Auditing 4808 Final Exam Questions and Answers 100% Correct Graded A+ 2026/27
An auditor most likely would limit substantive tests of sales transactions when control risk is
assessed as low for the existence or occurrence assertions concerning sales transactions and the
auditor has already gathered evidence supporting: - cash receipts and accounts receivable.
Upon receipt of customers' checks in the mailroom, a responsible employee should prepare a
control listing. A copy of the listing should be sent to the: - accounts receivable
bookkeeper to update the subsidiary accounts receivable records.
In auditing accounts receivable, the negative form of confirmation request most likely would be
used when: - the combined assessed level of inherent and control risk relative to accounts
receivable is low.
Tracing copies of sales invoices to shipping documents will provide evidence that all: -
billed sales were shipped.
An auditor selects a sample from the file of shipping documents to determine whether invoices
were prepared. This test is performed to assess the assertion of: - completeness.
Alpha Company uses its sales invoices for posting perpetual inventory records. Inadequate
control activities over the invoicing function allow goods to be shipped that are not invoiced. The
inadequate control activities could cause an: - understatement of revenues and receivables
and an overstatement of inventory.
An auditor most likely would limit substantive tests of sales transactions when control risk is
assessed as low for the existence or occurrence assertions concerning sales transactions and the
auditor has already gathered evidence supporting: - cash receipts and accounts receivable.
Upon receipt of customers' checks in the mailroom, a responsible employee should prepare a
control listing. A copy of the listing should be sent to the: - accounts receivable
bookkeeper to update the subsidiary accounts receivable records.
In auditing accounts receivable, the negative form of confirmation request most likely would be
used when: - the combined assessed level of inherent and control risk relative to accounts
receivable is low.
Tracing copies of sales invoices to shipping documents will provide evidence that all: -
billed sales were shipped.
An auditor selects a sample from the file of shipping documents to determine whether invoices
were prepared. This test is performed to assess the assertion of: - completeness.
Alpha Company uses its sales invoices for posting perpetual inventory records. Inadequate
control activities over the invoicing function allow goods to be shipped that are not invoiced. The
inadequate control activities could cause an: - understatement of revenues and receivables
and an overstatement of inventory.
