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Audit Review Chapter 9-13

Audit Review
Across
_________ are items of tangible property that are held for sale in the ordinary course of business, that are in the process of production for such sale, or that are to be currently consumed in the production of goods or services to be available for sale.
_________ Assets that have a physical form, such as machinery, buildings, and land.
Under this obligation the auditor is primarily concerned with understatement and, therefore, focuses on the completeness assertion.
Reduction in inventory presumed to be due to physical loss or theft.
A term used to describe management’s recognition that a significant portion of fixed assets is no longer as productive as had originally been expected.
In the ______ cycle, the most significant accounts include revenue and accounts receivable.
The employee makes a sale but does not record it and steals the cash. This type of conduct is known as __________ .
A request for the purchase of goods or services by an authorized department or function within the organization; may be documented on paper or in a computer system.
Down
A technique used to cover up the embezzlement of cash whereby a cash collection from one customer is stolen by an employee who takes another customer’s payment and credits the first customer.
The risk that the seller will be unable to collect the entitled contractual consideration from the customer.
A fraudulent cash scheme to overstate cash assets at year-end by showing the same cash in two different bank accounts using an interbank transfer.
A confirmation request to customers asking them to respond directly to the auditor if they agree or disagree with the indicated balance
The collection of cash and reduction of the possibility of fraud can be facilitated by the use of ________.
Nonphysical assets, such as patents, trademarks, copyrights, and brand recognition
A confirmation request to customers asking them to respond directly to the auditor only if they disagree with the indicated balance.
Reading new loan agreements (may be performed during planning/risk assessment procedures) is what type of test?
Formal legal document that conveys responsibility to the shipper.