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Sales transaction of a wholesaling business




1. At which point in an ordinary sales transaction of a wholesaling business would a lack of specific authorization be of least concern to the auditor in the conduct of an audit?;A. Granting of credit.;B. Selling of goods for cash.;C. Shipment of goods.;D. Determination of discounts.;2. Which of the following is most likely to be detected by an auditor's review of the client's sales cutoff?;A. Lapping of year-end accounts receivable.;B. Excessive sales discounts.;C. Unrecorded sales for the year.;D. Unauthorized goods returned for credit.;3. Purchase cutoff procedures should be designed to test whether or not all inventory;A. On the year end balance sheet was carried at lower of cost or market.;B. On the year end balance sheet was paid for by the company.;C. Owned by the company is in the possession of the company.;D. Purchased and received before the year end was recorded.;4. The proper use of pre-numbered termination notice forms by the Payroll Department should provide assurance that all;A. Un-cashed payroll checks were issued to employees who have not been terminated.;B. Terminated employees are removed from the payroll.;C. Personnel files are kept up to date.;D. Employees who have not been terminated receive their payroll checks.;5. An auditor most likely would assess control risk at the maximum if the payroll department supervisor is responsible for;A. Authorizing payroll rate changes for all employees.;B. Examining authorization forms for new employees.;C. Comparing payroll registers with original batch transmittal data.;D. Hiring all subordinate payroll department employees.


Paper#26907 | Written in 18-Jul-2015

Price : $37