Student Forums CIA Part 2: Practice of Internal Auditing Section II: Planning the Engagement CIA Challenge exam – Part II 2D. Determine Engagement Procedures

CIA Challenge exam – Part II 2D. Determine Engagement Procedures

  • Creator
    Topic
  • #245658

    This forum is restricted to members of the associated course(s).

    This forum is restricted to members of the associated course(s).

    Virginia Yu
    Participant
    Question: Even  I answer this correctly, can you explain why Vouch a sample ( answer C) will not detect unrecorded A/R?
    54. Question ID: CIA 1189 I.12 (Topic: 2D. Determine Engagement Procedures and Prepare Work Program)
    To ascertain that all credit sales are recorded in accounts receivable, an internal auditor should

    • <!–WATUEMAILanswerWATUEMAIL–>A. Compare a sample of customer purchase orders with related shipping documents.
    • <!–WATUEMAILanswerWATUEMAIL–>B. Confirm selected accounts receivable balances by direct correspondence with customers.
    • <!–WATUEMAILanswerWATUEMAIL–>C. Vouch a sample of subsidiary ledger entries to related sales invoices and to related shipping documents.
    • <!–WATUEMAILanswer user-answer correct-answerWATUEMAIL–>D. Trace a sample of shipping documents to related sales invoices and the subsidiary ledger.correct

    Explanation for A:

    Comparing a sample of customer purchase orders with related shipping documents would not detect unrecorded receivables.

    Explanation for B:

    Confirming selected accounts receivable balances by direct correspondence with customers would not detect any unrecorded receivables.

    Explanation for C:

    Vouching a sample of entries will not detect any unrecorded receivables.

Viewing 1 replies (of 1 total)
  • Author
    Replies
  • #245659

    This forum is restricted to members of the associated course(s).

    Brian Hock
    HOCK international

    Virginia,

    Because we are looking for something that has not been recorded, we will not find it if we select something from the list of what has been recorded. If we start with the subsidiary ledger, the items there have all been recorded. And we are looking for something that has not been recorded.

    Brian

Viewing 1 replies (of 1 total)

This forum is restricted to members of the associated course(s).

  • You must be logged in to reply to this topic.