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Which of the following is a substantive procedure that an auditor most likely would perform to verify the existence and valuation assertions about rcorded accounts payable?

Vouching selected entries in the accounts payable subsidiary ledger to purchase orders and receiving reports

To determine whether accounts payable are complete, an auditor performs a test to verify that all merchandise received is recorded. The population of documents for this test cosists of all

Receiving reports

When performing a substantive test of a random sample of cash disbursements, an auditor is supplied with a photocopy of vendor invoices supporting the disbursements for one particular vendor rather than the original invoices. The auditor is told that the vendor's original invoices have been misplaced. What should the auditor do in response to this situation?

Reevaluate the risk of fraud and design alternate tests for the related transactions

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 auditing accounts payable, an auditor's procedures most likely will focus primarily on the relevant assertion about


Which of the following procedures would an auditor most likely perform in searching for unrecorded liabilities?

Vouch a sample cash disbursements recorded jsut after year end to receiving reports and vendor invoices.

An auditor's purpose in reviewing the renewal of a note payable shortly after the balance sheet date most likely is to obtain evidence concerning relevant assertions about

Classification and understandability

Which of the following procedures would an auditor least likely perform before the balance sheet date?

Confirmation of accounts payable

When using confirmations to provide evidence about the completeness assertion for accounts payable, the appropriate population most likely is

Vendors with whom the entity has previously done business.

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 vendor's invoices arrive, one of the employee approves the invoices for payment. After the invoices are paid, the employees 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

Tests designed to detect purchases made before the end of the year that have been recorded in the subsequent year most likely would provide assurance about the relevant assertion regarding


An internal control narrative indicates that an approved voucher is required to support every check request for payment of merchandise. Which of the following procedures provides the greatest assurance that this account is operating effectively?

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

When performing procedures to test assertions about purchases, an auditor vouches a sample of entries in the voucher register to the supporting documents. Which relevant assertion would this procedure most likely support?


The element of the audit-planning process most likely to be agreed upon with the client before implementation of the audit strategy is the determination of the

Timing of inventory observation procedures to be performed

When auditing inventoried, an auditor would least likely verify that

All inventory owned by the client is on hand at the time of the count

A client maintains perpetual inventory records in quantities and in dollars. If the assessed risk of material misstatement is high, and auditor would probably

Request the client to schedule the physical inventory count at the end of the year.

To gain assurance that all inventory items in a client's inventory listing schedule are valid, an auditor most likely would vouch

Items listed in the inventory listing schedule to inventory tags and the auditor's recorded count sheets

An auditor selected items for test counts while observing a client's physical inventory. The auditor then traced the test counts to the client's inventory listing. This procedure most likely obtained evidence concerning the relevant assertion about


While observing a client's annual physical inventory, an auditor recorded test count for several items and noticed that certain test counts were higher than the recorded quantities in the client's perpetual records. This situation could be the result of the client's failure to record

Sales returns

Which of the following audit procedures probably would provide the most reliable evidence concerning the entity's assertion of rights and obligations related to inventories?

Inspect agreements to determine whether any inventory is pledged as collateral or subject to any liens.

To measure how effectively an entity employs its resources, an auditor calculates inventory turnover by dividing average inventory into

Cost of goods sold

An auditor most likely would analyze inventory turnover rates to obtain evidence concerning relevant assertion about

Valuation and allocation

An auditor most likely would make inquiries of production and sales personnel concerning possible obsolete or slow-moving inventory to support the relevant asssertion about

Valuation and llocation

An auditor concluded that no excessive costs for an idle plant were charged to inventory. this conclusion most likely related to the auditor's objective to obtain evidence about the relevant assertions regarding inventory, including presentation and disclosure and

Valuation and allocation

Which of the following auditing procedures most likely would provide assurance regarding a manufacturing entity's relevant assertions about inventory valuation?

Testing the entity's computation of standard overhead rates

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