Which of the following would be the best protection for a company that wishes to prevent the “lapping” of trade accounts receivable?
Have customers send payments directly to the company’s depository bank.
Which of the following controls most likely would help ensure that all credit sales?
Which of the following controls most likely would help ensure that all credit sales transactions of an entity are recorded?
The billing department supervisor
matches prenumbered shipping documents with entries in the sales journal. The sequential numbering of documents provides a standard control over transactions.
Which of the following would be the best protection for a company that wishes to prevent the lapping?
Which of the following would be the best protection for a company that wishes to prevent the “lapping” of trade accounts receivable?
Have customers send payments directly to the company’s depository bank.
Which of the following most likely would give the most assurance concerning the valuation?
Which of the following most likely would give the most assurance concerning the valuation assertion about accounts receivable?
Assessing the allowance for uncollectible accounts for reasonableness
. The company is more aggressively collecting customer accounts. Valuation and allocation.
Which of the following is the best reason for Prenumbering in numerical sequence?
Which of the following is the best reason for prenumbering in numerical sequence documents such as sales orders, shipping documents, and sales invoices? …
Enables personnel to check the numerical sequence for missing documents and unrecorded transactions
.
What evidence is appropriate to determine whether recorded purchase transactions are valid?
What evidence is appropriate to determine whether recorded purchase transactions are valid and the vendors charged the correct prices?
Receiving reports and purchase orders.
1. Approval: The authority to approve the write off of uncollectible accounts is vested in
the Chief Financial Officer (CFO) at
each campus. All decisions to write off an account must be based on review of documented collection efforts demonstrating that due diligence has been exercised.
Which of the following is the purpose of tests of controls over shipping?
The purpose of tests of controls over shipping is to a.
Determine whether billed goods have been shipped
.
Which of the following is most likely to be considered a material weakness in internal control?
Which of the following is most likely to be considered a material weakness in internal control?
Ineffective oversight of financial reporting by the audit committee
.
Which of the following is an example of misappropriation of assets relating to sales?
Theft of cash register sales
. Theft of cash register sales is an example of misappropriation of assets.
Which of the following procedures would an auditor most likely perform to identify unusual sales transactions?
Which of the following procedures would an auditor most likely perform to identify unusual sales transactions?
Performing a trend analysis of quarterly sales.
Which of the following procedures would an auditor most likely perform to identify unusual?
Correct answer is option c
Explanation: Auditor most likely perform the procedure in searching for unrecorded liabilities is
vouch a sample of cash
…
What evidence are you looking for when you trace bills of lading to sales invoices?
Bill of lading is a legal document signed by the transporter of goods. … Comparing or tracing bill of lading to sales invoice provides
evidence that shipments to customers are billed
.
Which of the following responsibilities are separated in a good internal control system for cash disbursements?
Which of the following responsibilities are separated in a good internal control system for cash disbursements? –
Check writing and check signing
.
Should you only confirm accounts receivable balances when auditing revenue and accounts receivable?
Confirmation of accounts receivable is a generally accepted auditing procedure. … Thus, there is a presumption that the auditor will request the confirmation of accounts receivable during an audit unless one of the following is true:
Accounts receivable are
immaterial to the financial statements.
Which of the following audit procedures is best for identifying unrecorded accounts payable?
Which of the following audit procedures is best for identifying unrecorded trade accounts payable?
Reviewing cash disbursements recorded subsequent to the balance sheet date
to determine whether the related payable applies to the prior period.
