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-2015Price : $27