Question

T/F 6. In determining which vendor to order goods from, the purchasing department should always use...

T/F

6. In determining which vendor to order goods from, the purchasing department should always use its customary vendor.

T/F

7. Confirmation of accounts payable is generally mandatory.

T/F

8. The purchase cutoff test involves determining that purchase transaction occurring near the balance sheet data are recorded in the proper time period.

T/F

9. In a review of financial statements under SSARS, the accountant must obtain an understanding of the clients internal control, but need not perform test of controls.

T/F

10. Your client, ABC. INC mails a positive confirmation request to customer A. The confirmation states that the balance receivable is $1,000. Customer A replies that the balance is only $900. A valid explanation for this difference might be that there is a payment in transit from customer A.

Homework Answers

Answer #1

6. F  

In determining which vendor to order goods from, the purchasing department should not always use its customary vendor

7. F

The external confirmations from the accounts payable are the additional procedures which may be taken on sampling but it is not mandatory. it is used as additional audit evidence.

8. T

The Purchase cut off test involves determining that ourchase transaction occuring near the balancesheet date are recorded in proper time period.

9. F

In review of financial statements under SSARS, the accountant must obtain an understanding of the clients internal control, if requires, test of controls also need to be performed

10. T

Payment in transit also might be the reason for the difference between the balance receivables between both books i.e., ABC.INC and his customer A

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT