Audit 13 & 14
13-22
a. (2) A test of control.
b. (2) Relative effectiveness and efficiency of the tests.
c. (1) Substantive tests.
d. (4) IV, I, III, and II 13-23
a. (2) Tests of controls include observations of the proper segregation of duties.
b. (3) Tests of controls.
c. (1) A reasonable degree of assurance that the client’s internal controls are operating effectively on a consistent basis throughout the year.
d. (3) Reperformance.
13-24
1. Foot the accounts payable trial balance and compare the total with the general ledger.
a. Test of details of balances
b. Reconciliation
2. Confirm accounts payable balances directly with vendors.
a. Test of details of balances
b. Confirmation
3. Account for a sequence of checks in the cash disbursements journal to determine whether any have been omitted.
a. Test of control
b. Documentation
4. Examine vendor’s invoices to verify the ending balance in accounts payable.
a. Test of details of balances
b. Documentation
5. Compare the balance in payroll tax expense with previous years. The comparison takes the increase in payroll tax rates into account.
a. Analytical procedure
b. Analytical procedures
6. Examine the internal auditor’s initials on monthly bank reconciliations as an indication of whether they have been reviewed.
a. Test of control
b. Documentation
7. Examine vendors’ invoices and other documentation in support of recorded transactions in the acquisitions journal.
a. Substantive test of transactions
b. Documentation
8. Multiply the commission rate by total sales and compare the result with commission expense.
a. Analytical procedure
b. Analytical procedures
9. Examine vendors’ invoices and other supporting documents to determine whether large amounts in the repair and maintenance account should be capitalized.
a. Test of details of balances
b. Documentation
10. Discuss the duties of the cash disbursements clerk with him and observe whether he has responsibility for handling cash or
a. (2) A test of control.
b. (2) Relative effectiveness and efficiency of the tests.
c. (1) Substantive tests.
d. (4) IV, I, III, and II 13-23
a. (2) Tests of controls include observations of the proper segregation of duties.
b. (3) Tests of controls.
c. (1) A reasonable degree of assurance that the client’s internal controls are operating effectively on a consistent basis throughout the year.
d. (3) Reperformance.
13-24
1. Foot the accounts payable trial balance and compare the total with the general ledger.
a. Test of details of balances
b. Reconciliation
2. Confirm accounts payable balances directly with vendors.
a. Test of details of balances
b. Confirmation
3. Account for a sequence of checks in the cash disbursements journal to determine whether any have been omitted.
a. Test of control
b. Documentation
4. Examine vendor’s invoices to verify the ending balance in accounts payable.
a. Test of details of balances
b. Documentation
5. Compare the balance in payroll tax expense with previous years. The comparison takes the increase in payroll tax rates into account.
a. Analytical procedure
b. Analytical procedures
6. Examine the internal auditor’s initials on monthly bank reconciliations as an indication of whether they have been reviewed.
a. Test of control
b. Documentation
7. Examine vendors’ invoices and other documentation in support of recorded transactions in the acquisitions journal.
a. Substantive test of transactions
b. Documentation
8. Multiply the commission rate by total sales and compare the result with commission expense.
a. Analytical procedure
b. Analytical procedures
9. Examine vendors’ invoices and other supporting documents to determine whether large amounts in the repair and maintenance account should be capitalized.
a. Test of details of balances
b. Documentation
10. Discuss the duties of the cash disbursements clerk with him and observe whether he has responsibility for handling cash or