Page 45 - eBook Audit Of Financial Statement Components

21. When testing accounts receivable, an auditor should be

concerned about all of the following audit objectives except:
A Existence
B Cut-off
C Timing
D Accuracy

22. There is a relationship between transaction-related audit
objectives for sales and collection cycle and balance related audit
objectives for accounts receivable in each of the following areas
except:
A Existence
B Accuracy
C Realizable value
D Cut-off

23. Comparing account receivable aging categories as a percentage of
accounts receivable with previous years is an analytical procedure
to determine if there is:
A An overstatement or understatement of allowance for
uncollectable accounts and bad debt expenses.
B An overstatement or understatement of sales
C An overstatement or understatement of sales returns and
allowances
D All of the above

24. Confirmation is the most important test of details for:
A Fixed assets
B Sales
C Payroll
D Accounts receivable

25. When auditing accounts receivable, an auditor should be aware of
the following items that may affect accounts receivable:
A Assigned receivables
B Factoring of receivables
C Pledged receivables
D All of the above

26. A type of positive confirmation is:
A Population
B Invoice
C Cut-off
D Sample

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