Purpose of sales-cutoff test

Explain how you would perform a sales-cutoff test and why such a test is important.

Audit for adequacy of the provision for bad debts

Describe the audit procedures you might use in order to assess the adequacy of the provision for bad debts?

Auditing the sales and collection cycle

Please help me so I can complete the following: You are auditing the sales and collection cycle for the United Regional Hospital, a small not-for-profit hospital. The hospital has a reputation for excellent medical services and weak record keeping. The medical people have a tradition of doing all aspects of their job correctl ...continues

Review of the working papers on the audit of a new client

Frank is a technical manager of a CPA firm. Recently Frank was requested by his firm to conduct a review of the working papers on the audit of a new client, Alpha Electronics Limited (“Alpha”), a company engaging in the manufacturing and trading of computer accessories and devices, and to report his findings to the partner in c ...continues

Positive and negative external confirmation requests

a) Explain what are positive and negative external confirmation requests? (b) You are assigned to audit the trade receivable balance of a trading company. The company accountant has provided you the trade receivable balance report as at 31st March 2002. What information from this report would you require to prepare positive c ...continues

The major assertions that can be made in financial statements and auditors’ objectives

REQUIRED: (1).Discussed the major assertions that can be made in financial statements and auditors’ objectives, and some key questions related to each. (2).Discussed why auditors should act as though there is always a potential conflict of interest between the auditor and the management of the enterprise under audit. (3). ...continues

Audits

AICPA professional standards provide uniform wording for the standard unqualified audit report. For each of the seven parts: 1-List the specific report parts. 2-Identify the contents of each part. 3-Determine if a qualified opinion, adverse opinion, or a disclaimer of opinion would be issued for each of the above occurrenc ...continues

Internal control responsibilities: management & auditors

What are management’s and auditors’ respective responsibilities regarding internal control?

Audit trail

What is the meaning of audit trail, and why is it necessary for the audit process?

Control risk

What is control risk and what is the role of control risk assessment in audit planning?