Auditing Question

Why is it important to place emphasis on the existence and rights (ownership) assertions when auditing accounts receivable?Which audit procedures are usually the most useful for auditing the existence and rights assertions? What analytical procedures might be informative regarding the existence assertion?

Auditing

What account balances are included in a revenue and collection cycle? What specific control procedures should be in place and operating in internal control governing revenue recognition and cash accounting? What assertions are made about classes of transactions and events in the revenue and collection cycle?

Auditing Question

Suppose you selected a sample of customers’ accounts receivable and wanted to find supporting evidence for the entries in the accounts. Where would you go to vouch the debit entries? What would you expect to find? Where would you go to vouch the credit entries? What would you expect to find?

Auditing Problem - (Revenue Recognition)

Judgments about whether revenue should be recognized are among the most contentious that an auditor faces. Following are a number of situations in which the auditor will be required to either acquire additional information or make decisions about the amount of revenue to be recognized. Required a. Identify the primary criteria the auditor should use in determining revenue to be recognized. b. For each of the scenarios: • Identify the key issues to address in determining whether revenue should be recognized. • Identify additional information the auditor may want to gather in making a decision on revenue recognition. • Based only on the information presented, develop a rationale for ... click for more

Auditing

Payroll Tests of Controls. See attached file for full problem description.