Exam 22: Audit of the Capital Acquisition and Repayment Cycle

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In the audit of the transactions and amounts in the capital acquisitions and repayments cycle, the auditor must take great care in making sure that the significant legal requirements affecting the financial statements have been properly fulfilled and:

(Multiple Choice)

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Question 61

The record of the outstanding shares at any given time is maintained in the:

(Multiple Choice)

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Question 62

What are two important internal control procedures that companies should implement to prevent misstatements in owners' equity when a company maintains its own records of stock transactions and outstanding stock?

(Essay)

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Question 63

The tests of details of balances procedure which requires the auditor to trace the totals of the notes payable list to the general ledger satisfies the audit objective of:

(Multiple Choice)

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Question 64

Assessed control risk and results of substantive tests of transactions are normally unimportant for designing tests of details of balances for which of the following accounts?

(Multiple Choice)

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Question 65

Which of the following owners' equity transactions usually require specific authorization from a company's board of directors?

(Multiple Choice)

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Question 66

The accuracy of a dividend declaration can be audited by recalculating the amount on the basis of the dividend per share times the number of shares outstanding.

(True/False)

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Question 67

The audit procedure "Review the notes to determine whether any are related party notes or accounts payable" is performed when verifying the classification objective for notes payable.

(True/False)

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Question 68

Which of the following balance-related audit objectives is not applicable to the audit of notes payable?

(Multiple Choice)

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Question 69

The record of the issuance and repurchase of capital stock for the life of the corporation is maintained in the:

(Multiple Choice)

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Question 70

Any company with stock listed on a securities exchange is required to engage a(n)________.

(Multiple Choice)

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Question 71

All corporations must have a ________ account.

(Multiple Choice)

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Question 72

The board of directors must authorize the amount of the dividend per share and the dates of record and payment of the dividend.

(True/False)

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Question 73

Any restrictions on the payment of dividends must be disclosed in the footnotes to the financial statements.

(True/False)

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Question 74

The evidence obtained during the tests of details of balances helps the auditor satisfy the notes payable presentation and disclosure objectives.

(True/False)

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Question 75

You are auditing the long-term notes payable account for a client.Which of the following audit procedures would you most likely employ?

(Multiple Choice)

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Question 76

When auditing interest-bearing debt, the auditor should ________ verify the related interest expense and interest payable.

(Multiple Choice)

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Question 77

The Securities and Exchange Commission requires companies listed on exchanges to employ stock transfer agents.

(True/False)

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Question 78

The shareholders' capital stock master file is used as the basis for the payment of dividends and also acts as a check on the accuracy of the common stock balance in the general ledger.

(True/False)

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Question 79

The authorization of an issuance of capital stock normally includes all but which of the following?

(Multiple Choice)

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Question 80

Showing 61 - 80 of 91

Exam 22: Audit of the Capital Acquisition and Repayment Cycle

In the audit of the transactions and amounts in the capital acquisitions and repayments cycle, the auditor must take great care in making sure that the significant legal requirements affecting the financial statements have been properly fulfilled and:

The record of the outstanding shares at any given time is maintained in the:

What are two important internal control procedures that companies should implement to prevent misstatements in owners' equity when a company maintains its own records of stock transactions and outstanding stock?

The tests of details of balances procedure which requires the auditor to trace the totals of the notes payable list to the general ledger satisfies the audit objective of:

Assessed control risk and results of substantive tests of transactions are normally unimportant for designing tests of details of balances for which of the following accounts?

Which of the following owners' equity transactions usually require specific authorization from a company's board of directors?

The accuracy of a dividend declaration can be audited by recalculating the amount on the basis of the dividend per share times the number of shares outstanding.

The audit procedure "Review the notes to determine whether any are related party notes or accounts payable" is performed when verifying the classification objective for notes payable.

Which of the following balance-related audit objectives is not applicable to the audit of notes payable?

The record of the issuance and repurchase of capital stock for the life of the corporation is maintained in the:

Any company with stock listed on a securities exchange is required to engage a(n)________.

All corporations must have a ________ account.

The board of directors must authorize the amount of the dividend per share and the dates of record and payment of the dividend.

Any restrictions on the payment of dividends must be disclosed in the footnotes to the financial statements.

The evidence obtained during the tests of details of balances helps the auditor satisfy the notes payable presentation and disclosure objectives.

You are auditing the long-term notes payable account for a client.Which of the following audit procedures would you most likely employ?

When auditing interest-bearing debt, the auditor should ________ verify the related interest expense and interest payable.

The Securities and Exchange Commission requires companies listed on exchanges to employ stock transfer agents.

The shareholders' capital stock master file is used as the basis for the payment of dividends and also acts as a check on the accuracy of the common stock balance in the general ledger.

The authorization of an issuance of capital stock normally includes all but which of the following?

The Demand for Audit and Other Assurance Services

The Cpa Profession

Audit Reports

Professional Ethics

Legal Liability

Audit Responsibilities and Objectives

Audit Evidence

Audit Planning and Analytical Procedures

Materiality and Risk

Internal Control, Control Risk, and Section 404 Audits

Fraud Auditing

The Impact of Information Technology on the Audit Process

Overall Audit Strategy and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests of Transactions

Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Completing the Tests in the Sales and Collection Cycle: Accounts Receivable

Audit Sampling for Tests of Details of Balances

Audit of the Acquisition and Payment Cycle: Tests of Controls, Substantive Tests of Transactions, and Accounts Payable

Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts

Audit of the Payroll and Personnel Cycle

Audit of the Inventory and Warehousing Cycle

Audit of Cash and Financial Instruments

Completing the Audit

Other Assurance Services

Internal and Governmental Financial Auditing and Operational Auditing

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