Principles of Auditing & Other Assurance Services Chapter 11 Exam Bank Solution Manual (Graded A+)
4 views 0 purchase
Course
Principles of Auditing & Other Assurance Services
Institution
Principles Of Auditing & Other Assurance Services
Principles of Auditing & Other Assurance Services Chapter 11 Exam Bank Solution Manual (Graded A+)
Aged trial balance - Answers A listing of individual customers' accounts classified by the number of days subsequent to billing, that is, by age. A preliminary step in estimating the collectibility o...
Principles of Auditing & Other Assurance Services Chapter 11 Exam Bank Solution Manual (Graded A+)
Aged trial balance - Answers A listing of individual customers' accounts classified by the number of days
subsequent to billing, that is, by age. A preliminary step in estimating the collectibility of accounts
receivable.
Bill and hold transactions - Answers Transactions in which sales of merchandise are billed to customers
prior to delivery, with the goods being held by the seller. These transactions may overstate revenues
and net income if they do not meet specific requirements for recognition as sales.
Channel stuffing - Answers A marketing practice that suppliers sometimes use to boost sales by inducing
customers to buy substantially more inventory than they can promptly resell. Channel stuffing without
appropriate provision for sales returns is an example of booking tomorrow's revenue today in order to
window dress the financial statements.
Confirmation request - Answers A request sent to a confirming party requesting that the confirming
party consider the accuracy of information included in that request. A confirmation request may take
one of two forms: positive confirmation request and negative confirmation request.
Confirming party - Answers The individual who responds to the confirmation request. Responses to
confirmation requests provide more relevant and reliable audit evidence when the confirmation
requests are sent to confirming parties who the auditors believe are knowledgeable about the
information to be confirmed. For example, an individual in accounts payable may provide more relevant
and reliable audit evidence with respect to a client's receivable balance than an individual who has no
direct access to accounts payable records.
External confirmation - Answers Audit evidence obtained by the auditors as a direct written response to
the auditors from a third party (the confirming party) in paper form or by electronic or other medium
(e.g., the auditors' direct access to information held by a third party).
Interim audit work - Answers Those audit procedures that are performed before the balance sheet date.
The purpose is to facilitate earlier issuance of the audit report and to spread the auditors' work more
uniformly over the year.
Negative confirmation request - Answers A request that the confirming party respond directly to the
auditors indicating where the confirming party disagrees with the information in the request.
Pledging of receivables - Answers To assign to a bank, factor, finance company, or other lender an
exclusive claim against accounts receivable as security for a debt.
Positive confirmation request - Answers A request that the confirming party respond directly to the
auditor providing the requested information or indicating whether the confirming party agrees or
disagrees with the information in the request.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller TutorJosh. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
