Auditing CH 10-12,14

Which procedure is an auditor most likely to use to detect a check outstanding at year-end that was not recorded as outstanding on the year-end bank reconciliation?

Receive a cutoff statement directly from the client's bank.

The use of a "blind" purchase order is designed to prevent errors by the:

Receiving department.

A client might overstate December 31 accounts receivable balances by dating and recording January transactions in December. Such entries recorded in which journal are most likely to achieve this end?

Sales.

The client's physical count of inventories is lower than the inventory quantities in the perpetual records. This could be the result of a failure to record:

Sales.

Which of the following procedures is least likely to be completed before the balance sheet date?

Search for unrecorded liabilities.

Internal control over marketable securities is enhanced when:

Securities are held under joint control of two or more officials.

Which of the following is not confirmed on the standard confirmation form used for cash balances at financial institutions?

Securities held for the client by the financial institution.

In auditing a manufacturing entity, which of the following procedures would an auditor least likely perform to determine whether slow-moving, defective, and obsolete items included in inventory are properly identified?

Tour the manufacturing plant or production facility.

To obtain the best evidence regarding the completeness of recorded accounts receivable, the auditors:

Trace a sample of the bills of lading to sales invoices.

An audit basically consists of having the auditor form an opinion regarding management's financial statement assertions. The auditor therefore develops general and specific procedures to apply to the accounts and transactions. In a particular case, s/he might do this by:

Tracing sales invoices to shipping documents to test the occurrence of reported sales.

Which of the following cash transfers is most likely to result in a misstatement of cash at December 31, 20X7?

Transfer B.

Contact with banks for the purpose of opening company bank accounts should normally be the responsibility of the corporate:

Treasurer.

By preparing a four-column bank reconciliation ("proof of cash") for the last month of the year, an auditor will generally be able to detect:

An unrecorded check written at the beginning of the month which was cashed during the period covered by the reconciliation.

By preparing a four-column bank reconciliation ("proof of cash") at year-end, an auditor will generally be able to detect:

An unrecorded deposit made at the bank at the end of the month.

Which of the following audit procedures is least likely to detect an unrecorded liability?

Analysis and recomputation of depreciation expense.

Which of the following sets of duties would ordinarily be considered basically incompatible in terms of good internal control?

Collection of receipts on account and maintaining accounts receivable records.

Recognizing a loan received as revenue instead of as a liability has a positive effect on the reported financial statements for all of the following except:

It overstates assets.

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:

Collection of receivables.

Your client left the cash receipts journal open after year-end for an extra day and included January 1 cash receipts in the 12/31/XX totals. All of those cash receipts were due to cash sales. Assuming the client uses a periodic inventory system with a 12/31/XX count of the physical inventory, which of the following is most likely to be true relating to the year XX financial statements?

Net income is overstated.

The confirmation process may be performed using a(n):

paper form, electronic form

Which of the following controls would be most likely to reduce the risk of diversion of customer receipts by a company's employees?

A bank lockbox system.

Which of the following best describes a voucher prepared under good internal control?

A document prepared by Accounts Payable authorizing a cash disbursement.

The Parmalat fraud case involved:

A fraudulent cash confirmation.

Which of the following would indicate the need to use positive accounts receivable confirmation requests?

A large number of accounts receivable are in dispute.

By preparing a four-column bank reconciliation ("proof of cash") at year-end, an auditor will generally not be able to detect:

A second payment of an account payable which had already been paid in full two months earlier.

The auditors should insist that a representative of the client be present during the physical examination of securities in order to:

Acknowledge the receipt of securities returned.

What type of error is the CPA most likely to discover when he/she examines all shipping reports dated in January of 20X1, shipped FOB shipping point, which were recorded in December of 20X0 as credit sales?

Accounts receivable are overstated at December 31, 20X0.

To test the existence assertion for recorded receivables, an auditor would select a sample from the:

Accounts receivable subsidiary ledger.

Which of the following best describes the specific accounts payable that are selected for confirmation?

Accounts with a large amount of activity regardless of their balance.

Accrued liabilities generally differ from accounts payable in that accrued liabilities:

Accumulate over time.

Most of the audit work on accounts payable is typically performed:

After the balance sheet date.

Which of the following is most likely to be used in determining a proper amount to be included in the allowance for doubtful accounts?

Aging of accounts receivable.

After the CPAs have selected particular accounts receivable for confirmation:

All requests for confirmation should be mailed in envelopes bearing the CPA firm's return address and should include a return envelope addressed to the CPA firm.

Which of the following is least likely to be an accurate statement concerning characteristics of an audit?

An analysis of inventory turnover addresses whether the proper method of determining inventory costs-as contrasted to market values-is being applied.

Which of the following manipulations would understate receivables on the financial statements?

Closing the sales journal prior to year-end.

Which of the following fraudulent activities most likely could be perpetrated due to the lack of effective internal control over the revenue cycle?

Authorization of credit memos by personnel who receive cash may permit the misappropriation of cash.

Which of the following statements is correct regarding accounts payable and the auditor's procedures?

Because it is generally more difficult to discover a transaction that has not been recorded than to discover one that has been recorded incorrectly, the audit objective of completeness drives many of the substantive procedures applied to these balances.

Tracing copies of sales invoices to shipping documents will provide evidence that all:

Billed sales were shipped.

Which of the following is not one of the criteria for revenue recognition?

Collectibility is certain.

An entity's internal control requires for every check request that there be an approved voucher, supported by a prenumbered purchase order, and a prenumbered receiving report. To determine whether checks are being issued for unauthorized expenditures, an auditor most likely would select for testing from the population of:

Canceled checks.

Which of the following procedures in the cash disbursements cycle should not be performed by the accounts payable department?

Canceling supporting documentation after payment.

An auditor suspects that certain client employees are ordering merchandise for themselves over the Internet without recording the purchase or receipt of the merchandise. When vendors' invoices arrive, one of the employees approves the invoices for payment. After the invoices are paid, the employee destroys the invoices and the related vouchers. In gathering evidence regarding the fraud, the auditor most likely would select items for testing from the file of all:

Cash disbursements.

When an auditor finds a debit to accounts payable, which of the following accounts is most likely to be credited?

Cash.

Banks may process electronic "substitute checks" in place of customer written hard copy checks due to the:

Check Clearing for the 21st Century Act.

On receiving the bank cutoff statement, the auditor should trace:

Checks dated prior to year-end to the outstanding checks listed on the year-end bank reconciliation.

The auditors use a bank cutoff statement to compare:

Checks dated prior to year-end to the outstanding checks listed on the year-end bank reconciliation.

The auditors obtain audit evidence for accounts receivable by using positive or negative confirmation requests. Under which of the following circumstances might the negative form of the accounts receivable confirmation be useful?

Client records include a large number of relatively small balances.

Kiting would least likely be detected by:

Comparing customer remittance advices with recorded disbursements in the cash disbursements journal.

A practical and effective audit procedure for the detection of lapping is:

Comparing recorded cash receipts in detail against items making up the bank deposit as shown on duplicate deposit slips validated by the bank.

Jones was engaged to audit the financial statements of Gamma Corporation for the year ended June 30, 200X. Having completed an examination of the investment securities, which of the following is the best method of verifying the accuracy of recorded dividend income?

Comparing recorded dividends with a standard financial reporting service's record of dividends.

Jones embezzled $10,000 from his company's account in Bank A. At year-end, he hid the shortage by making a deposit on December 31 in Bank A, drawn on Bank B. He has not recorded the transaction on the books. Which of the following is most likely to be effective in detecting this fraud?

Comparison of bank cutoff statement to the cash receipts and disbursements records.

Which of the following is the best audit procedure for the detection of lapping?

Comparison of postings of cash receipts to accounts with the details of cash deposits.

An auditor has accounted for a sequence of inventory tags and is now going to trace information on a representative number of tags to the inventory summary sheets. Which assertion does this procedure relate to most directly?

Completeness.

The assertion most directly addressed when performing the search for unrecorded liabilities is:

Completeness.

Which of the following assertions is of principle concern to the auditors in the examination of accounts payable?

Completeness.

Which of the following statements is not correct?

Confirmation of cash should only be performed as of the balance statement date because the auditor expresses an opinion as of that date.

An inventory turnover analysis is useful to the auditor because it may detect:

The existence of obsolete merchandise.

Which of the following is not true about the confirmation of accounts receivable?

Confirmation requests should be signed by the auditors.

Which procedure would be of most assistance to an auditor discovering a large credit sale that has erroneously been recorded twice?

Confirming accounts receivable.

Which of the following generally provides the least evidence regarding the valuation of the allowance for doubtful accounts?

Confirming current (0-30 day) year-end accounts receivable.

Which of the following is not a procedure that typically is used by the auditors in their examination of a client's goods held in the custody of a public warehouse?

Corresponding with the state agency regarding the authenticity of the public warehouse.

To measure how effectively a client employs its assets, an auditor calculates inventory turnover by dividing the average inventory into:

Cost of goods sold.

The auditors' count of the client's cash should be coordinated to coincide with the:

Count of investment securities.

A receiving department compares inventory items received with copies of purchase orders. The purchase orders list the name of the vendor and do not list the quantities of the material ordered. Using the purchase orders, the receiving department is most likely to detect:

Deliveries for which no purchase order was issued.

The confirmation of accounts receivable is most closely associated with:

Detection risk

The confirmation of accounts payable is most closely associated with:

Detection risk.

Which of the following is not a primary objective of the auditors in the examination of accounts receivable?

Determine the expected day of collection of each of the receivables.

Which of the following is not a part of the auditors' responsibility regarding a client's count of its inventory?

Determine which counts they will make and which counts the client will make.

When a client engages in transactions involving derivatives, the auditor should:

Develop an understanding of the economic substance of each derivative.

Which of the following is not a control over cash disbursements?

Documents supporting the payment of a disbursement should be canceled by the person preparing the check to prevent reuse.

Which of the following revenue related transactions is not linked to the accounts indicated?

Don't write off uncollectible receivables-sales returns, sales discounts.

The audit working papers often include a client-prepared, aged trial balance of accounts receivable as of the balance sheet date. This aging is best used by the auditors to:

Estimate credit losses.

Which of the following procedures for detecting unrecorded transactions at the client's December 31 year-end is least likely to result in discovery of an unrecorded year-end account payable?

Examination of January receiving reports prepared for goods shipped FOB destination in December to the client.

In a manufacturing company which one of the following audit procedures would give the least assurance of the existence of the assets in the general ledger balance of investment in stocks and bonds at the audit date?

Examination of paid checks issued in payment of securities purchased.

Which of the following is a likely procedure to test the adequacy of the allowance for doubtful accounts?

Examine cash receipts received after year-end.

Which of the following tests of controls most likely would help assure an auditor that goods shipped are properly billed?

Examine shipping documents for matching sales invoices.

It is sometimes impossible for the auditors to use normal accounts receivable confirmation procedures. In such situations, the best alternative procedure the auditors might resort to would be:

Examining subsequent receipts of year-end accounts receivable.

Which of the following audit procedures is aimed most directly at testing the completeness assertion for accounts payable?

Examining underlying documentation for cash disbursements in the period after year-end.

Once a CPA has determined that accounts receivable have increased due to slow collections in a "tight money" environment, the CPA would be likely to:

Expand tests of collectibility.

In your review of ABC Company's financials, you note that Receivables have increased approximately 200% from the previous year, while Cash has declined. Further investigation reveals that 70% of ABC's receivables were booked within 7 days of the end of the quarter. If financial statement fraud is involved, which type is most likely?

Fictitious revenues.

Which of the following best describes the reason that the auditors record their inventory test counts in the working papers?

For subsequent comparison with the completed inventory listing.

To gather evidence regarding the balance per bank in a bank reconciliation, an auditor could examine all of the following except:

General ledger.

Purchase cutoff procedures should be designed to test that merchandise is included in the inventory of the client company, if the company:

Holds legal title to the merchandise.

The auditors will usually trace the details of the test counts made during the observation of the physical inventory taking to a final inventory schedule. This audit procedure is undertaken to provide evidence that items physically present and observed by the auditors at the time of the physical inventory count are:

Included in the final inventory schedule.

Which of the following is an auditor least likely to consider a departure from U.S. generally accepted accounting principles?

Including in inventory items that are consigned out to vendors, but not yet sold.

Which of the following is not typically considered to be an alternate procedure for handling nonreplies to accounts receivable confirmation requests?

Inclusion of the information in the engagement letter.

Which of the following is not true about the auditors' verification of notes receivable?

Inspecting the notes is sufficient evidence of existence of the notes.

When scheduling the audit work to be performed on an engagement, the auditors should consider confirming accounts receivable balances at an interim date if:

Internal control over receivables is good.

Your client performed the physical count of inventory as of November 30, one month prior to year-end. Subsequently, your client closed the sales journal on 12/29/XX, two days before year-end, and reported those two days' credit sales in January of the next year. Assuming the client uses a perpetual inventory system, which of the following is most likely to be overstated relating to the year XX financial statements?

Inventory.

For purposes of an audit of financial statements, electronic confirmation of cash balances:

Is acceptable when properly controlled.

Which of the following is correct relating to kiting?

It is more difficult to accomplish in an electronic environment as contrasted to a non-electronic environment.

Jones embezzled $10,000 from his company's account in Bank A. At year-end, he hid the shortage by making a deposit on December 31 in Bank A, drawn on Bank B. He has not recorded the transaction on the books. This is an example of:

Kiting.

The auditor will most likely perform extensive tests for possible understatement of:

Liabilities.

When there are a large number of relatively small account receivable balances, negative confirmation requests may be appropriate if the combination of inherent risk and control risk is:

Low, and the individuals receiving the confirmation requests are likely to give them adequate consideration.

Which of the following is correct concerning "window dressing" for cash?

Many forms of it require no action by the auditors.

The auditors compare information on canceled checks with information contained in the cash disbursement journal. The objective of this test is to determine that:

No discrepancies exist between the data on the checks and the data in the journal.

An auditor should perform alternative procedures to substantiate the existence of accounts receivable when:

No reply to a positive confirmation request is received.

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:

Observation and inquiry.

The most reliable procedure for an auditor to use to test the existence of a client's inventory at an outside location would be to:

Observe physical counts of the inventory items.

Which of the following is not a control that generally is established over cash transactions?

Obtaining a receipt for every disbursement.

Which of the following is an effective control that encourages receiving department personnel to count and inspect all merchandise received?

Quantities ordered are excluded from the receiving department copy of the purchase order.

Tracing recorded sales transactions to the bills of lading provides evidence about the:

Occurrence of sales transactions.

Which of the following does not meet the definition of an external confirmation in the context of accounts receivable?

Oral responses obtained by the auditor through a telephone call.

Auditors may choose not to confirm accounts payable because:

Other reliable external evidence to support the balances is likely to be available.

Which of the following manipulations would understate accounts payable on the financial statements?

Overstating purchase returns.

Purchase cutoff procedures should be designed to test whether all inventory:

Owned by the company was recorded.

Which of the following is least likely to be typically considered to be an alternate procedure for handling nonreplies to accounts receivable confirmation requests?

Physically examine items sold.

Which of the following is one of the better auditing techniques that might be used by an auditor to detect kiting?

Prepare a schedule of bank transfers.

With properly designed internal control, the same employee should not be permitted to:

Prepare disbursement vouchers and sign checks.

A company's decision to use the fair value option for valuation of marketable securities is most likely to affect which of the following assertions the most?

Presentation and Disclosure.

Which of the following is an example of an accrued liability?

Product warranty liability.

To best ascertain that a company has properly included merchandise that it owns in its ending inventory, the auditors should review and test the:

Purchase cutoff procedures.

Internal control over accounts payable is improved when:

Purchase orders show approved prices.

A client's physical count of inventories was higher than the inventory quantities per the perpetual records. This situation could be the result of the failure to record:

Purchases.

A likely analytical procedure to test the accuracy of purchase discounts would be to compute the ratio of cash discounts earned to:

Purchases.

Which of the following would an auditor most likely question included in calculation of the overhead rate for a company that manufactures a product?

Sales expense.

The accuracy of perpetual inventory records may be established, in part, by comparing perpetual inventory records with:

Receiving reports.

Which of the following is a control procedure that is usually applied to accounts payable?

Reconciliation of vendor statements with accounts payable.

A client recorded a payable for a large purchase twice. Which of the following controls would be most likely to detect this error in a timely and efficient manner?

Reconciling vendors' monthly statements with subsidiary payable ledger accounts.

When the auditors select a sample of items from the vouchers payable register for the last month of the period under audit and trace these items to underlying documents, the auditors are gathering evidence primarily in support of the assertion that:

Recorded obligations occurred prior to year-end.

A "bill and hold" scheme is most likely to include:

Recording as sales items that the company retains as of year-end.

After accounting for a sequence of inventory tags, an auditor traces a sample of tags to the physical inventory listing to obtain evidence that all items:

Represented by inventory tags are included in the listing.

The form typically used to confirm accounts payable:

Requires the vendor to indicate the amount of the payable.

Which of the following procedures is least likely to help auditors to assess the adequacy of management's accounting estimate of the allowance for doubtful accounts?

Review accounts which have been written off as uncollectible prior to year-end.

Which of the following is the best control procedure to prevent the payment of an invoice twice?

Review of supporting documentation by the person signing the check.

Which of the following audit procedures is best for identifying unrecorded trade accounts payable?

Reviewing cash disbursements recorded subsequent to the balance sheet date to determine whether the related payable applies to the prior period.

The individual looking for guidance on revenue recognition is most likely to appropriately review:

SAB 104.

Tracing copies of computer-generated sales invoices to copies of the corresponding computer-generated shipping documents provides evidence that:

Sales billed to customers were actually shipped.

For effective internal control, the billing function should not be performed by the:

Sales department.

An internal control questionnaire indicates that an approved receiving report is required to accompany every check request for payment of merchandise. Which of the following procedures provides the greatest assurance that this control is operating effectively?

Select and examine canceled checks and ascertain that the related receiving reports are dated no later than the checks.

An internal control questionnaire indicates that an approved receiving report is required to accompany every check request for payment of merchandise. Which of the following procedures provides the best evidence on operating effectiveness?

Select and examine canceled checks and test whether the related receiving reports are dated no later than the checks.

In October, three months before year-end, the bookkeeper erroneously recorded the receipt of a one year bank loan with a debit to cash and a credit to miscellaneous revenue. The most effective method for detecting this type of error is:

Send a bank confirmation as of year-end.

Which of the following is not a universal rule for achieving internal control over cash?

Separate recordkeeping from accounting for cash to the extent possible.

In verifying credits to perpetual inventory records of a nonmanufacturing firm, the auditor would be most interested in examining the:

Shipping documents.

For good internal control, a copy of a receiving report should be sent to all of the following departments except:

Shipping.

Properly designed internal control will permit the same employee to:

Sign checks, and also cancel supporting documents.

The auditors' search for unrecorded liabilities is completed:

Subsequent to the balance sheet date.

Which one of the following procedures would not be appropriate for the auditors in discharging their responsibilities concerning the client's physical inventories?

Supervising the taking of the annual physical inventory.

Which of the following best describes the auditors' approach to the audit of accrued liabilities?

Test computations.

A CPA examines a sample of copies of December and January sales invoices for the initials of the person who verified the quantitative data. This is an example of a:

Test of a control.

Which of the following audit procedures most likely would provide assurance that a manufacturing entity's inventory valuation is proper?

Testing the entity's computation of standard overhead rates.

When control risk for the existence assertion is assessed at a high level, which of the following is a likely effect with respect to the auditors' confirmation of receivables?

The account balances as of year-end will generally be confirmed.

Which statement is correct relating to the count of inventory when a company that specializes in taking such counts ("the company") is involved with counting a client's inventory?

The auditor should not consider the counts by the company, by themselves, sufficient appropriate audit evidence.

Which of the following is true about the auditors' observation of the client's physical inventory?

The auditors should evaluate the adequacy of the client's counting procedures.

Which of the following is not true relating to the auditors' observation of the client's physical inventory?

The auditors should make certain that consigned items from suppliers are included in physical inventory totals.

Which of the following best describes the auditors' response to a client's use of statistical sampling techniques to estimate the inventory?

The auditors should satisfy themselves as to the statistical validity of the technique, and the reasonableness of the allowance for sampling risk and sampling error used.

Which of the following is true about the auditors' observation of the client's physical inventory?

The auditors' observation addresses the existence assertion.

Effective internal control for purchases generally can be achieved in a well-planned organizational structure with a separate purchasing department that has:

The authority to make purchases of requisitioned materials and services.

Which of the following is consistent with effective internal control over sales transactions?

The billing department accounts for all shipping documents.

You were surprised to note that approximately 95% of returned positive accounts receivable confirmation requests indicated that the customers thought that they owed a larger balance than the amount that had been printed by your client on the confirmation. This might be explained by the fact that:

The cash receipts journal was held open after year-end.

Which one of the following would the auditor consider to be an incompatible operation if the cashier receives remittances from the mailroom?

The cashier posts the receipts to the accounts receivable subsidiary ledger.

Analytical procedures performed during an audit indicate that accounts receivable doubled since the end of the prior year. However, the allowance for doubtful accounts as a percentage of accounts receivable remained about the same. Which of the following client explanations would satisfy the auditor?

The client opened a second retail outlet during the current year and its credit sales approximately equaled the older outlet.

An auditor's analytical procedures have revealed that the accounts receivable of a client have doubled since the end of the prior year. However, the allowance for doubtful accounts, as a percentage of accounts receivable remained about the same. Which of the following client explanations most likely would satisfy the auditor?

The client opened a second retail outlet in the current year and its credit sales approximately equaled the older, established outlet.

Which of the following would be least likely to diminish the validity of evidence obtained through confirmation of accounts receivable?

The confirmation requests are sent on the client's letterhead.

Which of the following is not a reason for the special significance attached by the auditors to the verification of inventories?

The existence of inventories is inherently difficult to substantiate.

Which of the following is the best argument against the use of negative accounts receivable confirmation requests?

The inference drawn from receiving no reply may not be correct.

Auditors may use positive and/or negative forms of confirmation requests for accounts receivable. Of the following, which combination is it most likely that the auditors will use?

The positive form used for large balances and the negative form for the small balances.

The Standard Form to Confirm Account Balances with Financial Institutions includes information on all of the following except:

The principal amount paid on a direct liability.

To assure that all purchases are authorized before payment is made, accounting department personnel should match the vendor's invoice to:

The purchase order.

As one of the year-end audit procedures, the auditor instructed the client's personnel to prepare a confirmation request for a bank account that had been closed during the year. After the client's treasurer has signed the request, it was mailed by the assistant treasurer. What is the major flaw in this audit procedure?

The request was mailed by the assistant treasurer.

To verify that all sales that have been shipped to customers have been recorded, a test of transactions should be completed on a representative sample drawn from:

The shipping clerk's file of duplicate copies of bills of lading.

Which of the following is an internal control weakness for a company whose inventory of supplies consists of a large number of individual items?

The storekeeper is responsible for maintenance of perpetual inventory records.

Which of the following fraudulent activities most likely could be perpetrated due to the lack of effective internal controls in the revenue cycle?

The write-off of receivables by personnel who receive cash permits the misappropriation of cash.

An auditor discovered that a client's accounts receivable turnover is substantially lower for the current year than for the prior year. This may indicate that:

There was an improper cutoff of sales at the end of the year.

Which statement is correct with respect to accounts payable confirmations?

They are more frequently used in situations in which some vendors don't send monthly statements.

Which of the following is not a control that generally is established over cash receipts?

To insure accurate posting, the accounts receivable clerk should post the customers' receipts from customers' checks.

Which of the following best describes the reason for the auditors' review of the client's cost accounting system?

To obtain evidence about the valuation of work in process, finished goods, and cost of goods sold.

When the auditors discover an understatement of liabilities, they would most likely also expect to find an:

Understatement of assets.

Auditors should be aware that a voucher system may result in which of the following at year-end:

Understatement of liabilities.

Which of the following manipulations of cash transactions would overstate the cash balance on the financial statements?

Understatement of outstanding checks.

Unrecorded liabilities are most likely to be found during the review of which of the following documents?

Unpaid bills.

An auditor compares annual revenues and expenses with similar amounts from the prior year and investigates all changes exceeding 10%. This procedure most likely could indicate that:

Unrealized gains from increases in the value of available-for-sale securities were recorded in the income account for trading securities.

An auditor performs a test to determine whether all merchandise for which the client was billed was received. The population for this test consists of all:

Vendor's invoices.

In verifying debits to perpetual inventory records of a nonmanufacturing firm, the auditor would be most interested in examining the:

Vendors' invoices.

Which of the following is not one of the independent auditor's objectives regarding the examination of inventories?

Verifying that all inventory owned by the client is on hand at the time of the count.

Assume that the auditors are concerned about disbursement transactions that have been recorded for improper amounts. Which procedure(s) would possibly identify these transactions?

both

An auditor may obtain information on the December 31 month-end balance per bank in which of the following?

december 31 bank statement

A client uses a periodic inventory system. Would one expect a credit to which of the following accounts at the point of sale?

sales

A client uses a perpetual inventory system. Would one expect a credit to which of the following accounts at the point of sale?

sales, inventory

An auditor may obtain information on the December 31 month-end balance per bank in which of the following?

standard confirmation form, january 1-10 cutoff statement