Reference no: EM132622842

Problem 1: Which of the following is one of the methods that an auditor assesses the adequacy of the client's closing procedures?

a) Review how many bank accounts the client uses

b) None of options are correct

c) Trace transactions around year-end documents to determine appropriate dates

d) Send confirmations to the client's lawyer to confirm if there are any lawsuits

e) Observe how the client prepares their annual report

Problem 2: Which of the following audit tests would be regarded as a "test of controls"?

a) Discussing the valuation of inventory with the client

b) Examining the bank reconciliation to ensure the person preparing it is a different person from the cash accountant for segregation of duties purposes

c) None of these options are correct

d) Counting the quantities in the warehouse and comparing them to the perpetual records to verify amounts.

e) Reviewing an aging of receivables with the credit manager to assess the collectability of receivables