Below Are Five Audit Procedures, All of Which Are Tests

question 56

Essay

Below are five audit procedures, all of which are tests of balances associated with the audit of accounts receivable. Also below are the eight general balance-related audit objectives and the four management assertions. For each audit procedure, indicate (1) its audit objective, and (2) the management assertion being tested.

1. Obtain an aged listing of accounts receivable. For a sample of individual customers on the listing, agree the customer's name, amount, and other information with the corresponding information in the accounts receivable master file.
(1) ________.
(2) ________.
2. Examine details of sales for five days before and five days after year-end to determine whether sales have been recorded in the proper period.
(1) ________.
(2) ________.
3. Assess the reasonableness of the balance in the allowance for doubtful accounts.
(1) ________.
(2) ________.
4. Inquire as to whether any accounts receivable have been factored or sold during the period.
(1) ________.
(2) ________.
5. Inquire as to whether there are any receivables from related parties.
(1) ________.
(2) ________.

Identify typical onset times and potential complications of nausea and vomiting in pregnancy.

Recommend interventions for common pregnancy-related discomforts such as heartburn, back pain, and sleep disturbances.

Understand common physiological changes during pregnancy and appropriate responses to them.

Conduct essential assessments at every prenatal and postpartum visit.

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Definitions:

Legal Firm

A business that provides legal services and is staffed by lawyers.

Activity-Based Costing

A method of allocating overhead and indirect costs to specific products or projects based on their use of resources.

Activity Rate

The cost driver rate that is used to assign activity costs to products or services based on their consumption of the activity.

Cost Pools

Groups of individual costs combined to allocate costs more efficiently.