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AICPA Exam CPA-Auditing Topic 1 Question 69 Discussion

Actual exam question for AICPA's CPA-Auditing exam
Question #: 69
Topic #: 1
[All CPA-Auditing Questions]

Which of the following audit procedures would an auditor most likely perform to test controls relating to management's assertion concerning the completeness of sales transactions?

Show Suggested Answer Hide Answer
Suggested Answer: B

Choice 'b' is correct. A report on internal control related matters noted in an audit should not state that there are no significant deficiencies in internal control, since this statement might erroneously imply that the auditor searched for such conditions.

Choice 'a' is incorrect. The auditor is permitted to state that no material weaknesses were identified during the audit. Typically this occurs in reports submitted to governmental authorities.

Choice 'c' is incorrect. The auditor may suggest that corrective follow-up action should be taken due to the relative significance of material weakness discovered.

Choice 'd' is incorrect. The auditor's report may state that his or her consideration of internal control would not necessarily disclose all significant deficiencies that exist.


by Andra at Apr 25, 2023, 07:48 AM

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Norah
2 months ago
B is definitely the way to go. I mean, who doesn't love a good prenumbered document inspection? It's like a treasure hunt for accountants!
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Jill
9 days ago
Keva: Absolutely, it's a crucial part of the audit process to ensure the integrity of financial statements.
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Carla
11 days ago
User 3: I think it's important to verify that all sales transactions are being recorded accurately.
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Keva
30 days ago
User 2: Definitely, it's a great way to test controls for completeness of sales transactions.
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Eladia
1 months ago
Wilford: It's important to have those controls in place to prevent any errors or fraud.
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Wilford
1 months ago
User 2: Definitely, it's like solving a puzzle to ensure completeness of sales transactions.
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Sol
1 months ago
User 1: I agree, inspecting prenumbered shipping documents sounds like a fun task.
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Gerri
2 months ago
User 1: I agree, inspecting prenumbered shipping documents sounds like a fun audit procedure.
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Gretchen
2 months ago
Hmm, I'm not sure. D) Inquiring about the credit granting policies might also be relevant, as that could reveal potential issues with the sales process.
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Charlena
1 months ago
C) Compare the invoiced prices on prenumbered sales invoices to the entity's authorized price list.
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Alton
2 months ago
B) Inspect the entity's reports of prenumbered shipping documents that have not been recorded in the sales journal.
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Cristina
2 months ago
A) Verify that extensions and footings on the entity's sales invoices and monthly customer statements have been recomputed.
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Jess
3 months ago
I agree, B is the correct answer. Verifying the completeness of the sales record is crucial, and checking the prenumbered shipping documents is a great way to do that.
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Antonio
2 months ago
User 3: I see your point, but I still think B is the most appropriate choice. Inspecting prenumbered shipping documents can help verify completeness.
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Laura
2 months ago
User 2: I disagree, I believe C is the best option. Comparing invoiced prices to the authorized price list ensures completeness.
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Adaline
2 months ago
User 1: I think A is the correct answer. Recomputing the extensions and footings on sales invoices is important for completeness.
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Mattie
3 months ago
B) Inspecting the reports of prenumbered shipping documents that have not been recorded in the sales journal seems like the best way to test the completeness of sales transactions. This would help identify any missing or unrecorded sales.
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Shaunna
25 days ago
Inquiring about credit granting policies could also be useful in ensuring completeness.
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Paulina
26 days ago
Yes, that could help too. It's important to use multiple procedures to test controls.
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Frank
27 days ago
But wouldn't verifying extensions and footings on sales invoices also help ensure completeness?
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Josefa
29 days ago
I agree, inspecting the prenumbered shipping documents is a good way to test completeness.
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Margurite
30 days ago
Inquiring about credit granting policies can help ensure consistent application of credit checks.
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Maurine
1 months ago
Verifying extensions and footings on sales invoices is also a good procedure.
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Kenneth
1 months ago
It's important to make sure all sales are being properly recorded.
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Katy
1 months ago
I agree, inspecting the reports of prenumbered shipping documents is a good way to test completeness.
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Roslyn
3 months ago
But wouldn't verifying extensions and footings ensure the completeness of sales transactions? That's why I think A is the best option.
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Alishia
3 months ago
I disagree, I believe the correct answer is C) Compare the invoiced prices on prenumbered sales invoices to the entity's authorized price list.
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Roslyn
4 months ago
I think the answer is A) Verify that extensions and footings on the entity's sales invoices and monthly customer statements have been recomputed.
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