Audit 2 Chp 1A

Assertion is

• requirement accounting standard

• fullfill requirement accounting standard

• disclosed requirement accounting standard

• presentation requirement accounting standard

Objective financial audit is

• Ensure true & fair view

• Ensure correct & accurate view

• Ensure correct & fair view

• Ensure accurate & true view

Complexity of inventory because

• Double entry record

• Single entry record

• Cross entry record

• Triple entry record

Issue arise for test of control on non current asset is

• amount not match between record and document

• date not tally with document

• Category of asset not proper classification

• No proper authorize on asset purchase

Component in statement of comprehensive income are below except for

• Operating Expenditure

• Capital Expenditure

• Non Operating Expenditure

• Exclusive Operating Expenditure

Below are document for purchasing cycle transaction except for

• Purchase order

• Delivery note

• Purchase invoice

• Receipt Issued

Audit procedure applied on revenues is

• Test of Control and Test of Details

• Test of Appearance and Test of Details

• Test of Control and Test of Validity

• Test of Appearance and Test of Validity

The suitable assertion concept for item inventory as below except for

• Completeness

• Cut Off

• Existence

• Accuracy

Transaction record for document sales invoice is

• Dr Sales

  Cr Invoice

• Dr Trade Debtor

  Cr Sales

• Dr Sales

  Cr Trade Debtor

• Dr Invoice

  Cr Sales

The company have setting the provision for doubtful debt because have credit sales. What is the suitable rate?

• one percent

• five percent

• ten percent

• fifteen percent