Reference no: EM132807431

Problem 1: Which of the following is not an assurance engagement?

Select one:

Option 1: A performance audit
Option 2: A consulting engagement to help an organization meet its tax obligations
Option 3: A review of historical financial information
Option 4: An audit of the effectiveness of internal control

Problem 2: When evaluating the risk of material misstatement with regards to defalcations involving receivables (a credit entry to accounts receivable for amounts not received), the auditor would expect an experienced bookkeeper to most likely debit which of the following accounts?

Select one:

Option 1: Sales returns
Option 2: Miscellaneous income
Option 3: Accounts payable
Option 4: Cash