Which of the following procedures would an auditor most likely perform for year-end

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Which of the following actions would best conceal the theft of cash collections from sales on account? A] Understating the cash receipts journal amounts. B] Understating the sales journal amounts. C] Overstating the accounts receivable control [G/L] account. D] Overstating the accounts receivable subsidiary ledger. 2
To determine whether the entity's internal control operated effectively to minimize the likelihood of failing to bill a customer for a shipment of goods, the auditor should begin by selecting a sample of transactions from the population represented by the A] Accounts receivable subsidiary ledger. B] Customer order file. C] Bill of lading [shipping report] file. D] Sales invoice file. 3
Which of the following is not a factor that an auditor would consider when assessing the inherent risk associated with sales transactions? A] The nature of the credit authorization process. B] Billings are made using the percentage-of-completion method of revenue recognition. C] Each sales transaction is individually negotiated with the customer. D] The conditions of the sale allow for a right of return or the right to modify the purchase agreement. 4
Tracing bills of lading [shipping reports] to sales invoices as a test of controls related to the sales and collection process provides evidence that A] Shipments to customers were recorded in the sales journal. B] Recorded sales were actually shipped. C] Customers were billed for goods shipped to them. D] Customers were billed for the correct amounts. 5
Customers are more likely to complain to the entity if which of the following assertions for cash receipts is violated? A] Existence. B] Completeness. C] Authorization. D] Rights and obligations. 6
Which of the following would not be considered a test in the area of accounts receivable that relates to the existence assertion? A] Evaluate proper segregation of duties. B] Confirm accounts receivable directly with customers. C] Trace the record of shipping to inclusion in the accounts receivable subsidiary ledger. D] Review receipt of cash from customers in the period subsequent to the balance sheet date. 7
Which of the following comparisons would be most useful to an auditor in evaluating the overall results of an entity's sales efforts? A] Current year sales to current year budgeted sales. B] Current year ending accounts receivable to prior year ending accounts receivable. C] Current year bad debts expense as a percentage of accounts receivable to the same value for the prior year. D] Current year gross profit to prior year gross profit. 8
An auditor's purpose in reviewing credit ratings of customers with delinquent accounts receivable is most likely to obtain evidence concerning management's assertions relating to A] Valuation or allocation. B] Presentation and disclosure. C] Existence or occurrence. D] Rights and obligations. 9
Which of the following procedures would an auditor most likely perform related to year-end accounts receivable confirmations when the auditor does not receive replies even after second requests? A] Review the cash receipts journal for the month prior to year-end. B] Inspect related shipping records and sales invoices documenting the merchandise sold to customers. C] Intensify the study of internal control concerning the revenue and collection cycle. D] Increase assessed detection risk related to existence assertion in this area. 10
The negative request form of an accounts receivable confirmation is particularly useful when

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A] a B] b C] c D] d 11
According to SAB 101, which of the following is not a criterion for revenue recognition? A] Delivery has occurred or services have been rendered. B] Cash is received. C] The seller's price to the buyer is determinable. D] Persuasive evidence of an arrangement exists. 12
Which of the following is not a key segregation of duties in the revenue process? A] The credit function should be segregated from the billing function. B] The shipping function should be segregated from the billing function. C] The accounts receivable function should be segregated from the invoice preparation function. D] The cash receipts function should be segregated from the accounts receivable function. 13
Which of the following is the population the auditor is most likely to draw from in order to test the cutoff assertion for revenue? A] Shipping documents. B] Customer sales orders. C] Customer account receivable balances. D] The record of sales returns. 14
Which of the following is not a typical procedure performed related to other non-trade receivables? A] Confirmation of the amount with the other party. B] Evaluation of the collectability of other receivables. C] Examination of the note for repayment terms and interest arrangements. D] Write-off of receivables from officers against their bonus pay as those arrangements are inappropriate. 15
If tolerable misstatement for the accounts receivable balance is $75,000 and the aggregate factual misstatement found by the auditor is $82,000, the auditor is most likely to A] Resign from the engagement. B] Issue a qualified opinion. C] Request that the entity adjust its accounts receivable balance by $7,000. D] Request that the entity adjust its accounts receivable balance by $82,000.

Which of the following procedures would an auditor most likely perform when auditing?

What is year

Which of the following procedures would an auditor most likely performed in planning a financial statement audit?

What audit procedures can the auditor complete only at or after period end?