To test whether sales have been recorded, the auditor should draw a sample from a file of

Related MCQs

• While vouching, how will the auditor ensure himself that all credit sales transactions have been recorded by the entity?
• While observing a client’s annual physical inventory, an auditor conducted test counts for 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 –
• An internal auditor discovered that fictitious purchases have been recorded by the purchase clerk. This indicates absence of which control?
• The auditor has serious concern about the going concern of the company. It is dependent on company’s obtaining a working capital loan from a bank which has been applied for. Then management of the company has made full disclosure of these facts in the notes to the balance sheet. The auditor is satisfied with the level of disclosure. He should issue_
• While verifying intangible assets, an auditor would recomputed amortization charges and determines whether amortization period is reasonable. The auditor tries to establish ….by doing it
• ‘Goods sent on approval basis’ have been recorded as ‘Credit sales’. This is an example of _
• While vouching wages, auditor should examine whether there is proper segregation of duties. Which of the following activities should not be done by same department?
• An auditor is verifying valuation of building which has been self constructed by the client. Which of the following documents is least relevant to the auditor for verification purposes?
• When an independent auditor relies on the work of an internal auditor, he or she should
• To select a sample for Audit, the auditor should consider ________________