ACC330 Exam 1 Study Guide A+ Graded
Name the type of audit procedure:
Sending a written request to the entity's customers requesting that they report the
amount owed to the entity. - ANSWER Confirmation
Name the type of audit procedure:
Examining large sales invoices for a period of two days before and after year-end to
determine if sales are recorded in the proper period - ANSWER Inspection of records &
documents
Name the type of audit procedure:
Agreeing the total of the accounts receivable subsidiary ledger to the accounts
receivable general ledger account. - ANSWER Inspection of records & documents
Reperformance
Name the type of audit procedure:
Discussing the adequacy of the allowance for doubtful accounts with the credit
manager - ANSWER Inquiry
Name the type of audit procedure:
Comparing the current-year gross profit percentage with the gross profit percentage
for the last four years - ANSWER Analytical Procedures
Name the type of audit procedure:
Examining a new plastic extrusion machine to ensure that this major acquisition was
received. - ANSWER Inspection of a tangible asset
Name the type of audit procedure:
Watching the entity's warehouse personnel count the raw materials inventory - ANSWER
Observation
Name the type of audit procedure:
Performing test counts of the warehouse personnel's count of the raw material -
ANSWER Reperformance
Name the type of audit procedure:
Obtaining a letter from the entity's attorney indicating that there were no lawsuits in
progress against the entity - ANSWER Confirmation
, Name the type of audit procedure:
Tracing the prices used by the entity's billing program for pricing sales invoices to the
entity's approved price list - ANSWER Inspection of records & documents
Reperformance
Occurrence - ANSWER Transactions & events that have been recorded or disclosed
have occurred
Completeness (T&E) - ANSWER All transactions & events that should have been
recorded have been recorded
Authorization - ANSWER All transactions & events have been properly authorized
Accuracy (T&E) - ANSWER Amounts & other data relating to recorded transactions &
events have been measured & recorded appropriately
Cutoff - ANSWER Transactions & events have been recorded in the correct accounting
period
Classification (T&E) - ANSWER Transactions & events have been recorded in the proper
accounts
Presentation (T&E) - ANSWER Transactions & events are appropriately aggregated or
disaggregated & clearly described, & related disclosures are relevant &
understandable in the context of the requirements of the applicable financial reporting
framework
Existence - ANSWER Assets, liabilities, & equity interests exist
Rights & Obligations - ANSWER The entity holds or controls the rights to assets, and
liabilities are the obligations of the entity
Completeness (AB) - ANSWER All assets, liabilities, & equity interests that should have
been recorded have been recorded
Accuracy, Valuation, & Allocation - ANSWER Assets, liabilities, & equity interests have
been included in the financial statements at appropriate amounts, & any resulting
valuation or allocation adjustments have been appropriately recorded
Classification (AB) - ANSWER Assets, liabilities, & equity interests have been recorded
in the proper accounts
Presentation (AB) - ANSWER Assets, liabilities, & equity interests are appropriately
aggregated or disaggregated & clearly described, & related disclosures are relevant &
understandable in the context of the requirements of the applicable financial reporting
framework
Information Asymmetry - ANSWER The manager generally has more information about
Name the type of audit procedure:
Sending a written request to the entity's customers requesting that they report the
amount owed to the entity. - ANSWER Confirmation
Name the type of audit procedure:
Examining large sales invoices for a period of two days before and after year-end to
determine if sales are recorded in the proper period - ANSWER Inspection of records &
documents
Name the type of audit procedure:
Agreeing the total of the accounts receivable subsidiary ledger to the accounts
receivable general ledger account. - ANSWER Inspection of records & documents
Reperformance
Name the type of audit procedure:
Discussing the adequacy of the allowance for doubtful accounts with the credit
manager - ANSWER Inquiry
Name the type of audit procedure:
Comparing the current-year gross profit percentage with the gross profit percentage
for the last four years - ANSWER Analytical Procedures
Name the type of audit procedure:
Examining a new plastic extrusion machine to ensure that this major acquisition was
received. - ANSWER Inspection of a tangible asset
Name the type of audit procedure:
Watching the entity's warehouse personnel count the raw materials inventory - ANSWER
Observation
Name the type of audit procedure:
Performing test counts of the warehouse personnel's count of the raw material -
ANSWER Reperformance
Name the type of audit procedure:
Obtaining a letter from the entity's attorney indicating that there were no lawsuits in
progress against the entity - ANSWER Confirmation
, Name the type of audit procedure:
Tracing the prices used by the entity's billing program for pricing sales invoices to the
entity's approved price list - ANSWER Inspection of records & documents
Reperformance
Occurrence - ANSWER Transactions & events that have been recorded or disclosed
have occurred
Completeness (T&E) - ANSWER All transactions & events that should have been
recorded have been recorded
Authorization - ANSWER All transactions & events have been properly authorized
Accuracy (T&E) - ANSWER Amounts & other data relating to recorded transactions &
events have been measured & recorded appropriately
Cutoff - ANSWER Transactions & events have been recorded in the correct accounting
period
Classification (T&E) - ANSWER Transactions & events have been recorded in the proper
accounts
Presentation (T&E) - ANSWER Transactions & events are appropriately aggregated or
disaggregated & clearly described, & related disclosures are relevant &
understandable in the context of the requirements of the applicable financial reporting
framework
Existence - ANSWER Assets, liabilities, & equity interests exist
Rights & Obligations - ANSWER The entity holds or controls the rights to assets, and
liabilities are the obligations of the entity
Completeness (AB) - ANSWER All assets, liabilities, & equity interests that should have
been recorded have been recorded
Accuracy, Valuation, & Allocation - ANSWER Assets, liabilities, & equity interests have
been included in the financial statements at appropriate amounts, & any resulting
valuation or allocation adjustments have been appropriately recorded
Classification (AB) - ANSWER Assets, liabilities, & equity interests have been recorded
in the proper accounts
Presentation (AB) - ANSWER Assets, liabilities, & equity interests are appropriately
aggregated or disaggregated & clearly described, & related disclosures are relevant &
understandable in the context of the requirements of the applicable financial reporting
framework
Information Asymmetry - ANSWER The manager generally has more information about
