If an auditor undertakes a test which involves them reviewing the cash receipts during the month immediately following the balance date, what assertion are they likely trying to test? a. Classification b. Cut-off c. Existence d. Accuracy

Cutoff tests designed to detect credit sales made before the end of the year that have been recorded in the subsequent year provide assurance about management's assertion ofSelect one:a.presentationb.rightsc.completenessd.existence

Assertions used by the auditor to consider the different types of potential misstatements that may occur are only assertions about classes of transactions and events for the period under audit.Select one:TrueFalse

Which of the following are tests undertaken in confirming assertions relevant to sales? A. Review the bank reconciliation B. None of these are relevent tests. C. Consider the incentives provided to management D. Compare sales to current year's budget

ABC Co. has significant information that is transmitted, processed, maintained, and accessed electronically. The auditor has concluded that it is not possible to reduce detection risk to an acceptable level by performing only substantive tests for a number of financial statement assertions. The auditor's alternative strategy is toSelect one:a.Require management to change its information system to provide appropriate evidence.b.Perform tests of controls to gather evidential matter to use in assessing control risk related to those assertions.c.Focus audit tests on other assertions for which substantive tests prove to be effective.d.Increase the acceptable audit risk.

The trial balance can help in detecting errors. Identify which of the following errors would be detected at the point of extracting a trial balance. 1-The bookkeeper enters cash received of Sh 50,000 from Peter Jones as a debit in the cashbook but enters the credit of Sh 50,000 in the ledger account of Roger Jones. 2-The bookkeeper enters a cash sale as a credit of Sh 4,000 in the cash book and as a debit of Sh 4,000 in the sales account. 3-The bookkeeper omits a cash sale of Sh 23,000 from the cash book and from the sales accounts. 4-The bookkeeper enters a cash sale as a debit of Sh 49,000 in the cash book and as a credit of Sh 94,000 in the sales account Choose: not possible to tell; will not be detected, trial balance will still agree; will be detected by the trial balance not agreeing; may or may not be detected