Forest Hill

Chapter 13: Audit of Sales and Collection Cycle

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   | key activities an organization completes to execute and record business transactions for sales, cash receipts, sales returns, and so forth |

  | Sorry - the correct answer is Business functions for sales and collection cycle |

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   | processing transactions one at a time with an immediate update against the data files |

  | Sorry - the correct answer is Online processing |

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   | in the sales and collection cycle, data that are established when a customer starts purchasing, and updated as customer information changes |

  | Sorry - the correct answer is Semi-permanent (or master file) data |

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   | 6 objectives the auditor must satisfy for each class of transactions in the sales and collection cycle |

  | Correct! |

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   | determine whether the 6 transaction-related audit objectives have been satisfied for each class of transaction in the sales and collection cycle |

  | Sorry - the correct answer is Tests of controls in the sales and collection cycle |

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   | procedures resulting from auditor's decisions about appropriate audit procedures for each audit objective; used to prepare performance format audit program |

  | Sorry - the correct answer is Design format audit program |

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   | require both a programmed and manual component to satisfy an audit objective |

  | Correct! |

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   | conducted to determine whether a material error or material misstatement could occur due to a control weakness |

  | Sorry - the correct answer is Weakness investigation tests |

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   | decisions and processes necessary for transferring ownership of goods and services to customers after goods/services are made available for sale |

  | Sorry - the correct answer is Sales and collection cycle |

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   | procedures for a class of transactions organized in the format that they will be performed; prepared from a design format audit...