Question 1

The principal goal of the physical inspection of property,plant,and equipment is to determine actual valuation of property.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following controls should prevent an invoice for the purchase of merchandise from being paid twice?

Accepted Answer

A)  The check signer accounts for the numerical sequence of receiving reports used in support of each payment. 
B)  An individual independent of cash operations prepares a bank reconciliation. 
C)  The check signer reviews and cancels the voucher packets. 
D)  Two check signers are required for all checks over a specified amount. 
A)  The check signer accounts for the numerical sequence of receiving reports used in support of each payment. 
B)  An individual independent of cash operations prepares a bank reconciliation. 
C)  The check signer reviews and cancels the voucher packets. 
D)  Two check signers are required for all checks over a specified amount.

Question 3

"All purchase orders are supported by requisitions from proper persons" is a specific example of which management assertion?

Accepted Answer

A)  Occurrence. 
B)  Completeness. 
C)  Cutoff. 
D)  Classification. 
A)  Occurrence. 
B)  Completeness. 
C)  Cutoff. 
D)  Classification.

Question 4

Cash disbursements are authorized by

Accepted Answer

A)  purchase orders. 
B)  invoices. 
C)  receiving reports. 
D)  a complete voucher package. 
A)  purchase orders. 
B)  invoices. 
C)  receiving reports. 
D)  a complete voucher package.

Question 5

Effective control over the cash payroll function would mandate which of the following?

Accepted Answer

A)  The payroll clerk should fill the envelopes with cash and include a computation of the net wages. 
B)  The paymaster should be retain unclaimed payroll envelopes. 
C)  Each employee should be asked to sign a receipt for wages received. 
D)  A separate checking account for payroll should be maintained. 
A)  The payroll clerk should fill the envelopes with cash and include a computation of the net wages. 
B)  The paymaster should be retain unclaimed payroll envelopes. 
C)  Each employee should be asked to sign a receipt for wages received. 
D)  A separate checking account for payroll should be maintained.

Question 6

Tracing the payables to the cash disbursements journal can provide the evidence regarding the valuation of accounts payable.

Accepted Answer

A) True 
 B)False

Question 7

The __________________________________ has transaction initiation authority to add new employees and delete terminated employees.
Question also found in study guide

Accepted Answer

personnel

Question 8

Proper separation of duties involves the purchasing department as the recordkeeping function.

Accepted Answer

A) True 
 B)False

Question 9

The _____________________________________ inspects the goods received for _____________________________ and _____________________________ and then puts them in the hands of other responsible persons.
Question also found in study guide

Accepted Answer

receiving

Question 10

The test of controls for purchases,cash disbursements,and accounts payable include the following audit procedures.Next to each of the procedures,indicate the related transaction assertion.

Accepted Answer

1.completeness; 2.occurrence;

Question 11

Acquisition and expenditure activities include (1)purchasing goods and services,(2)receiving the goods or services,(3)recording the asset or expense and related liability,and (4)depreciating assets purchased.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following would not be included in the supporting documents for a voucher?

Accepted Answer

A)  Purchase order. 
B)  Vendor invoice. 
C)  Receiving report. 
D)  Blank check. 
A)  Purchase order. 
B)  Vendor invoice. 
C)  Receiving report. 
D)  Blank check.

Question 13

Which of the following personnel department procedures reduces the risk of payroll fraud and represents an appropriate responsibility for the department?

Accepted Answer

A)  Distributing paychecks. 
B)  Authorizing overtime hours. 
C)  Authorizing the addition or deletion of employees from the payroll. 
D)  Collecting and retaining unclaimed paychecks. 
A)  Distributing paychecks. 
B)  Authorizing overtime hours. 
C)  Authorizing the addition or deletion of employees from the payroll. 
D)  Collecting and retaining unclaimed paychecks.

Question 14

The auditors' "search for unrecorded liabilities" should emphasize payments made shortly after the end of the year.

Accepted Answer

A) True 
 B)False

Question 15

In a test of controls,auditors may trace receiving reports to vouchers recorded in the voucher register.This is a test for

Accepted Answer

A)  occurrence. 
B)  completeness. 
C)  classification. 
D)  cutoff. 
A)  occurrence. 
B)  completeness. 
C)  classification. 
D)  cutoff.

Question 16

The emphasis is on the completeness assertion because financial statement users tend to be more concerned about understated expenses and liabilities than overstated.

Accepted Answer

A) True 
 B)False

Question 17

L.Curtis,a maintenance supervisor,submitted maintenance invoices from a phony repair company and received the checks at a post office box.This should have been prevented by

Accepted Answer

A)  comparison of the company name to the approved vendor list by the check signer. 
B)  recognition of the excess maintenance costs by Curtis's supervisor. 
C)  refusal by the purchasing department to approve the vendor. 
D)  All of the above. 
A)  comparison of the company name to the approved vendor list by the check signer. 
B)  recognition of the excess maintenance costs by Curtis's supervisor. 
C)  refusal by the purchasing department to approve the vendor. 
D)  All of the above.

Question 18

The ________________________________________ is a set of procedures designed to yield audit evidence of liabilities that were not recorded in the reporting period.
Question also found in study guide

Accepted Answer

search for

Question 19

To test the transaction assertion of occurrence in the area of payroll,the auditor most likely would

Accepted Answer

A)  select a sample of personnel files and trace the pay rate to union contracts or other rate rights and obligations. 
B)  select a sample of personnel files and trace the pay rate to payroll department files used in payroll preparation. 
C)  select a sample of payroll register entries and recalculate gross pay, deductions, and net pay. 
D)  select a sample of payroll register entries and vouch hours worked to clock time cards. 
A)  select a sample of personnel files and trace the pay rate to union contracts or other rate rights and obligations. 
B)  select a sample of personnel files and trace the pay rate to payroll department files used in payroll preparation. 
C)  select a sample of payroll register entries and recalculate gross pay, deductions, and net pay. 
D)  select a sample of payroll register entries and vouch hours worked to clock time cards.

Question 20

Purchase cutoff procedures should be designed to produce evidence of whether merchandise is included in the inventory of the client company if the company

Accepted Answer

A)  has paid for the merchandise. 
B)  has physical possession of the merchandise. 
C)  holds legal title to the merchandise. 
D)  holds the shipping documents for the merchandise issued in the company's name. 
A)  has paid for the merchandise. 
B)  has physical possession of the merchandise. 
C)  holds legal title to the merchandise. 
D)  holds the shipping documents for the merchandise issued in the company's name.

The principal goal of the physical inspection of property,plant,and equipment is to determine actual valuation of property.

Which of the following controls should prevent an invoice for the purchase of merchandise from being paid twice?

"All purchase orders are supported by requisitions from proper persons" is a specific example of which management assertion?

Cash disbursements are authorized by

Effective control over the cash payroll function would mandate which of the following?

Tracing the payables to the cash disbursements journal can provide the evidence regarding the valuation of accounts payable.

The __________________________________ has transaction initiation authority to add new employees and delete terminated employees. Question also found in study guide

Proper separation of duties involves the purchasing department as the recordkeeping function.

The _______________________ inspects the goods received for _ and _______________ and then puts them in the hands of other responsible persons. Question also found in study guide

The test of controls for purchases,cash disbursements,and accounts payable include the following audit procedures.Next to each of the procedures,indicate the related transaction assertion.

Acquisition and expenditure activities include (1)purchasing goods and services,(2)receiving the goods or services,(3)recording the asset or expense and related liability,and (4)depreciating assets purchased.

Which of the following would not be included in the supporting documents for a voucher?

Which of the following personnel department procedures reduces the risk of payroll fraud and represents an appropriate responsibility for the department?

The auditors' "search for unrecorded liabilities" should emphasize payments made shortly after the end of the year.

In a test of controls,auditors may trace receiving reports to vouchers recorded in the voucher register.This is a test for

The emphasis is on the completeness assertion because financial statement users tend to be more concerned about understated expenses and liabilities than overstated.

L.Curtis,a maintenance supervisor,submitted maintenance invoices from a phony repair company and received the checks at a post office box.This should have been prevented by

The ________________________________________ is a set of procedures designed to yield audit evidence of liabilities that were not recorded in the reporting period. Question also found in study guide

To test the transaction assertion of occurrence in the area of payroll,the auditor most likely would

Purchase cutoff procedures should be designed to produce evidence of whether merchandise is included in the inventory of the client company if the company

Auditing and Assurance Services

Professional Standards

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash

Revenue and Collection Cycle

Production Cycle

Finance and Investment Cycle

Completing the Audit

Reports on Audited Financial Statements

Other Public Accounting Services

Professional Ethics

Legal Liability

Internal Audits governmental Audits and Fraud Examinations

Overview of Sampling

Attributes Sampling

Variables Sampling

Auditing and Information Technology

Filters

Exam 8: Acquisition and Expenditure Cycle

The principal goal of the physical inspection of property,plant,and equipment is to determine actual valuation of property.

Which of the following controls should prevent an invoice for the purchase of merchandise from being paid twice?

"All purchase orders are supported by requisitions from proper persons" is a specific example of which management assertion?

Cash disbursements are authorized by

Effective control over the cash payroll function would mandate which of the following?

Tracing the payables to the cash disbursements journal can provide the evidence regarding the valuation of accounts payable.

The __________________________________ has transaction initiation authority to add new employees and delete terminated employees. Question also found in study guide

Proper separation of duties involves the purchasing department as the recordkeeping function.

The _____________________________________ inspects the goods received for _____________________________ and _____________________________ and then puts them in the hands of other responsible persons. Question also found in study guide

The test of controls for purchases,cash disbursements,and accounts payable include the following audit procedures.Next to each of the procedures,indicate the related transaction assertion.

Acquisition and expenditure activities include (1)purchasing goods and services,(2)receiving the goods or services,(3)recording the asset or expense and related liability,and (4)depreciating assets purchased.

Which of the following would not be included in the supporting documents for a voucher?

Which of the following personnel department procedures reduces the risk of payroll fraud and represents an appropriate responsibility for the department?

The auditors' "search for unrecorded liabilities" should emphasize payments made shortly after the end of the year.

In a test of controls,auditors may trace receiving reports to vouchers recorded in the voucher register.This is a test for

The emphasis is on the completeness assertion because financial statement users tend to be more concerned about understated expenses and liabilities than overstated.

L.Curtis,a maintenance supervisor,submitted maintenance invoices from a phony repair company and received the checks at a post office box.This should have been prevented by

The ________________________________________ is a set of procedures designed to yield audit evidence of liabilities that were not recorded in the reporting period. Question also found in study guide

To test the transaction assertion of occurrence in the area of payroll,the auditor most likely would

Purchase cutoff procedures should be designed to produce evidence of whether merchandise is included in the inventory of the client company if the company

Auditing and Assurance Services

Professional Standards

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash

Revenue and Collection Cycle

Production Cycle

Finance and Investment Cycle

Completing the Audit

Reports on Audited Financial Statements

Other Public Accounting Services

Professional Ethics

Legal Liability

Internal Audits governmental Audits and Fraud Examinations

Overview of Sampling

Attributes Sampling

Variables Sampling

Auditing and Information Technology

Filters

The _______________________ inspects the goods received for _ and _______________ and then puts them in the hands of other responsible persons. Question also found in study guide