Audit Evidence II Flashcards
In testing for unrecorded retirements of equipment, an auditor most likely would
Select items of equipment from the accounting records and then locate them during the plant tour
Which of the following audit procedures is best for identifying unrecorded trade accounts payable?
Reviewing cash disbursements recorded subsequent to the balance sheet date to determine whether the related payables apply to the prior period
Which of the following procedures would an auditor most likely perform in searching for unrecorded liabilities?
Vouch a sample of cash disbursements recorded just after year end to receiving reports and vendor invoices
When using confirmations to provide evidence about the completeness assertion for accounts payable, the appropriate population most likely would be
Vendors with whom the entity has previously done business
Which of the following procedures would an auditor least likely perform before the balance sheet date?
Confirmation of accounts payable
When searching for unrecorded liabilities at year end, an auditor most likely would examine
Cash disbursements recorded in the period subsequent to year end
To determine whether accounts payable are complete, an auditor performs a test to verify that all merchandise received is recorded. The population of documents for this test consists of all
Receiving reports
An auditor traced a sample of purchase orders and the related receiving reports to the purchases journal and the cash disbursements journal. The purpose of this substantive audit procedure most likely was to
Determine that purchases were properly recorded
In auditing accounts payable, an auditor’s procedures most likely would focus primarily on management’s assertion of
Completeness
Which of the following procedures would an auditor most likely perform in searching for unrecorded payables?
Compare cash payments occurring after the balance sheet date with the accounts payable trial balance
In performing tests concerning the granting of stock options, an auditor should
Trace the authorization for the transaction to a vote of the board of directors
An auditor most likely would extend substantive tests of payroll when
Overpayments are discovered in performing tests of details
An auditor reviews the reconciliation of payroll tax forms that a client is responsible for filing in order to
Identify potential liabilities for unpaid payroll taxes
Which statement should be included in a practitioner’s report on the application of agreed-upon procedures?
A statement referring to standards established by the AICPA
practitioner has been engaged to apply agreed-upon procedures in accordance with Statements on Standards for Attestation Engagements (SSAE) to prospective financial statements. Which of the following conditions must be met for the practitioner to perform the engagement?
The practitioner and specified parties agree upon the procedures to be performed by the practitioner
