An auditor wishes to perform tests of controls on a client's cash disbursements relating to accounts payable. If the control procedures leave no audit trail of documentary evidence, the auditor most likely will test the procedures by:
A. Observation and inquiry.
B. Confirmation and observation.
C. Inquiry and analytical procedures.
D. Analytical procedures and confirmation.
Answer: A
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Exhibit 22-4 Barbara Company's year-end December 31, 2016, financial statements contained the following errors: ? · Ending inventory on December 31, 2016, was overstated by $75,000. · Depreciation expense was understated by $7,000. · A two-year insurance policy for 2016 and 2017 in the amount of $14,000 was entirely expensed in 2016. · Investments in common stock of other companies were
sold in 2016 at a gain of $10,000, but the sale was not recorded until 2017. ? Refer to Exhibit 22-4. What is the effect of the above errors on 2016 net income? A) Net income is understated by $65,000. B) Net income is overstated by $92,000. C) Net income is overstated by $58,000. D) Net income is overstated by $65,000.
Determining if pricing strategies are producing desired results falls under which stage of the management process?
A) Planning B) Performing C) Evaluating D) Communicating
Defining an organization’s objectives and aligning goals with organizational objectives are two stages of management by objectives.
a. True b. False
The buyer for an electronics store is bribed by a supplier to order more of the brand sold by the supplier. This action violates which of the agent's duties?
a. notify b. account c. loyalty d. indemnity e. all of the other choices