Scribd
Upload
17 views1 page

A&a Set 1.3

The document discusses various aspects of auditing, including access to information, final audit procedures, and the importance of organizational independence in processing customer orders. It presents multiple-choice questions related to audit evidence, segregation of duties, and inventory valuation assertions. The focus is on identifying proper practices and procedures in the context of financial statement preparation and auditing.

Uploaded by

ameliabenjamin1001
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
17 views1 page

A&a Set 1.3

The document discusses various aspects of auditing, including access to information, final audit procedures, and the importance of organizational independence in processing customer orders. It presents multiple-choice questions related to audit evidence, segregation of duties, and inventory valuation assertions. The focus is on identifying proper practices and procedures in the context of financial statement preparation and auditing.

Uploaded by

ameliabenjamin1001
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 1

b) Access to all information of which management and where appropriate, those charged with

governance are aware that is relevant to the preparation of financial statements

c) Unrestricted access to the persons within the entity from whom the auditor determines it
necessary to obtain audit evidence.

d) All of these.

Q5: Final audit takes place after the year end and focuses on the remaining tests and areas
that pose significant risk of material misstatement. Final audit involves concentration on the
following matters, EXCEPT:

a) obtaining evidence that the controls tested at the interim audit have continued to operate during
the period since it took place.

b) attendance at perpetual inventory counts.

c) year end journals which may include adjustments to the transactions tested at the interim audit.

d) Statement of financial position balances.

Q6: Organizational independence is required in the processing of customer’s orders in order


maintain an internal control structure. Which one of the following situations is not a proper
segregation of duties in the processing of orders from customers.

a) Approval of a sales credit memo because of a product return by the sales department with
subsequent posting to the customer’s account by the account receivable department.

b) Invoice preparation by the billing department and posting to customer’s account by the account
receivables department.

c) Approval by credit department of a sales order prepared by the sales department.

d) Shipping of goods by the shipping department that have been retrieved from stock by the
finished goods storeroom department

Q7: Which one of the following audit procedures below is not appropriate in auditing the
valuation assertion for company’s inventory.

a) Access the reasonableness of the management’s point estimate of realizable value of


inventory that has not yet been sold by reviewing sales before the year end and comparing
the values with inventory that has been sold since the year end.

b) For a sample of inventory sold just before and just after the year end, match date of sales
invoices/date posted to ledgers with date on related goods dispatch note.

You might also like