Solved

Match Seven of the Terms (A-K)with the Definitions Provided Below

Question 101

Matching

Match seven of the terms (a-k)with the definitions provided below (1-7):

Premises:

Responses:

A form used to help the auditor decide whether planned detection risk for tests of details of balances should be low, medium, or high for each balance-related audit objective.

Negative confirmation

Misstatements that take place as a result of current period transactions being recorded in a subsequent period, or subsequent period transactions being recorded in the current period.

Blank confirmation form

A listing of the balances in the accounts receivable master file at the balance sheet date broken down according to the amount of time that has passed between the date of sale and the balance sheet date.

Evidence planning worksheet

A letter, addressed to the debtor, requesting a response only if the recipient disagrees with the amount of the stated account balance.

Realizable value of accounts receivable

A reported difference in a confirmation from a debtor that is determined to be a timing difference between the client's and debtor's records and therefore not a misstatement.

Timing difference in an account receivable confirmation

The follow-up of a positive confirmation not returned by the debtor with the use of documentation evidence to determine whether the recorded receivable exists and is collectible.

Positive confirmation

A letter, addressed to the debtor, requesting that the recipient indicate directly on the letter whether the stated account balance is correct or incorrect and, if incorrect, by what amount.

Invoice confirmation

Alternative procedures

Accounts receivable balance-related audit objectives

Cutoff misstatements

Aged trial balance

Premises:

A form used to help the auditor decide whether planned detection risk for tests of details of balances should be low, medium, or high for each balance-related audit objective.

Misstatements that take place as a result of current period transactions being recorded in a subsequent period, or subsequent period transactions being recorded in the current period.

A letter, addressed to the debtor, requesting a response only if the recipient disagrees with the amount of the stated account balance.

A reported difference in a confirmation from a debtor that is determined to be a timing difference between the client's and debtor's records and therefore not a misstatement.

The follow-up of a positive confirmation not returned by the debtor with the use of documentation evidence to determine whether the recorded receivable exists and is collectible.

A letter, addressed to the debtor, requesting that the recipient indicate directly on the letter whether the stated account balance is correct or incorrect and, if incorrect, by what amount.

Responses:

Negative confirmation

Blank confirmation form

Evidence planning worksheet

Realizable value of accounts receivable

Timing difference in an account receivable confirmation

Positive confirmation

Invoice confirmation

Alternative procedures

Accounts receivable balance-related audit objectives

Cutoff misstatements

Aged trial balance

Correct Answer:

Premises:

Responses:

Negative confirmation

Blank confirmation form

Evidence planning worksheet

Realizable value of accounts receivable

Timing difference in an account receivable confirmation

Positive confirmation

Invoice confirmation

Alternative procedures

Accounts receivable balance-related audit objectives

Cutoff misstatements

Aged trial balance