Exam IIA-CIA-Part2 topic 1 question 32 discussion

Actual exam question from IIA's IIA-CIA-Part2

Question #: 32
Topic #: 1

The following is an excerpt from an audit engagement workpaper:
✑ A Company
✑ Accounts Receivable
✑ Date
Objective. To determine if the computer system is correctly recording all accounts receivable transactions.
Procedures: Judgmental selection of a sample of all accounts receivable balances greater than $50,000 for positive confirmation of balances.
Conclusion: Based on the results of testing wherein all but three confirmations were returned, the accounts receivable balance is fairly presented in all material respects.
Which of the following is true regarding the workpaper?

A. It is not appropriate to judgmentally select a sample when testing accounts receivable.
B. A conclusion should be reached only for the results of overall testing, not for individual procedures.
C. The audit procedures used are not consistent with the audit objective.
D. The format of the workpaper does not conform to the standard format for workpapers.

Show Suggested Answer

Suggested Answer: C 🗳️

by az_zu at July 23, 2020, 4:12 a.m.

Comments

Submit Cancel

Mariecia

10 months ago

Confirmations test existence wherein tracing tests proper accounting/recording

upvoted 1 times

...

[Removed]

2 years, 6 months ago

Objective relates to transactions. Procedures tested account balances

upvoted 1 times

...

KCDU

3 years, 4 months ago

I think this more aligns with the Objective vs. Procedure. The Objective says ALL A/R, whereas the procedure only call's for balances over $50K. This does not test for all, only those over $50K.

upvoted 3 times

...

az_zu

3 years, 10 months ago

How does the procedure not conform with the objectives?

upvoted 1 times

MomenOmran

3 years, 9 months ago

When you objective is to ensure that all what should have recorded is recorded, U follow tracing procedure, but what has mentioned in the question is a voucher technique

upvoted 4 times

chung002

3 years, 6 months ago

thanks for sharing. what is the correct audit procedure then for tracing ?

upvoted 1 times

theJMG

3 years, 1 month ago

In my opinion, it correct procedure should be tracing sampled transactions from customer invoices to accounts receivable records, and checking it these are accurately captured.

upvoted 1 times

...