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The primary objective of analytical procedures used in the final review stage of an audit is to




The primary objective of analytical procedures used in the final review stage of an audit is to;A. Obtain evidence from details tested to corroborate management assertions.;B. Obtain evidence on the validity of the assessment of control risk.;C. Assist the auditor in evaluating the overall financial statement presentation.;D. Identify areas that represent specific risks relevant to the audit.;15. Which of the following accounts would most likely be reviewed by the auditor to gain reasonable assurance that additions to the equipment (fixed asset) account are not understated?;A. Depreciation expense.;B. Gain on disposal of equipment.;C. Accounts payable.;D. Repairs and maintenance expense.;16. An auditor wishes to perform tests of controls on a client's cash disbursements procedures. If the control procedures leave no audit trail of documentary evidence, the auditor most likely will test the procedures by;A. confirmation and observation.;B. observation and inquiry.;C. analytical procedures and confirmation.;D. inquiry and analytical procedures.;8. Confirmations of accounts receivable provide the most evidence for which of the following assertions?;A. Existence.;B. Valuation or Allocation.;C. Rights and obligations.;D. Completeness.;9. In determining the adequacy of the allowance for uncollectible accounts, the least valuable evidence would be obtained from;A. an aging schedule of past due accounts which the auditor has tested.;B. correspondence with the client's collection agency.;C. financial statements of individual customers.;D. no reply to negative confirmations.;4. Which of the following would the auditor consider to be an incompatible operation if the cashier receives remittances?;A. The cashier prepares the daily deposit.;B. The cashier makes the daily deposit at a local bank.;C. The cashier posts the receipts to the accounts receivable subsidiary ledger cards.;D. The cashier endorses the checks.;2. Auditors ordinarily send a standard confirmation request to all banks with which the client has done business during the year under audit, regardless of the year-end balances. A purpose of this procedure is to;A. provide the data necessary to prepare a proof of cash.;B. request that a cutoff bank statement and related checks be sent to the audit.;C. detect kiting activities that may otherwise not be discovered.;D. seek information about contingent liabilities and security agreements.


Paper#27352 | Written in 18-Jul-2015

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