Which of the following procedures is least likely to be completed before the balance sheet date? Show
Search for unrecorded liabilities An audit of the balance in the accounts payable account is ordinarily not designed to: a) Detect accounts payable that are substantially past due Which of the following is the best audit procedure for determining the existence of unrecorded liabilities? d) Examine selected cash disbursements in the period subsequent to year-end Auditor confirmation of accounts payable balances at the balance sheet date may be unnecessary because: d) There is likely to be other reliable external evidence available to support the balances A client erroneously recorded a large purchase twice. Which of the following internal control measures would be most likely to detect this error in a timely and efficient manner? b) Reconciling vendors' monthly statements with subsidiary payable ledger accounts For effective internal control, the accounts payable department should compare the information on each vendor's invoice with the: a) Receiving report and the purchase order When confirming accounts payable, the approach is most likely to e one of: b) Selecting the accounts of companies with whom the client has previously done the most business, plus a sample of other accounts In an audit, the valuation of year-end accounts payable is most likely addressed by: Ordinarily, the most significant assertion relating to accounts payable is: The least likely approach in auditing management's estimate relating to an accrued liability is to: d) Send confirmations relating to the estimate To determine that each voucher is submitted and paid only once, when a payment is approved, supporting documents should be canceled by the: c) Individual who signs the checks In performing a test of controls, the auditors vouch a sample of entries in the purchases journal to the supporting documents. Which assertion would this test of controls most likely test? Which of the following is least likely to be an audit objective for debt? c) Determine that the client has rights to receive proceeds relating to the redemption of debt The auditors would be most likely to find unrecorded long-term liabilities by analyzing: A likely reason that consideration of client compliance with debt provisions is important to an audit is that violation of such debt provisions may affect the total recorded: A transfer agent and a registrar are most likely to provide the auditor with evidence on: b) shares issued and outstanding The audit procedure of confirmation is least appropriate with respect to: b) holders of common stock An auditor is most likely to trace treasury stock purchase transactions to the: a) numbered stock certificates on hand In the continuing audit of a manufacturing company of medium size, which of the following areas would you expect to require the least amount of audit time? The auditors can best verify a client's bond sinking fund transactions and year-end balance by: c) confirmation with the bond trustee The auditors' program for the examination of long-term debt should include steps that require the: b) examination of copies of debt agreements All corporate capital stock transactions should ultimately be traced to the: d) numbered stock certificates Which of the following is most likely to be an audit objective in the audit of owners' equity? c) determine that the presentation and disclosure of owners' equity is appropriate In an audit of a sole proprietorship, a common difficulty is lack of: a) segregation of personal net worth and business capital 1. Which of the following is least likely to be considered a substantive procedure relating to payroll? d. test whether employee time reports are approved by supervisors 2. Which of the following is the best way for auditors to determine that every name on a company’s payroll is that of a bona fide employee presently on the job? c. Make a surprise observation of the company’s regular distribution of paychecks on a test basis 3. As a result of analytical procedures, the independent auditors determine that the gross profit percentage has declined from 30% in the preceding year to 20% in the current year. The auditors should: d. Consider the possibility of misstatement in the financial statements 4. When auditing the statement of cash flows, which of the following would an auditor not expect to be a source of receipts and payments? 5. The search for unrecorded liabilities for a public company includes procedures usually performed through the c. Date of the auditors’ report 6. The aggregated misstatement in the financial statements is made up of: a. Known misstatements, projected misstatements, and other misstatements 7. A possible loss, stemming from past events that will be resolved as to existence and amounts, is referred to as a(n) 8. Which of the following is most likely to be considered a type 1 subsequent event? c. Customer checks deposited prior to year end but determined to be uncollectible after year end 9. An auditor accepted an engagement to audit the 20X8 financial statements of EFG Corporation and began the fieldwork on September 30, 20X8. EFG gave the auditor the 20X8 financial statements on January 17, 20X9. The auditor completed the audit on February 10, 20X9 and delivered the report on February 16, 20X9. The client’s representation letter normally would be dated: 10. Which of the following procedures is most likely to be included in the financial review stage of an audit? d. Perform analytical procedures 11. Subsequent to the issuance of the auditor’s report the auditor became aware of facts existing at the report date that would have affected the report had the auditor then been aware of such facts. After determining that the information is reliable, the auditor should next: b. Determine whether there are person relying or likely to rely on the financial statements who would attached importance to the information 12. Which of the following events occurring on January 5, 20X2, is most likely to result in an adjusting entry to the 20X1 financial statements? c. Settlement of litigation Which of the following procedures would an auditor most likely perform before the balance sheet?Which of the following procedures would an auditor most likely perform prior to the balance sheet date? Auditing significant travel and entertainment expenses can be performed at an interim period, applying procedures to transactions occurring between the testing and the end of the period, as appropriate.
Which of the following is the most efficient audit procedure for the detection of unrecorded liabilities?Which of the following is the most efficient audit procedure for the detection of unrecorded liabilities? Compare cash disbursements in the subsequent period with the accounts payable trial balance at year-end.
When subsequent procedures to verify individual vouchers are done after the balance sheet date the client should?When subsequent procedures to verify individual vouchers are done after the balance sheet date, the client should: prepare a list of year-end unpaid vouchers.
Which of the following procedures relating to the examination of accounts payable could the auditor delegate entirely to the entity's employees?sales cutoff review. Which of the following procedures relating to the examination of accounts payable could the auditor delegate entirely to the entity's employees? Prepare a schedule of accounts payable.
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