bank reconciliation is properly prepared by the accountant and reviewed by the controller as evidenced by their respective sign-offs . Which of the following types of audit procedures do these actions illustrate ?
• Question 41 Which of the following best represents a key control for ensuring sales are properly authorized when assessing control risks for sales ?
• Question 42 An auditor who uses a transaction cycle approach to assessing control risk most likely would test control activities related to transactions involving the sale of goods to customers with the
• Question 43 To determine whether internal control relative to the revenue cycle of a wholesaling entity is operating effectively in minimizing the failure to prepare sales invoices , an auditor most likely would select a sample of transactions from the population represented by the
• Question 44 For effective internal control , the billing function should be performed by the
• Question 45 At which point in an ordinary sales transaction of a wholesaling business would a lack of specific authorization be of least concern to the auditor in the conduct of an audit ?
• Question 46 Which of the following fraudulent activities most likely could be perpetrated due to the lack of effective internal control in the revenue cycle ?
• Question 47 To verify that all sales transactions for which shipment has occurred have been recorded , a test of transactions should be completed on a representative sample drawn from
• Question 48 After testing a client ’ s internal control activities , an auditor discovers a number of significant deficiencies in the operation of a client ’ s internal control . Under these circumstances the auditor most likely would
• Question 49 Which of the following is true regarding significant deficiencies ?
• Question 50 During the audit the independent auditor identified the existence of a significant deficiency in the client ’ s internal control and