Rift Valley University, Kality Campus

College of Business and Economics

Department of Accounting and Finance

Auditing Principles and Practices 2 Assignment –I for 4th year students. ( 20%)

Instruction: Attempt all Questions clearly and Submission deadline date: 10

June2021

1. Define Source and nature of Account receivables

2. List and discuss Auditor’s objective in auditing account receivable and sales.

3. Discuss the importance of evaluating accounting system and internal control

as well as procedures to be carried out during the course of Audit over
inventories and cost of goods sold

4. What auditors do if internal control procedure is not satisfactory of one’s

company sales?

5. What are the procedures typically to be performed by to achieve audit

program for inventories and cost of goods sold
6. How internal control over sales studied and evaluated?

7. What is a Substantive procedure for sales transaction and how auditors

apply?

8. How Auditors verify and examine whether there is effective internal control
regarding account receivables and sales transactions.

9. List and discuss substantive test auditors has to apply for account
receivables

10. What are the Audit programs for verification of receivables and sales
transactions?

11. Define the term: A, clerical accuracy B, occurrence, C valuation, D,

completeness E, presentation and disclosure in relation to performing
substantive test of inventories and cost of goods sold