KIỂM 1 CHAP 16-1

Which of the following audit procedures would not likely detect a client's decision to pledge or factor accounts receivable?

• a review of the minutes of the board of directors' meetings

• discussions with the client

• confirmation of receivables

• examination of correspondence files

For most audits, a proper cash receipts cutoff is less important than the sales cutoff because the improper cutoff of cash

• is detected and correct when cash is separately audited.

• is unlikely to have a material impact on the balance sheet or the income statement.

• affects items on the balance sheet but does not affect net income.

• rarely occurs given the control consciousness of most entities.

The understatement of sales and accounts receivable is best uncovered by

• A) testing internal controls.

• B) testing the aged accounts receivable trial balance.

• C) substantive tests of transactions for shipments made but not recorded.

• D) substantive tests of transactions for bad debts.

A listing of the balances in the accounts receivable master file at the balance sheet date, including individual customer balances outstanding and a breakdown of each balance by the time passed between the date of the sale and the balance sheet date, is the

• customer list

• aged trial balance

• accounts receivable ledger

• schedule of accounts receivable

Which of the following is likely to be determined first when performing tests of details for accounts receivable?

• Recorded accounts receivable exist.

• Accounts receivable in the aged trial balance agree with related master file amounts, and the total is correctly added and agrees with the general ledger.

• The client has a right to the accounts receivable.

• Existing accounts receivable are included.

When designing tests of details of balances, an important point to remember is

• auditors emphasize income statement accounts.

• the audit procedures selected depends heavily on whether planned evidence for a given objective is low, medium, or high.

• if accounts receivable are overstated, then sales will be understated.

• sales cutoff is the most important test of details of accounts receivable.

If material, all of the following are required to be separately disclosed in the financial statements except for

• accounts receivable from officers.

• accounts receivable from affiliates.

• sales and assets for different business segments.

• sales for the last ten days of the fiscal year.

Because of its central role in auditing of accounts receivable, which of the following would normally be one of the first items tested?

• accounts receivable master file

• customer file

• aged trial balance

• sales register

Tests of which balance-related audit objective are normally performed first in an audit of the sales and collection?

• accuracy

• completeness

• rights

• detail tie-in

Confirmation of accounts receivable selected from the trial balance is the most common test of details of balances for the ________ of accounts receivable.

• presentation

• valuation

• accuracy.

• detail tie-in