For each audit activity, identify the audit procedure. Each activity has one answer, but the audit...

For each audit activity, identify the audit procedure. Each activity has one answer, but the audit procedures can be used more than once.

- A. B. C. D. E. F. G. H. I. J.	Review lease agreements for capital leases.
- A. B. C. D. E. F. G. H. I. J.	Select a sample of inventory items from the receiving reports and follow the items to inventory records.
- A. B. C. D. E. F. G. H. I. J.	Select a sample of fixed asset additions and ask to see the assets.
- A. B. C. D. E. F. G. H. I. J.	Review the client's calculation of the allowance for doubtful accounts.
- A. B. C. D. E. F. G. H. I. J.	Compare sales invoice quantities to shipment documentation quantities to verify the client's assertion that this procedure is done by client personnel.
- A. B. C. D. E. F. G. H. I. J.	Select a sample of entries in the payroll journal and match the employee name, date of payment, and amount of pay to the employee personnel file.
- A. B. C. D. E. F. G. H. I. J.	Ask production and sales personnel concerning possible obsolete or slow-moving inventory.
- A. B. C. D. E. F. G. H. I. J.	Watch that an independent person double-checks the payroll wage rates and calculations before checks are printed.
- A. B. C. D. E. F. G. H. I. J.	Calculate the percentage of sales for salary and wages expense for this year and the prior year for reasonable presentation.
- A. B. C. D. E. F. G. H. I. J.	Send a form to the bank for the balances of the payroll checking accounts.

A.	Vouching
B.	Tracing
C.	Scanning
D.	Observation
E.	Confirmation
F.	Inspection of assets
G.	Inquiry
H.	Analytical Procedures
I.	Recalculation
J.	Reperformance

Expert Solution

Ans :

1. Review lease agreements for capital leases. - D. Observation

2. Select a sample of inventory items from the receiving reports and follow the items to inventory records. C. Scanning.

3. Select a sample of fixed asset additions and ask to see the assets. F. Inspection of asset

4. Review the client's calculation of the allowance for doubtful accounts. I . Recalculation

5. Compare sales invoice quantities to shipment documentation quantities to verify the client's assertion that this procedure is done by client personnel. B. Tracing

6. Select a sample of entries in the payroll journal and match the employee name, date of payment, and amount of pay to the employee personnel file. A. Vouching .

7. Ask production and sales personnel concerning possible obsolete or slow-moving inventory. G. Inquiry

8. Watch that an independent person double-checks the payroll wage rates and calculations before checks are printed. J . Reperformance

9. Calculate the percentage of sales for salary and wages expense for this year and the prior year for reasonable presentation. H. analytical procedures

10. Send a form to the bank for the balances of the payroll checking accounts. - E. confirmation

jeff jeffy answered 1 year ago

Several specific audit procedures are listed below. For each item, identify the type of procedure listed...

Several specific audit procedures are listed below. For each item, identify the type of procedure listed and which of the assertions is being addressed by the procedure. (a) Examine a list of investment securities held by the client’s trustee. (b) For a sample of transactions posted to the client’s accounts payable subsidiary ledger, examine supporting purchase orders and receiving reports agreeing amounts and information. (c) Send a written request to the client’s customer for verification of the amount owed to...

for each of the following audit procedures, (a) state the type of audit procedure used (e.g.,...

for each of the following audit procedures, (a) state the type of audit procedure used (e.g., observation), (b) state the general audit objective(s) tested by the procedure (no additional explanation is required), and (c) evaluate and briefly explain the reliability of the evidence produced by the audit procedure. Select a sample of the audit client’s suppliers’ invoices to see if these transactions have been recorded in the accounting records. Write to the audit client’s banks to ask for financial year-end...

Below are 12 audit procedures. Match each procedure according to one of the 8 appropriate types...

Below are 12 audit procedures. Match each procedure according to one of the 8 appropriate types of audit evidence. - Watch client employees count inventory to determine whether company procedures are being followed. - Count inventory items and record the amount in the audit files. - Trace postings from the sales journal to the general ledger accounts. - Calculate the ratio of cost of goods sold to sales as a test of overall reasonableness of gross margin relative to the...

Please list each of the three conditions of fraud and identify one internal control procedure that...

Please list each of the three conditions of fraud and identify one internal control procedure that management can implement to reduce the risk of fraud occurrence. Be specific in the type of control that you describe. For instance, state the business cycle (e.g., treasury, inventory, receivables, etc.) and the way in which the control acts to mitigate fraud risk.

For each description/definition, select the appropriate completing the audit procedure. - A....

For each description/definition, select the appropriate completing the audit procedure. - A. B. C. D. E. F. G. H. I. J. K. L. When auditors become aware of facts that existed at the date of the financial statements and auditor's reports, auditors should require the client to disclose the facts and their impact...

Which one of the following would not be considered a substantive audit procedure?

Which one of the following would not be considered a substantive audit procedure?A. Obtaining a letter from an investment broker confirming an account balance.B. Using generalized audit software to identify all accounts receivable over 90 days outstanding.C. Selecting a sample of sales orders and checking that all orders are authorized by a sales manager.D. Multiplying the number of employees on each pay scale by the yearly pay rate to determine an estimate of payroll expense.

For each of the following audit procedures, identify the audit objective, a – e, that the...

For each of the following audit procedures, identify the audit objective, a – e, that the procedure will be most likely to achieve. The audit objective may be used once, more than once, or not at all. While a procedure may meet more than one audit objective, you need only identify one audit objective per procedure. Existence or Occurrence. Rights or Obligation. Valuation. Cutoff Completeness. Presentation. Trace a sample of shipping documents to recorded sales transactions. Send standard bank confirmation...

Potential Audit Procedure Failures. For each of the general audit procedures of; Recalculation, Observation, Confirmation (accounts...

Potential Audit Procedure Failures. For each of the general audit procedures of; Recalculation, Observation, Confirmation (accounts receivable, securities or other assets), Injuiry, Inspection of internal domuments, reperformance and analystical procedures. Discuss one way the procedure can be misapplied or the auditors could be misled in such a way to render the work (audit evidence) misleading or irrelevent. Give examples

Consider the value chain for a restaurant. Identify one major business activity for each of the...

Consider the value chain for a restaurant. Identify one major business activity for each of the five-core business processes. For each activity, specify one important decision the restaurant will have to make.

PART A Every audit procedure obtains one or more of the following types of ...

PART A Every audit procedure obtains one or more of the following types of evidence: PHYSICAL EXAMINATION CONFIRMATION INSPECTION /DOCUMENTATION ANALYTICAL PROCEDURES INQUIRES OF CLIENT RECALCULATION REPERFORMANCE OBSERVATION For each of the following audit procedures, classify each according to the eight types of audit evidence above Inquire of management whether there is any obsolete inventory on hand at the balance sheet date Examine a sample of vendor’s invoices to determine whether the goods or services received are...

Question