement of cash through misstating the balances of individual customer accounts receivables.

Introduction: Revenue transaction involves exchange of goods and services for the cash payments or for credit. To select: Choose the correct option from the proposed statements that relates to the given condition.

Want to see the full answer?

Chapter 9 Solutions

Introduction:

Revenue transaction involves exchange of goods and services for the cash payments or for credit.

To select:

Choose the correct option from the proposed statements that relates to the given condition.