Reference no: EM132944888

Problem 1: Which one of the following tests of details would be appropriate to test the completeness assertion of receivables:

Option 1: Test the mathematical accuracy of the sales transaction file.
Option 2: Vouch recorded sales to the records of products ordered and shipped.
Option 3: Compare the current year s to the prior year s allowance for doubtful debts as a percentage of receivables and sales.
Option 4: Trace the postings of the totals in sales transaction file to the general Ledger.

Problem 2: The auditor calculates the inventory turnover ratio and compares it with those of previous years as a test of inventory obsolescence. This procedure is best described as:

Option 1: Tracing.
Option 2: Inspection.
Option 3: Vouching.
Option 4: Analytical procedure.