Reference no: EM132683936

Problem 1: Which of the following audit tests would be regarded as test of controls?

A Performing bank reconciliations for the client's trading account.

B Observing the client's warehouse staff checking shipments.

C Sending an external confirmation to a debtor to check the outstanding balance at year end.

D Counting inventory and checking that the quantity is accurately recorded in the inventory records.

Problem 2: Which of the following is the most effective control activity to detect vouchers that were prepared for the payment of goods that were not received?

A Compare goods received with goods requisitioned in the receiving department.

B Count goods upon receipt in the storeroom.

C Verify vouchers for accuracy and approval in the internal audit department.

D Match purchase order, receiving report and supplier's invoice for each voucher in the accounts payable department.