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zvonat [6]
3 years ago
6

Indicate whether each of the following audit procedures is a test of controls, a substantive test, or dual-purpose test. Next, i

ndicate the financial statement assertion most closely related to each audit procedure.a. Vouch recorded sales invoices to supporting shipping documents. b. Inspect recorded sales invoices for credit approval. c. Vouch recorded sales invoices prices to the approved price list. d. Send confirmations to all customers regarding accounts receivable. e. Recalculate the arithmetic accuracy of the recorded sales invoices. f. Compare the shipment date of record sales invoices with the invoice record date. g. Trace recorded sales invoices to posting in the general ledger control account and in the correct customer's account. h. Select a sample of shipping documents from the shipping shipping department file and trace shipments to recorded sales invoices. i. Scan recorded sales invoices and shipping documents for missing numbers in sequence. j. Vouch sales invoices and shipping documents. k. Evaluate the adequacy of the allowance for doubtful accounts.
Business
1 answer:
irina [24]3 years ago
8 0

Answer:

The audit procedures whether controls, a substantive test, or dual-purpose test and the Financial statement assertion of the following procedures are given in the explanation below:

Explanation:

1.Vouch recorded sales invoices to supporting shipping documents.----

-----Dual-purpose/occurence and existence

2)Inspect recorded sales invoices for credit approval-----Test of controls/valuation and occurence

3) Vouch recorded sales invoices prices to the approved price list.

--Test of Controls/accuracy

4. Send confirmations to all customers regarding accounts receivable.

----Substantive test/existence

5) Recalculate the arithmetic accuracy of the recorded sales invoices.-----dual-purpose/accuracy and valuation

6) Compare the shipment date of record sales invoices with the invoice record date.-----dual-purpose/cut-off and completeness

7.)Trace recorded sales invoices to posting in the general ledger control account and in the correct customer's account-----dual-purpose/completeness

8)Select a sample of shipping documents from the shipping shipping department file and trace shipments to recorded sales invoices-------------dual purpose/completeness

9)Scan recorded sales invoices and shipping documents for missing numbers in sequence-----test of controls/completeness

10)Vouch sales invoices and shipping documents.-----Dual-purpose/occurence and existence

11.) Evaluate the adequacy of the allowance for doubtful accounts.

----Substantive/Valuation

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Answer:

<u>13.2%</u>

Explanation:

As per Capital Asset Pricing Model (CAPM),

Expected Rate Of Return = R_{f}  \ +\ B(R_{m} \ -\ R_{f} )

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               B= Beta , which represents the degree of sensitivity of security return to the market return.

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Thus, Expected rate of return of security X = 6 + 1.2(12 - 6)

                                                                        = 13.2%

CAPM model is used for calculating expected rate of return. As per the model, the investors expect a risk premium represented by excess of rate of return of market portfolio over risk free rate , in addition for the risk free rate of return.

The risk premium serves as a compensation for investing in risky securities instead of risk free securities.

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Elaina and Allen just purchased a home using a deed of trust. Which of the following is most likely true about their home loan
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Elaina and Allen just purchased a home using a deed of trust: A trustee will keep the title in its most basic form until the debt is paid off. This is further explained below.

<h3>What is a deed of trust?</h3>

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In conclusion, A deed of trust was used in the recent purchase of a property by Elaina and Allen. Until the mortgage debt is completely paid off, a trustee will retain the title in its simplest form.

Read more about the deed of trust

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Chabot Company had the following results last year: net operating income, $2,160; turnover, 5; and return on investment 18%. Cha
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An industry leader may be joining the project team and can potentially provide additional expertise. What strategies should the
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Answer:

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3) Choosing the right team and system

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Explanation:

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4) Defining milestones

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