Identify whether the following tests are tests of controls, substantive analytical procedures, tests of details of transactions, or tests of details of account balances:
1) Select a sample of customer receivables and send positive confirmations to each customer.
2) Examine monthly bank reconciliations for the internal auditors' initials indicating internal verification and review of the reconciliation.
3) Select a sample of entries in the sales journal and trace each to the shipping documents.
4) Compute receivable turnover and compare with previous years.
5) For a sample of new customers, determine whether credit approval was properly administered and documented.
6) Compare the dates on a sample of sales invoices with the dates of shipment and the dates the transactions were recorded in the sales journal.
1) Tests of details of account balances
2) Tests of controls
3) Tests of details of transactions
4) Substantive analytical procedures
5) Tests of controls
6) Tests of details of transactions
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The Bosteins
Karen and her husband, Jeffrey, are facing a new income tax situation this year. She is a corporate accountant and Jeffrey is an engineer. Their gross salaries total $89,000. Both graduated from four-year universities five years ago and are still paying off large student loans. She is now attending school part-time to prepare for the CPA exam. incurred considerable expenses in the process of adopting an infant this year, and they have the ongoing expense of daycare. In January of last year they closed on their new home. Although trained as an accountant, Karen's work has not involved income tax preparation. Help them consider the following questions. A) have no dependents to declare. B) should use the married filing separately filing status. C) should calculate their taxes itemizing and taking the standard deduction to see which is greater. D) none of the above.
Scienter is:
a. the intent to defraud b. the intent to befriend c. the lack of intent to defraud d. the ability to defraud e. none of the other choices are correct