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NEW QUESTION: 1
An auditor most likely would limit substantive audit tests of sales transactions when control risk is
assessed as low for the occurrence assertion concerning sales transactions and the auditor has already
gathered evidence supporting:
A. Cutoffs of sales and purchases.
B. Cash receipts and accounts receivable.
C. Shipping and receiving activities.
D. Opening and closing inventory balances.
Choice "B" is correct. Examination of accounts receivable and cash receipts provides the auditor with
evidence with respect to both the completeness and the occurrence of sales transactions, thus limiting the
need to test sales transactions.
Choice "A" is incorrect. Examination of beginning and ending inventory balances may provide limited
evidence of the occurrence of purchases and the cost of goods sold, but not of sales.
Choice "C" is incorrect. Examination of shipping and receiving activities would not necessarily reduce the
testing of sales transactions.
Choice "D" is incorrect. Cutoffs of sales and purchases provides evidence regarding the sales occurring
close to year-end, not necessarily all sales for the year.
NEW QUESTION: 2
A project manager is evaluating proposals for a cloud commuting project. The project manager is particularly concerned about logical security controls in place at the service provider's facility.
Which of the following sections of the proposal would be MOST important to review, given the project manager's concerns?
A. Biometric access system
B. Environmental system configuration
C. Perimeter security lighting system
D. CCTV monitoring