Which of the following procedures would an auditor most likely perform prior to the balance sheet date? B. Review detail and test significant travel and entertainment expenses. Show
C. Perform search for unrecorded liabilities. D. Send inquiry letter to client’s legal counsel. Which of the following procedures would an auditor most likely perform in searching for unrecorded payables? A. Reconcile receiving reports with related cash payments made just prior to year end B. Contrast the ratio of accounts payable to purchases with the prior year's ratio. C. Vouch a sample of creditor balances to supporting invoices, receiving reports, and purchase orders. D. Compare cash payments occurring after the balance sheet date with the accounts payable trial balancePosted by Prasanna | 406 days ago | Finance Answer (D) is correct . Observance of cutoff procedures helps ensure that liabilities were recorded in the appropriate period. Tracing cash disbursements made subsequent to year end to amounts recorded at year end may disclose liabilities that were unrecorded as a result of a failure to observe such procedures. Recomputation of interest, bank confirmations, and reading the minutes of directors' meetings may also detect unrecorded liabilities Ramakrishna | 406 days ago B.Compare the latest available interim financial information with the financial statements beingreported upon.C.Applyanalytical procedures to the details of the balance sheet accounts that were tested at interimdates.D.Inquireabout payroll checksthat were recorded before the year end but cashed after the year end.13.A "proof of cash" used by an auditor Get answer to your question and much more 14.To achieve audit efficiency and effectiveness with a personal computer, the crucial requirements areselectingbythe Get answer to your question and much more 15.Which of the following conditions most likely would pose the greatest risk in accepting a new auditengagement? Get answer to your question and much more 16.A client decides not to make an auditor's proposed adjustments that collectively are not material, andwants the auditor to issue the report based on the unadjusted numbers. Which of the followingstatements is correct regarding the financial statement presentation?A.The financial statements are free from materialmisstatement,and no disclosureis required innotes to the financial statements.B.The financial statements do not conform with the requirements of the PFRS.C.The financial statements contain unadjustedmisstatements that should result in a qualified opinion.D.The financial statements are free from material misstatement, but disclosure of the proposedadjustments is required in the notes tothe financial statements.the Test Prep This preview shows page 70 - 72 out of 99 pages. Which of the following procedures would an auditor most likely perform to obtain evidence about theoccurrence of subsequent events?a. Comparing the financial statements being reported on with those of the prior period.b. Investigating personnel changes in the accounting department occurring after year-end.c. Confirming a sample of material accounts receivable established after year-end.d.Inquiring as to whether any unusual adjustments were made after year-end.ExplanationChoice "d" is correct. An auditor would most likely inquire as to whether any unusual adjustments weremade after year-end that would require adjustment to and/or disclosure in the year-end financialstatements.Choice "c" is incorrect. Obtaining evidence about A/R that were established after year-end would notprovide the auditor with information about subsequent events, since any information about these A/Rwould not require adjustment to or disclosure in the prior year financial statements. Choice "a" is incorrect. Comparing the financial statements being reported on with those of the priorperiod is not a very good source of subsequent event information.Choice "b" is incorrect. Changes in accounting personnel at any time would probably not result in anysubsequent event financial statement adjustment or disclosure.Which of the following events occurring after the issuance of an auditor's report most likely would causethe auditor to make further inquiries about the previously issued financial statements?a. An uninsured natural disaster occurs that may affect the entity's ability to continue as a goingconcern.b.New information is discovered concerning undisclosed lease transactions of the audited period.c. A subsidiary is sold that accounts for 25% of the entity's consolidated net income.d. A contingency is resolved that had been disclosed in the audited financial statements.ExplanationChoice "b" is correct. The question addresses the subsequent discovery of facts that may have existed atthe balance sheet date. Such events will often require an adjustment to the financial statements. Anexample is new information discovered about undisclosed lease transactions of the audited period. As aresult, the auditor should make further inquiry to determine whether the information is reliable andwhether the facts existed at the date of the report.Choice "a" is incorrect. The natural disaster is an example of a subsequent event occurring after the dateof the auditor's report that the auditor has no obligation to investigate.Choice "d" is incorrect. The resolution of a disclosed contingency is an example of a subsequent eventoccurring after the date of the auditor's report that the auditor has no obligation to investigate. Upload your study docs or become a Course Hero member to access this document Upload your study docs or become a Course Hero member to access this document End of preview. Want to read all 99 pages? Upload your study docs or become a Course Hero member to access this document Which of the following procedures would an auditor most likely perform before the balance sheet date quizlet?Which of the following procedures would an auditor most likely perform prior to the balance sheet date? Auditing significant travel and entertainment expenses can be performed at an interim period, applying procedures to transactions occurring between the testing and the end of the period, as appropriate.
Which of the following procedures would the auditor most likely perform to determine that an interest?Which of the following procedures would the auditor most likely perform to determine that an interest rate swap contract is properly stated at fair value on the client's balance sheet? A Testing the data used to arrive at the fair value of the interest rate swap contract.
Which of the following procedures would an auditor most likely perform to obtain evidence about the occurrence of subsequent events?Which of the following procedures will an auditor most likely perform to obtain evidence about the occurrence of subsequent events? Inquiring of the entity's legal counsel concerning litigation, claims, and assessments arising after year end.
Which of the following procedures would an auditor most likely?Which of the following procedures would an auditor most likely perform in planning a financial statement audit? Comparing the financial statements with anticipated results.
|
Which of the following procedures would an auditor most likely perform before the balance sheet date
zusammenhängende Posts
Urheberrechte © © 2024 ketiadaan Inc.
