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WorksheetsAudit Chapter 3 (Subtopic 3.4)
Total questions: 20
Worksheet time: 11mins
What is the audit assertions for existence valuation of trade receivables ?
Obtain an aging listing of trade receivables balance
Select samples of trade receivable account
Consider write off of bad and and doubtful debts
Amounts and other data relating to recorded transactions
Purpose of auditing trade receivables?
Obtain understand of accounting policies
Know the significant types of sale transactions
Consider whether the revenue recognition policy is appropriate
All above
Which assertion will select samples of trade receivable account for confirmation and reconcile differences that arise ?
Existence Occurrence
Valuation Occurrence
Existence Valuation
Valuation
Purpose of auditing trade payables?
To understand of accounting policies relevant trade payable
To consider whether the revenue recognition policy is appropriate
To consider whether the expenditure recognition policy is appropriate
To know the significant type of purchase transaction flowing through the account
Which of the following consider as evidence to trade receivable ?
General ledger
debtors ledger
Bank statement
Receipt book
Trade receivable of existence is to check subsequent payments by trade debtors after year ended
True
False
Trade payable of completeness is consider reclassifying the debit balances to trade receivable
True
False
Which assertion will ensure that trade receivables are properly disclosed in the financial statement?
Existence Occurrence
Valuation Occurrence
Existence Valuation
Classification/Understandability
Which assertion will ensure that trade receivable are recorded in the correct accounting period?
Existence
.Valuation/Cut-off
Completeness/Cut-off
Valuation
Trade payable is not consider and design audit procedure that address relevant presentation and disclosure requirement
True
False
DEFINITION OF TRADE RECEIVABLE.
Trade receivable are due from customers for merchandise sold or services performed in the ordinary course of business.
True
False
Audit procedure for trade payables
i. Existence
ii. Occurrence
iii. Existence
i,ii
i,iii
ii,iii
All above
Choose the correct audit assertion that may suitable for this audit procedure.
Test balances and aging by comparing amounts to suppliers' invoices, statements and creditors ledgers
existence occurrence
valuation
completeness
classification
False statement for audit objectives and assertions for trade payable ?
To ensure that trade payable are properly recorded and genuine
To ascertain whether may repayment
Check subsequent payments by trade debtors after year end
Choose the correct audit assertion that may suitable for this audit procedure.
Carry out a year end cut-off test to determine whether purchases and creditors balances are recorded correctly and accurately in the proper accounting period.
existence
obligations
completeness
classification/ understandability
Types of audit procedure:
i) Observation
ii) inquires of outside parties
iii) examination of documents
iv) physical examination
i,ii
i,iii,iv
iii,iv
All above
The following statement is about the audit procedure of trade payables.
Determine whether sales and debtors balances are recorded correctly and accurately in proper accounting period.
True
False
Suitable audit procedure on trade receivable.
Select sample of debtors for confirmation differences that arise and check subsequent payment to creditors after year end.
True
False
The purpose of auditing the trade payables is to identify debtor account
True
False
The basis sources of evidence are :
Debit Note
Credit Note
Sales Receipt
All above
