For which of the following audit tests would an auditor most likely use attribute sampling? Making an independent estimate of the amount of FIFO Inventory. Examining invoices in support of the valuation of fixed asset additions. Selecting accounts receivable for confirmation of account balances

For which of the following audit tests would an auditor most likely use attribute sampling? Making an independent estimate of the amount of FIFO Inventory. Examining invoices in support of the valuation of fixed asset additions. Selecting accounts receivable for confirmation of account balances

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter13: Auditing Debt, Equity, And Long-term Liabilities Requiring Management Estimates

Section: Chapter Questions

Problem 36CYBK

See similar textbooks

Related questions

Q: Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two…

A: Income statement is the financial statement that records the revenue and expenses of the business…

Q: Shown as follows are the amounts from the stockholders' equity section of the balance sheets of…

A: Stockholders equity is the amount invested by the owner's of the business and the retained earnings.…

Q: Haynes, Inc., obtained 100 percent of Turner Company’s common stock on January 1, 2020, by issuing…

A: Dividends seem to be corporate profits that have been transferred to the shareholders. Dividend…

Q: Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and…

A: Manufacturing costs refers to the cost incurred in the factory for the production of goods. Thus,…

Q: You are a Pickup c. acquired 78% of the outstanding voting common stock of Taken Inc. on January 1,…

A: Revenue is the entire amount of money made through the sale of products or services related to a…

Q: In Auditing, which aspect is riskier, Completeness, or Existence?

A: Assertions in Auditing - Assertinos in Audit are the representations made by the members of…

Q: identify steps in reporting for foreign operations including sustainabity repirt

A: 1. Collect and Organise Data: Gather information related to foreign operations, including economic,…

Q: All of the following are examples of assurance services except: a. Financial engagement. b.…

A: Assurance services are a type of independent professional service usually provided by certified or…

Q: Lopez, Cruz, and Perez are partners and share net income and loss in a 6:4:1 ratio (in ratio form:…

A: A journal entry is an act of maintaining or producing records of any economic or non-economic…

Q: Metallica Bearings, Incorporated, is a young startup company. No dividends will be paid on the stock…

A: A share price is the price of a single share of a number of saleable equity shares of a company. In…

Q: At the beginning of the year, Cullumber Company had total assets of $732,000 and total liabilities…

A: Total assets refer to the addition of the owner’s equity and the total liabilities. It describes…

Q: On January 1, Year 1, Milton Manufacturing Company purchased equipment with a list price of $38,000.…

A: The units-of-production depreciation method assigns an equal amount of depreciation to each unit of…

Q: value of closing inventory to be reported

A: Inventory valuation and recording has an important role in preparing financial statements. A single…

Q: Below are the account balances for Cowboy Law Firm at the end of Decembe Accounts Cash Salaries…

A: Cowboy law firm Income Statement For the period ended December 31 Service Revenue $8200…

Q: 28. During the year, Raul Co. purchased P960,000 of inventory. The cost of goods sold for the year…

A: Cost of goods available for sale means the cost of opening inventory and cost of goods purchased…

Q: The equity of Pango Pango Oil Extraction and Refining Company Limited at 30 June 2023 consisted of…

A: Stockholders' equity are the owner portion in the business, it shows the amount that equity and…

Q: On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $83,660…

A: An income statement, often known as a profit and loss account, is a financial statement that…

Q: Jacob Company purchased 75 Isaac Company 8%, 10-year, $1,000 bonds on January 1, 2020, for $75,000.…

Q: Suppose that inventory at the beginning of the year consists of 5 units of WIDGET01, costing $33.00…

A: INVENTORY VALUATION Inventory Valuation is a Method of Calculation of Value of Inventory at the End…

Q: Sandra's Styling Salon, a Sole Proprietorship, pays weekly salaries of $5,000 each Friday for a…

A: Payroll expenses refer to amounts paid to the staff of the company which includes all the…

Q: [The following information applies to the questions displayed below.] On December 1, Jasmin Ernst…

A: Retained earnings are the unallocated profits available for distribution to the shareholders. It is…

Q: Pumpworks has 1,100 shares of its $30 par value shares outstanding on January 1, 20X3, and Seaworthy…

A: A company’s balance sheet contains the stockholders’ equity section to provide information on the…

Q: Alan Weatherspoon, a super salesman contemplating retirement on his fifty-fifth birthday, decides to…

A: When someone wants to determine the present value of his/her funds or contributions with the given…

Q: Christina, who is single, purchased 320 shares of Apple Incorporated stock several years ago for…

A: Buyback of sarees refers to a situation when a company repurchased its outstanding shares for…

Q: Company makes final call of 25c per share on 500 000 shares issued at $1. Holders of 20 000 shares…

A: Forfeiture and Reissue of shares When any shareowner defaults in making the payments being called…

Q: Accounts Receivable Analysis The following data are taken from the financial statements of Basinger…

A: The account receivables turnover ratio is calculated as net sales divided by average account…

Q: Example 3. Accounting for Cash Dividends A company declares and pays an interim dividend of $50 000…

A: Cash Dividend - Cash Dividend is the percent of profit earned by the entity to be given to…

Q: You are the plant accountant for a company that makes a popular brand of basketball shoes.…

A: Break even point is the point of sale where no profit no loss situation. At this point profit would…

Q: Marc, a single taxpayer, earns $60,800 in taxable income and $5,080 in interest from an investment…

A: The income of an individual or a corporation that is used in determining the tax liability is known…

Q: Example 2. Oversubscription of Ordinary Share Issue ABC issued a prospectus for 100,000 $5 shares on…

A: Lets understand the basics. Journal entry is required to make to record event and transaction that…

Q: Returns to suppliers and returns to storeroom are entered as negative in the stock cards under…

A: Store ledger is the inventory record keeping book which is usually prepared by the cost accountant…

Q: On January 6, Year 1, Mount Jackson Corporation purchased a tract of land for a factory site for…

A: A capitalized cost is an expense added to the cost basis of a fixed asset on a company's balance…

Q: Question 1 The following trial balance had ben been extracted from the book of Shen You for the…

A: Financial statement are the statement that are prepared for the purpose of ascertaining how well a…

Q: 7. Mac Valent deposited. his paycheck for $209.81. The check register be]ow shows his transactions…

A: Paycheck refers to the number of wages or the salary which is paid net of amount to the employees.…

Q: Assume that you are the president of Highlight Construction Company. At the end of the first year of…

A: Income statement is a summary of a business's revenues and expenses over a particular period of…

Q: During this year, Weaver sold some equipment for $18 that had cost $30 and on which there was…

A: A cash flow statement is a financial document that shows the inflow and outflow of cash for a…

Q: The £15 coupon bond pays a coupon of 4% per year, paid semi-annually. It has 2 years to maturity. If…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Financial Statement Analysis tells you if your company is on the right track. Are you growing,…

A: Financial statement analysis - is the analysis of the financial statements of the organization to…

Q: Income Statement Stmt of Changes in Balance Sheet Statement of Cash Flows Stkholders Eq Prepare the…

A: STATEMENT OF SHAREHOLDERS EQUITY Statement of Shareholders Equity is also Known as Changes in…

Q: In an ownership dispute of a manufacturing accountant is engaged by the minority shareholders to…

A: The forensic accountant will look for signs of earnings management by the majority shareholders…

Q: How often do you receive statements from the bank? every day every month every two weeks every week

A: Since you have posted two questions, we will do the first one for you. Please post the other…

Q: Super Bike Manufacturing Company presents the following data for year 2022: Opening inventory: 0…

A: To keep track of all costs associated with creating a certain product, "absorption costing," also…

Q: Costs re

A: Relevant cost is essentially avoidable costs that are incurred only when making particular business…

Q: V. The accounts listed below are taken from the adjusted records of Life Goes On Company as of…

A: The account form balance sheet is a financial statement format where the assets are reported on the…

Q: Required: 1. Using the direct method, adjust the company's income statement for this year to a cash…

A: Cash flow statement is prepared by companies to know the exact cash position as on a particular…

Q: 10. A RM200 petty cash fund has cash of RM20 and receipts of RM170. The journal entry to replenish…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: Which of the following is the major purpose of performing analytical procedures in internal audits?…

A: Internal auditing is an independent, objective assurance and consulting activity designed to add…

Q: Balance Sheet as at December Current Assets Cash Accounts Receivable Inventory Total Current Assets…

A: Cash Flow statement - a statement that depicts the cash inflows and cash outflows of the entity in…

Q: ABC co. is a Canadian controlled private corporation that acquired 100% of the shares of XYZ Co. in…

A: Introduction Dividends are a type of revenue that investors in firms receive for each share of stock…

Q: When Mary Potts arrived at her store on the morning of January 29, she found empty shelves and…

A: As per the gross profit method, the ending inventory can be calculated by deducting the cost of…

Question

100%

For which of the following audit tests would an auditor most likely use attribute sampling?

Making an independent estimate of the amount of FIFO Inventory.
Examining invoices in support of the valuation of fixed asset additions.
Selecting accounts receivable for confirmation of account balances
Inspecting employee time cards for proper approval by supervisors.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

For which of the following tests would an auditor most likely use attribute sampling?(1) Selecting accounts receivable for confirmation of account balances.(2) Inspecting employee time cards for proper approval by supervisors.(3) Making an independent estimate of the amount of a LIFO inventory.(4) Examining invoices in support of the valuation of fixed asset additions.
An auditor reviews aged accounts receivable to assess likelihood of collection to support management’s assertion about account balances of: Select one: a. rights and obligations b. existence. c. valuation and allocation d. completeness
In order to determine whether accounts payable are understated, auditors wish to obtain a sample of purchase transactions from suppliers and how they were recorded in the accounting books. � , sampling is the best mechanism to obtain this type of samples. a . discovery b . attributes c . random digits d . variables
In which of the following circumstances would the audit team most likely use attributes sampling?a. Selecting customer accounts receivable for confirmation.b. Selecting inventory items for verification of physical quantities.c. Selecting purchase orders for indication of proper authorization.d. Selecting additions to property, plant, and equipment during the year.
When auditing the accounts receivable account on the balance sheet, an auditor’s procedures most likely would focus primarily on management’s assertion of Select one: a. Presentation and disclosure b. Existence c. Rights and obligations d. Completeness.
In determining whether transactions have been recorded, the direction of the audit testing should be from the: A. General ledger balances B. Adjusted trial balance C. Original source documents D. General journal entries
To allocate the preliminary estimate of materiality to the accounts, the auditor might consider A. The relative variability of the accounts. B.The size, in absolute terms, of each account. C.Using the audit risk equation to calculate the amount of materiality to each account. D.Adjusting detection risk for each account to arrive at consistent materiality amounts across accounts.
When auditing the accounts receivable account on the balance sheet, an auditor’s proceduresmost likely would focus primarily on management’s assertion of
Auditors try to identify predictable relationships when using analytical procedures. Relationshiipss involvingtransactions fromwhich of the following accounts most likely would yield the highest level of evidence? a. accounts receivable b. interest expense c. accounts payable d. Travel and entertainment expense
Auditors try to identify predictable relationships when using analytical procedures. Relationships involving transactions from which of the following accounts would most likely yield the highest level of evidence? a. Accounts receivable. O b. Interest expense. O c. Travel and entertainment expense. O d. Accounts payable.
Which of the following types of audit evidence generally is the most reliable? A. Inquiries made of management B. confirmation of account information C. analytical procedures D. review the prior-year audit process
Which of the following risk types increase when an auditor performs substantive analytical audit procedures for financial statement accounts at an interim date?a. Inherent.b. Control.c. Detection.d. Sampling.