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AICPA CPA-Auditing Exam - 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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Charlene
5 months ago
C is more about pricing, not completeness. B all the way!
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Kristel
5 months ago
A is about recomputing, but it doesn't check for completeness.
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Lai
6 months ago
Wait, are we sure B is the right answer? Sounds too straightforward.
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Timothy
6 months ago
I agree, B really targets unrecorded transactions.
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France
6 months ago
B seems like the best choice for completeness.
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Dominga
6 months ago
I feel like option D is more about credit policies, which doesn't really address completeness. I think I’d lean towards B or C.
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Cornell
6 months ago
I’m a bit confused about option A. Recomputing invoices seems more related to accuracy than completeness, right?
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Olga
6 months ago
I remember practicing a question similar to this where we had to identify procedures for completeness. I think verifying prenumbered documents is key.
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Francis
6 months ago
I think option B makes the most sense since it directly relates to ensuring all sales are recorded, but I'm not entirely sure.
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Levi
6 months ago
I'm pretty sure the answer is 3 copies, since that's the standard for locally-redundant storage. I'll double-check the Azure docs to confirm, but I feel confident about this one.
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Vi
6 months ago
I'll start by identifying the core IPMP requirements, then double-check my answer before submitting.
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Norah
11 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 months ago
Keva: Absolutely, it's a crucial part of the audit process to ensure the integrity of financial statements.
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Carla
9 months ago
User 3: I think it's important to verify that all sales transactions are being recorded accurately.
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Keva
10 months ago
User 2: Definitely, it's a great way to test controls for completeness of sales transactions.
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Eladia
10 months ago
Wilford: It's important to have those controls in place to prevent any errors or fraud.
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Wilford
10 months ago
User 2: Definitely, it's like solving a puzzle to ensure completeness of sales transactions.
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Sol
10 months ago
User 1: I agree, inspecting prenumbered shipping documents sounds like a fun task.
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Gerri
10 months ago
User 1: I agree, inspecting prenumbered shipping documents sounds like a fun audit procedure.
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Gretchen
11 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
10 months ago
C) Compare the invoiced prices on prenumbered sales invoices to the entity's authorized price list.
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Alton
10 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
11 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
11 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
10 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
11 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
11 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
12 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
10 months ago
Inquiring about credit granting policies could also be useful in ensuring completeness.
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Paulina
10 months ago
Yes, that could help too. It's important to use multiple procedures to test controls.
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Frank
10 months ago
But wouldn't verifying extensions and footings on sales invoices also help ensure completeness?
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Josefa
10 months ago
I agree, inspecting the prenumbered shipping documents is a good way to test completeness.
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Margurite
10 months ago
Inquiring about credit granting policies can help ensure consistent application of credit checks.
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Maurine
10 months ago
Verifying extensions and footings on sales invoices is also a good procedure.
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Kenneth
10 months ago
It's important to make sure all sales are being properly recorded.
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Katy
10 months ago
I agree, inspecting the reports of prenumbered shipping documents is a good way to test completeness.
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Roslyn
1 year 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
1 year 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
1 year 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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