26 Jun WHAT TEST IS SARAH PERFORMING AND WHAT MANAGEMENT ASSERTION IS SHE TESTING?
Concept Reinforcement Test 2 – Audit Spring 2016
Management Assertions about classes of transactions are
Occurrence
Completeness
Authorization
Accuracy
Cutoff
Classification
Required: For each management assertion noted above, indicate an example of a misstatement that could occur for revenue transactions. (Chapter 5)
Sarah is auditing the sales of a new client. In one procedure Sarah performs, she begins with the original sales documents and then searches the accounting records to find the corresponding entry. What test is Sarah performing and what management assertion is she testing?
Sarah is auditing the sales of another client. In one procedure Sarah performs, she begins with a sample of sales transactions from the sales journal and finds the corresponding sales document. What test is Sarah performing and what management assertion is she testing? (Chapter 5)
For each of the following specific audit procedures, indicate the type of audit procedure it represents: (1) inspection of records, (2) inspection of tangible assets, (3) observation, (4) inquiry, (5) confirmation, (6) recalculation, (7) reperformance, (8) analytical procedures, (9) scanning (Chapter 5)
Sending a written request to the entitys customers requesting that they report the amount owed to the entity
Examining large sales invoices for a period of two days before and after year-end to determine if sales are recorded in the proper period
Agreeing the total of the accounts receivable subsidiary ledger to the accounts receivable general ledger accounts
Discussing the adequacy of the allowance for doubtful accounts with the credit manager
Comparing the current year gross profit percentage with the gross profit percentage of the last four years
Examining a new plastic extrusion machine to ensure that this major acquisition was received
Watching the entitys warehouse personnels count of the raw material inventory
Performing test counts of the warehouse personnels count of the raw material
Obtaining a letter from the entitys attorney indicating that there were no lawsuits in progress against the entity
Tracing the prices used by the entitys attorney indicating that there were no lawsuits in progress against the entity
Reviewing the general ledger for unusual adjusting entries
According to the text, what are the main functions of working papers? (Chapter 5)
The text gives four categories of Control Activities. Please list the first three and provide an example of each. For the examples you provide, it may be helpful to think in terms of the transaction cycles (i.e expenditure, revenue, etc..) (Chapter 6)
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.