liability accounts Archives

Which analytical procedures are most important in verifying notes payable? Which types of misstatements can the auditor uncover by the use of these tests?

Posted on February 19, 2023 by Assessments

List four examples of interest-bearing liability accounts commonly found in balance sheets. What characteristics do these liabilities have in common? How do they differ? 22-2 (OBJECTIVE 22-2) It is common practice to audit the balance in notes payable in conjunction with the audit of interest expense and interest payable. Explain the advantages of this approach. […]

Why is it more important to search for unrecorded notes payable than for unrecorded notes receivable? Suggest audit procedures that the auditor can use to uncover unrecorded notes payable.

Posted on February 18, 2023 by Assessments

List four examples of interest-bearing liability accounts commonly found in balance sheets. What characteristics do these liabilities have in common? How do they differ? 22-2 (OBJECTIVE 22-2) It is common practice to audit the balance in notes payable in conjunction with the audit of interest expense and interest payable. Explain the advantages of this approach. […]

Identify (1) those steps that are tests of controls or substantive tests of transactions and (2) those that are tests of details of balances.

Posted on February 18, 2023 by Assessments

The following are steps in the methodology for designing tests of controls, substantive tests of transactions, and tests of details of balances for the payroll and personnel cycle: 1. Design tests of details of balances for the payroll and personnel cycle. 2. Evaluate whether control risk can be assessed as low for payroll. 3. Design […]

Distinguish between a vendor’s invoice and a vendor’s statement. Which document should ideally be used as evidence in auditing acquisition transactions and which is best when verifying accounts payable balances? Why?

Posted on February 15, 2023 by Assessments

List five asset accounts, three liability accounts, and five expense accounts included in the acquisition and payment cycle for a typical manufacturing company. Distinguish between a vendor’s invoice and a vendor’s statement. Which document should ideally be used as evidence in auditing acquisition transactions and which is best when verifying accounts payable balances? Why? If […]

Identify (1) those steps that are tests of controls or substantive tests of transactions and (2) those that are tests of details of balances.

Posted on February 15, 2023 by Assessments

The following are steps in the methodology for designing tests of controls, substantive tests of transactions, and tests of details of balances for the payroll and personnel cycle: 1. Design tests of details of balances for the payroll and personnel cycle. 2. Evaluate whether control risk can be assessed as low for payroll. 3. Design […]

What is the importance of cash discounts to the client and how can the auditor verify whether they are being taken in accordance with company policy?

Posted on February 15, 2023 by Assessments

List five asset accounts, three liability accounts, and five expense accounts included in the acquisition and payment cycle for a typical manufacturing company. 18-2 (OBJECTIVES 18-2, 18-7) Distinguish between a vendor’s invoice and a vendor’s state- ment. Which document should ideally be used as evidence in auditing acquisition transactions and which is best when verifying […]

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Tag: liability accounts

Which analytical procedures are most important in verifying notes payable? Which types of misstatements can the auditor uncover by the use of these tests?

Why is it more important to search for unrecorded notes payable than for unrecorded notes receivable? Suggest audit procedures that the auditor can use to uncover unrecorded notes payable.

Identify (1) those steps that are tests of controls or substantive tests of transactions and (2) those that are tests of details of balances.

Distinguish between a vendor’s invoice and a vendor’s statement. Which document should ideally be used as evidence in auditing acquisition transactions and which is best when verifying accounts payable balances? Why?

Identify (1) those steps that are tests of controls or substantive tests of transactions and (2) those that are tests of details of balances.

What is the importance of cash discounts to the client and how can the auditor verify whether they are being taken in accordance with company policy?