Chapter16-final..docVIP

CHAPTER 16 Multiple-Choice Questions 1. easy Which of the following is not a balance-related audit objective evaluated in the audit of accounts receivable? a a. Timing b. Realizable value c. Completeness d. Accuracy 2. The two primary classes of transactions in the sales and collection cycle are: easy a. sales and sales discounts. b b. sales and cash receipts. c. sales and sales returns. d. sales and accounts receivable. 3. The appropriate evidence to be obtained from tests of details must be decided on a(n): easy a. efficiency basis. c b. effectiveness basis. c. audit objectives basis. d. none of the above. 4. easy Which of the following is not a balance-related audit objective evaluated in the audit of accounts receivable? d a. Accuracy b. Completeness c. Rights d. Each of the above is a balance-related audit objective 5. easy Tests of which balance-related audit objective are normally performed first in an audit of the sales and collection? d a. Accuracy b. Completeness c. Rights d. Detail tie-in 6. easy For most audits, inherent risk for accounts receivable is moderate or low except for which balance-related audit objectives? d a. Timing and realizable value. b. Completeness and existence. c. Existence and accuracy. d. Realizable value and cutoff. 7. easy Which of the following types of receivables would not deserve the special attention of the auditor? d a. Accounts receivables with credit balances. b. Accounts that have been outstanding for a long time. c. Receivables from affiliated companies. d. Each of the above would receive special attention.  8. easy b A listing of the balances in the accounts receivable master file at the balance sheet date, by total balance outstanding and by the amount of time the component parts have been outstanding, is the: a. customer list. b. aged trial balance. c. accounts receivable ledger. d. schedule of accounts receivable. 9. easy