KIỂM 1-CHAPP 14

1. The overall objective in the audit of the sales and collection cycle is to evaluate whether the account balances affected by the cycle are fairly presented in accordance with accounting standards.

• True

  
  

• False

  
  

2. A ________ indicates a reduction in the amount due from a customer because of returned goods or an allowance.

• A) bill of lading

  
  

• B) sales invoice

• C) credit memo

  
  

• D) monthly statement

  
  

3. The accurate recording of sales transactions concerns all of the following except for

• A) proper credit authorization.

  
  

• B) shipping the amount of goods ordered.

  
  

• C) accurately billing for the amount of goods shipped.

• D) accurately recording the amount billed in the accounting records.

  
  

4. The most significant effect of the results of the tests of controls and substantive tests of transactions in the sales and collection cycle is on

• A) bad debt expense.

  
  

• B) the analytical tests to be performed.

  
  

• C) the confirmation of accounts receivable.

• D) the impact of processing cash receipts.

  
  

5. In many audits, no substantive tests of transactions are made for the ________ assertion on the grounds that understatement of sales is not a concern.

• A) accuracy

  
  

• B) existence

  
  

• C) completeness

  
  

• D) none of the above

  
  

 6. A ________ is a document for communicating the description, quantity, and related information for goods ordered by a customer.

• A) sales order

  
  

• B) customer order

  
  

• C) vendor invoice

  
  

• D) sales invoice

  
  

7. An audit procedure that compares the name, amount, and dates shown on remittance advices with cash receipts journal entries and with related duplicate deposit slips would be effective in detecting

• A) kiting.

  
  

• B) lapping.

• C) unauthorized write-offs of customers as uncollectible accounts.

  
  

• D) sales without proper credit authorization.

  
  

8. When an employee who is authorized to make customer entries in the accounts receivable subsidiary ledger purposefully enters cash received into the wrong customer's account that employee may be suspected of

• A) kiting.

  
  

• B) lapping.

  
  

• C) floating.

  
  

• D) shorting.

  
  

9. Which of the following tests of controls is useful to test the transaction-related audit objective of posting and summarization?

• A) Observe whether monthly statements are sent.

  
  

• B) Observe unrecorded cash at a point in time.

  
  

• C) Observe whether the accountant reconciles the bank account.

  
  

• D) Observe endorsement of incoming checks.

  
  

10. The document that accompanies the customer's payment is the

• A) credit memo.

  
  

• B) remittance advice.

  
  

• C) vendor invoice.

  
  

• D) monthly statement.