Reference no: EM131618042
Question: Types of Audit Tests. Indicate whether each of the following audit procedures is a test of controls, a substantive test, or dual-purpose test. Next, indicate the financial statement assertion most closely related to each audit procedure.
a. Vouch recorded sales invoices to supporting shipping documents.
b. Inspect recorded sales invoices for credit approval.
c. Vouch recorded sales invoices prices to the approved price list.
d. Send confirmations to all customers regarding accounts receivable.
e. Recalculate the arithmetic accuracy of the recorded sales invoices.
f. Compare the shipment date of recorded sales invoices with the invoice record date.
g. Trace recorded sales invoices to posting in the general ledger control account and in the correct customer's account.
h. Select a sample of shipping documents from the shipping department file and trace shipments to recorded sales invoices.
i. Scan recorded sales invoices and shipping documents for missing numbers in sequence.
j. Vouch sales invoices and shipping documents.
k. Evaluate the adequacy of the allowance for doubtful accounts.
l. Obtain financial statements or credit reports on large past due accounts and inquire of the credit manager about collections.
m. Calculate an estimate of the allowance for doubtful accounts using prior relations of write-offs and sales.
|
Perform an exploratory data analysis
: Find appropriate statistics that will help to understand the data set - Describe the key elements of center, variation, distribution, and outliers.
|
|
Find the market price of the bond
: Find the market price of the bond if the yield rate is 8% compounded semiannually.
|
|
Did the equipment purchase prove to be desirable
: At the end of 8 years, the equipment was sold for S 40 000 Assuming interest at 8%, did the equipment purchase prove to be desirable?
|
|
Describe four ways that power and psychological size
: Describe four ways that power and psychological size can be abused. For each abuse, describe a solution to the problem created by that abuse.
|
|
Calculate an estimate of the allowance for doubtful accounts
: Types of Audit Tests. Indicate whether each of the following audit procedures is a test of controls, a substantive test, or dual-purpose test.
|
|
Calculate the net present values for project
: Calculate the Net Present Values for project A and project B assuming the company’s required rate of return is 14%.
|
|
Explain the demand-marginal-revenue
: Explain the demand, marginal-revenue, and the marginal-cost curves for a monopolist. Show either or both a. profit-maximizing level of output and/or the profit-
|
|
Trying to decide which of three alternatives to use
: Your startup needs a $10,000 loan for the next 25 days. It is trying to decide which of three alternatives to use:
|
|
Fixed versus flexible exchange rates and capital controls
: discuss them in terms of fixed versus flexible exchange rates, capital controls, and currency boards.
|