Group of answer choices

Determining that all checks are to be signed by individuals authorized by the board.

Examining a representative sample of signed checks and determining that the signatures
are authorized in the organizational signature book.

Comparing the check date with the first cancellation date.

Completing the tests of controls over check signatures in 4 hours.

Question 151 pts
Shipping documents should be traced to and compared with sales records or invoices to
Group of answer choices

Determine whether unit prices billed are in accordance with sales contracts.

Assure that shipments are billed to customers.

Ascertain whether all sales are supported by shipping documents.

Determine whether payments are properly applied to customer accounts.

Question 161 pts
While reviewing a division’s accounts, an auditor becomes concerned that the division’s
management may have shipped poor quality merchandise to boost sales and profitability
and thereby increase the manager’s bonus. For this reason, the auditor suspects that
returned goods are being shipped to other customers as new products without full
correction of their defects. Which of the following engagement procedures is the least
effective in determining whether such shipments took place?
Group of answer choices

Require the division to take a complete physical inventory at year end, and observe the
taking of the inventory.

Physically observe the shipping and receiving area for information of returned goods.

Examine credit memos issued after year end for goods shipped before year end.

Interview customer service representatives regarding unusual amounts of customer

complaints.
Question 171 pts