transactions Archives

In the audit of notes payable, which balance-related audit objective is generally one of the most important for the auditor to verify?

Posted on February 22, 2023 by Assessments

The following multiple choice questions concern interest-bearing liabilities. Choose the best response. a. Which of the following controls will most likely justify a reduced assessed level of control risk for the completeness assertion for notes payable? (1) The accounting staff reviews board of director minutes for any indication of any transactions involving outstanding debt to […]

Design and perform tests of controls, substantive tests of transactions, and tests of details of balances for capital stock and retained earnings.

Posted on February 22, 2023 by Assessments

Audit of Capital Stock and Paid-In Capital Design and perform tests of controls, substantive tests of transactions, and tests ofdetails of balances for capital stock and retained earnings.

Design and perform audit tests of notes payable and related accounts and transactions.

Posted on February 22, 2023 by Assessments

NOTES PAYABLE Design and perform audit tests of notes payable and related accounts and transactions.

State whether the merchandise should be included in the client’s inventory.

Posted on February 22, 2023 by Assessments

In an annual audit at December 31, 2019, you find the following transactions near the closing date: 1. Merchandise costing $625 was received on December 28, 2019, and the invoice was not recorded. You located it in the hands of the purchasing agent; it was marked “on consignment.” 2. A packing case containing products costing […]

Design and perform tests of controls, substantive tests of transactions, and tests of details of balances for capital stock and retained earnings.

Posted on February 19, 2023 by Assessments

AUDIT OF THE CAPITAL ACQUISITION AND REPAYMENT CYCLE Identify the accounts and the unique characteristics of the capital acquisition andrepayment cycle.Design and perform audit tests of notes payable and related accounts and transactions.Identify the primary concerns in the audit of owners’ equity transactions.Design and perform tests of controls, substantive tests of transactions, and tests ofdetails […]

When an auditor observes that the recorded interest expense seems to be excessive in relation to the balance in the bonds payable account, the auditor might suspect that:discount on bonds payable is understated.

Posted on February 18, 2023 by Assessments

The following multiple choice questions concern interest-bearing liabilities. Choose the best response. a. Which of the following controls will most likely justify a reduced assessed level of control risk for the completeness assertion for notes payable? (1) The accounting staff reviews board of director minutes for any indication of any transactions involving outstanding debt to […]

State whether the merchandise should be included in the client’s inventory.

Posted on February 18, 2023 by Assessments

In an annual audit at December 31, 2019, you find the following transactions near the closing date: 1. Merchandise costing $625 was received on December 28, 2019, and the invoice was not recorded. You located it in the hands of the purchasing agent; it was marked “on consignment.” 2. A packing case containing products costing […]

Compute payroll tax expense as a percentage of total wages, salaries, and commissions.

Posted on February 17, 2023 by Assessments

The following audit procedures are typical of those found in auditing the payroll and personnel cycle: 1. Examine owner approval of rates of pay and withholdings. 2. Examine evidence that payroll hours and wage rates are verified by an independent person. 3. Select a sample of 40 entries in the payroll journal and trace each […]

Identify whether each of the procedures is primarily a test of control or a substantive test of transactions.

Posted on February 17, 2023 by Assessments

Following are some of the tests of controls and substantive tests of transactions procedures often performed in the payroll and personnel cycle. 1. Examine the time card for the approval of a supervisor. 2. Recompute hours on the time card and compare the total with the total hours for which the employee has been paid. […]

Identify five general ledger accounts that are likely to be affected by the payroll and personnel cycle in most audits.

Posted on February 17, 2023 by Assessments

Identify five general ledger accounts that are likely to be affected by the payroll and personnel cycle in most audits. 20-2 (OBJECTIVES 20-1, 20-3) Explain the relationship between the payroll and personnel cycle and inventory valuation. 20-3 (OBJECTIVE 20-2) Distinguish among a payroll master file, a W-2 form, and a payroll tax return. Explain the […]

Essay Quoll

Tag: transactions

In the audit of notes payable, which balance-related audit objective is generally one of the most important for the auditor to verify?

Design and perform tests of controls, substantive tests of transactions, and tests of details of balances for capital stock and retained earnings.

Design and perform audit tests of notes payable and related accounts and transactions.

State whether the merchandise should be included in the client’s inventory.

Design and perform tests of controls, substantive tests of transactions, and tests of details of balances for capital stock and retained earnings.

When an auditor observes that the recorded interest expense seems to be excessive in relation to the balance in the bonds payable account, the auditor might suspect that:discount on bonds payable is understated.

State whether the merchandise should be included in the client’s inventory.

Compute payroll tax expense as a percentage of total wages, salaries, and commissions.

Identify whether each of the procedures is primarily a test of control or a substantive test of transactions.

Identify five general ledger accounts that are likely to be affected by the payroll and personnel cycle in most audits.