Procedures in an audit program

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Reference no: EM132068579

1. Other factors equal, changing the estimated population deviation rate from 2% to 4% would cause the required sample size to?

a. become indeterminate

b. increase

c. remain the same

d. decrease

2. Attributes sampling would be an appropriate method to use on which one of the following procedures in an audit program?

a. Review sales transactions for large and unreasonable amounts.

b. Observe whether the duties of the accounts receivable clerk are separate from handling cash.

c. Examine a sample of duplicate sales invoices for credit approval by the credit manager.

d. Review the aged schedule of accounts receivable to determine if receivables from officers are included

3. Proper separation of duties is useful to prevent various types of misstatements. Which of the following is not an essential?

a. personnel doing internal comparisons should be independent of those entering the original data.

b. separate the credit-granting function from the sales function

c. person having access to cash should not have access to checks from customers

d. anyone responsible for inputting sales and cash receipts transactions information into the computer should be denied access to cash

4. Which is consistent with billing customers before year-end for goods shipped near year-end?

a. AR/CR is high

b. REV/COS is high

c. REV/AR is high

d. none of the above

Reference no: EM132068579

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