Audit Deck 4 (Audit Procedures, Financial Ratios) Flashcards
What is the acronym for audit procedures to collect audit evidence?
C FIVE CARROT WARS
What procedure does the C stand for C FIVE CARROT WARS?
Confirmation
What procedures are a part of the FIVE in C FIVE CARROT WARS?
FOOTING, Cross-Footing, and Recalculation
INQUIRY
VOUCHING
EXAMINATION/Inspection
What procedures are a part of the CARROT in C FIVE CARROT WARS?
CUTOFF Review
ANALYTICAL Procedures
REPERFORMANCE
RECONCILIATION
OBSERVATION
TRACING
What procedures are a part of the WARS in C FIVE CARROT WARS?
WALK-THROUGH
AUDITING Related Accounts Simultaneously
REPRESENTATION Letter
SUBSEQUENT Events Review
Accounts receivable turnover = Sales (net) / ______
Average Accounts Receivable (net)
Days Sales in Accounts Receivable = Ending Accounts Receivable (net) / ( _______ / 365)
Sales (net)
Days in Inventory = Ending Inventory / ( ______ / 365)
COGS
Accounts Payable Turnover = COGS / ________
Average Accounts Payable
Days of Payables Outstanding = Ending Accounts Payable / ( ______ / 365)
COGS
CASH CONVERSION CYCLE = Days sales in accounts recievable + Days in Inventory - ____________
Days of Payables Outstanding
Asset Turnover = Sales (net) / ___________
Average Total Assets
Profit Margin = _______ / Sales(net)
Net Income
Return on Assets = Net Income / _________
Average Total Assets
Return on Sales = Income before interest income, interest expense, and taxes / ________
Sales (net)
Return on Equity = Net Income / __________
Average Total Equity
Gross (profit) margin = (Sales (net) - _______ ) / Sales (net)
COGS
Operating Cash Flow Ratio = Cash Flow from Operations / _________
Ending Current Liabilities
Basic Earnings per Share = Income available to common shareholders / weighted average _______ shares outstanding
Common
Price-earnings ratio = Price per share / ______________
Basic Earnings per share
Dividend Payout = Cash Dividends / ________
Net Income
Debt to Equity = _________ / Total Equity
Total Liabilities
Total Debt Ratio = Total Liabilities / ___________
Total Assets
Equity Multiplier = _______ / Total Equity
Total Assets
Times interest earned = Income before Interest expenses and taxes / ________
Interest Expense
