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38 Cards in this Set
- Front
- Back
Examining adequacy of allowances
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Accuracy/valuation
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Examine cash receipts for past due accounts
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Accuracy/valuation
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Agree pricing and terms to sales invoices and company policies
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Accuracy/valuation
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Recalculate schedules and totals
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Accurcy/valuation
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Confirm receivables and cash balance
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Existence/occurence
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Vouch sales invoices back to shipping documents and sales orders
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occurence
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Trace shipping docs back to sales invoices and sub ledger
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completeness
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Compare aged T/B and sub ledgers to GL
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completeness
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Inquire as to receivable pledges or leins
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Rights/obligations
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Review credit or loan agreements
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Rights/obligations
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Review factoring activity or agreements
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rights/obligations
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review special sales agreements
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rights/obligations
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Most likely to be detected by auditors review of clients sales cut off
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unrecorded sales for the year
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Negative confirmations are less effective than positive because
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auditor can't infer that all nonrespondents actually confirmed their balances
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In evaluating the adequacy of the allowance for doubtful accts an auditor most likely reviews the enity's aging of receivables to support management's assertion of
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valuation
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employees who maintain AR subsidiary ledger should not also approve
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Write offs of customer accounts
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Most likely to help ensure that all credit revenue transactions of an entity are recorded
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billing department supervisor matches prenumbered shipping documents with entries in the sales journal
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internal control that would be most likely to deter the lapping of collection from customers
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Segregation of duties between receiving cash and posting the accts rec ledger
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confirm a sample of accts rec and perform follow up procedures
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existence (of AR)
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Perform sales cut off tests
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Completeness
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examine invoice for credit approval
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accuracy
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compare pricing to approved price listing
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accuracy
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observe separation of duties
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occurence
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Examine evidence of manager's reivews of actual vs budget and follow up on unusual item
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occurence
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Examine paid vouchers for PAID stamps
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occurence
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Observe client checking sequence
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Completeness
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Examine contracts for authorization.
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accuracy
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observe client comparing receiving quantities and inspect documentary evidence of comparison
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accuracy
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compare date of receipt to date recorded in voucher journal
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cutoff
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confirm high risk accounts payable with vendors
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existence
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perform search for unrecorded liabilities
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completeness
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test mathmatical accuracy of payables listing
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valuation/allocation
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All PP&E are recorded
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completeness
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Two primary means of gathering evidence for PP&E are
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physical inspection (existence) and vouching
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perform search for unrecorded liabilities
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completeness
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test mathmatical accuracy of payables listing
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valuation/allocation
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All PP&E are recorded
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completeness
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Two primary means of gathering evidence for PP&E are
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physical inspection (existence) and vouching
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