Reference no: EM132660562

Problem 1. Which of the following are examples of the completeness assertion?

(Several choices may be correct!)

A. All payroll-related accruals at year end are recorded.

B. The accounts receivable sub-ledger agrees to the general ledger control account.

C. All sales were recorded in the correct period.

D. There is no inventory on consignment.

E. Purchases made after year end were recorded in the prior year.

F. There are 10 delivery vans in the parking lot.

G. There are no undisclosed contingent liabilities.

Problem 2. Identify the type of audit evidence being used in each situation described below:

• The auditor examines vehicle insurance policies and checks insurance expense for the year. In addition, the auditor reviews the expense with respect to changes and ending balances in capital asset accounts.

a. Documentary, computational

b. Physical, confirmation, computational

c. Computational, documentary, electronic

d. Electronic, inspection, confirmation

e. Documentary, inspection, sufficient

f. Reliable, computational, external

• Using audit software, an auditor selects vendors' accounts payable with debit balances from the client's computer and compares these amounts and their calculation with cash disbursements and vendor credit memos.

a. Documentary, computational

b. Physical, confirmation, computational

c. Computational, documentary, electronic

d. Electronic, inspection, confirmation

e. Documentary, inspection, sufficient

f. Reliable, computational, external