Revenue Cycle - CPA Auditing and Attestation (AUD)
Card 1 of 24
An example of an internal control procedure regarding the sale of an item on credit.
An example of an internal control procedure regarding the sale of an item on credit.
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In this scenario, management would review the terms of sale. The other choices are controls over the procurement cycle.
In this scenario, management would review the terms of sale. The other choices are controls over the procurement cycle.
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Management would ensure proper segregation of duties by:
Management would ensure proper segregation of duties by:
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Items b, c, and d would be appropriate job duties for specific employees. Combining the preparation of adjusting entries with financial statements would be a departure from internal control.
Items b, c, and d would be appropriate job duties for specific employees. Combining the preparation of adjusting entries with financial statements would be a departure from internal control.
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To ensure all transactions were included in financial statements
To ensure all transactions were included in financial statements
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A subsequent test of accounts receivable is necessary to determine that all accounts receivable were included in the financial statements. The auditors will test subsequent receipts to determine if the revenue transaction was included in the appropriate period.
A subsequent test of accounts receivable is necessary to determine that all accounts receivable were included in the financial statements. The auditors will test subsequent receipts to determine if the revenue transaction was included in the appropriate period.
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Tests designed to detect credit sales made before the end of the year that has been recorded in the subsequent year provide assurance about management's assertion regarding:
Tests designed to detect credit sales made before the end of the year that has been recorded in the subsequent year provide assurance about management's assertion regarding:
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Cutoff tests are designed to determine whether transactions have been recorded in the proper period. Tests to detect credit sales made before the end of the year that have been recorded in the subsequent year provide assurance about both cutoff and completeness.
Cutoff tests are designed to determine whether transactions have been recorded in the proper period. Tests to detect credit sales made before the end of the year that have been recorded in the subsequent year provide assurance about both cutoff and completeness.
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An auditor is required to confirm A/R if the A/R balances are:
An auditor is required to confirm A/R if the A/R balances are:
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The use of audit confirmations for an entity;'s A/R is a required GAAP procedure if the A/R balances are deemed material to the balance sheet.
The use of audit confirmations for an entity;'s A/R is a required GAAP procedure if the A/R balances are deemed material to the balance sheet.
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Kiting and lapping are methods of potential fraud that would be discovered in which business cycle?
Kiting and lapping are methods of potential fraud that would be discovered in which business cycle?
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These types of fraud would be cash related frauds as they require the movement of cash.
These types of fraud would be cash related frauds as they require the movement of cash.
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An example of an internal control procedure regarding the sale of an item on credit.
An example of an internal control procedure regarding the sale of an item on credit.
Tap to reveal answer
In this scenario, management would review the terms of sale. The other choices are controls over the procurement cycle.
In this scenario, management would review the terms of sale. The other choices are controls over the procurement cycle.
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Management would ensure proper segregation of duties by:
Management would ensure proper segregation of duties by:
Tap to reveal answer
Items b, c, and d would be appropriate job duties for specific employees. Combining the preparation of adjusting entries with financial statements would be a departure from internal control.
Items b, c, and d would be appropriate job duties for specific employees. Combining the preparation of adjusting entries with financial statements would be a departure from internal control.
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To ensure all transactions were included in financial statements
To ensure all transactions were included in financial statements
Tap to reveal answer
A subsequent test of accounts receivable is necessary to determine that all accounts receivable were included in the financial statements. The auditors will test subsequent receipts to determine if the revenue transaction was included in the appropriate period.
A subsequent test of accounts receivable is necessary to determine that all accounts receivable were included in the financial statements. The auditors will test subsequent receipts to determine if the revenue transaction was included in the appropriate period.
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Tests designed to detect credit sales made before the end of the year that has been recorded in the subsequent year provide assurance about management's assertion regarding:
Tests designed to detect credit sales made before the end of the year that has been recorded in the subsequent year provide assurance about management's assertion regarding:
Tap to reveal answer
Cutoff tests are designed to determine whether transactions have been recorded in the proper period. Tests to detect credit sales made before the end of the year that have been recorded in the subsequent year provide assurance about both cutoff and completeness.
Cutoff tests are designed to determine whether transactions have been recorded in the proper period. Tests to detect credit sales made before the end of the year that have been recorded in the subsequent year provide assurance about both cutoff and completeness.
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An auditor is required to confirm A/R if the A/R balances are:
An auditor is required to confirm A/R if the A/R balances are:
Tap to reveal answer
The use of audit confirmations for an entity;'s A/R is a required GAAP procedure if the A/R balances are deemed material to the balance sheet.
The use of audit confirmations for an entity;'s A/R is a required GAAP procedure if the A/R balances are deemed material to the balance sheet.
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Kiting and lapping are methods of potential fraud that would be discovered in which business cycle?
Kiting and lapping are methods of potential fraud that would be discovered in which business cycle?
Tap to reveal answer
These types of fraud would be cash related frauds as they require the movement of cash.
These types of fraud would be cash related frauds as they require the movement of cash.
← Didn't Know|Knew It →
An example of an internal control procedure regarding the sale of an item on credit.
An example of an internal control procedure regarding the sale of an item on credit.
Tap to reveal answer
In this scenario, management would review the terms of sale. The other choices are controls over the procurement cycle.
In this scenario, management would review the terms of sale. The other choices are controls over the procurement cycle.
← Didn't Know|Knew It →
Management would ensure proper segregation of duties by:
Management would ensure proper segregation of duties by:
Tap to reveal answer
Items b, c, and d would be appropriate job duties for specific employees. Combining the preparation of adjusting entries with financial statements would be a departure from internal control.
Items b, c, and d would be appropriate job duties for specific employees. Combining the preparation of adjusting entries with financial statements would be a departure from internal control.
← Didn't Know|Knew It →
To ensure all transactions were included in financial statements
To ensure all transactions were included in financial statements
Tap to reveal answer
A subsequent test of accounts receivable is necessary to determine that all accounts receivable were included in the financial statements. The auditors will test subsequent receipts to determine if the revenue transaction was included in the appropriate period.
A subsequent test of accounts receivable is necessary to determine that all accounts receivable were included in the financial statements. The auditors will test subsequent receipts to determine if the revenue transaction was included in the appropriate period.
← Didn't Know|Knew It →
Tests designed to detect credit sales made before the end of the year that has been recorded in the subsequent year provide assurance about management's assertion regarding:
Tests designed to detect credit sales made before the end of the year that has been recorded in the subsequent year provide assurance about management's assertion regarding:
Tap to reveal answer
Cutoff tests are designed to determine whether transactions have been recorded in the proper period. Tests to detect credit sales made before the end of the year that have been recorded in the subsequent year provide assurance about both cutoff and completeness.
Cutoff tests are designed to determine whether transactions have been recorded in the proper period. Tests to detect credit sales made before the end of the year that have been recorded in the subsequent year provide assurance about both cutoff and completeness.
← Didn't Know|Knew It →
An auditor is required to confirm A/R if the A/R balances are:
An auditor is required to confirm A/R if the A/R balances are:
Tap to reveal answer
The use of audit confirmations for an entity;'s A/R is a required GAAP procedure if the A/R balances are deemed material to the balance sheet.
The use of audit confirmations for an entity;'s A/R is a required GAAP procedure if the A/R balances are deemed material to the balance sheet.
← Didn't Know|Knew It →
Kiting and lapping are methods of potential fraud that would be discovered in which business cycle?
Kiting and lapping are methods of potential fraud that would be discovered in which business cycle?
Tap to reveal answer
These types of fraud would be cash related frauds as they require the movement of cash.
These types of fraud would be cash related frauds as they require the movement of cash.
← Didn't Know|Knew It →
An example of an internal control procedure regarding the sale of an item on credit.
An example of an internal control procedure regarding the sale of an item on credit.
Tap to reveal answer
In this scenario, management would review the terms of sale. The other choices are controls over the procurement cycle.
In this scenario, management would review the terms of sale. The other choices are controls over the procurement cycle.
← Didn't Know|Knew It →
Management would ensure proper segregation of duties by:
Management would ensure proper segregation of duties by:
Tap to reveal answer
Items b, c, and d would be appropriate job duties for specific employees. Combining the preparation of adjusting entries with financial statements would be a departure from internal control.
Items b, c, and d would be appropriate job duties for specific employees. Combining the preparation of adjusting entries with financial statements would be a departure from internal control.
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