For Each of the Following Audit Procedures,state and Describe the Type

question 84

Essay

For each of the following audit procedures,state and describe the type of audit evidence,state the audit assertion that it applies to,and describe the reliability of the evidence (with reasons).
A)Watch staff scan products and enter cash received.
B)Reconcile daily cash drawer receipts (cash,debit card sales,credit card sales)with daily sales for one week.
C)Calculate daily gross profit and gross profit by product line.
D)Account for a sequence of sales documents.

• A)Watch staff scan products and enter cash received.
• B)Reconcile daily cash drawer receipts (cash,debit card sales,credit card sales)with daily sales for one week.
• C)Calculate daily gross profit and gross profit by product line.
• D)Account for a sequence of sales documents.

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Definitions:

Acquiring Assets

The process of obtaining ownership or control of assets, which can include tangible property like real estate or intangible property like intellectual property rights.

Dissenting Shareholder Rights

Rights granted to shareholders who disagree with major corporate actions, like mergers, allowing them to receive payment for the fair value of their shares.

Merger Approval

The authorization granted by a regulatory body or shareholders for two or more companies to consolidate into one entity.

Block Merger

A strategy in business consolidation where two or more companies with similar operations merge to create a larger entity.