Question 1

For which of the following accounts would the matching concept be the most appropriate?

Accepted Answer

A)  Cost of goods sold. 
B)  Research and development. 
C)  Depreciation expense. 
D)  Sales. 
A)  Cost of goods sold. 
B)  Research and development. 
C)  Depreciation expense. 
D)  Sales.

Question 2

The usual source for journal entries posted to the general ledger to record the purchase of inventory is

Accepted Answer

A)  sales invoices updated with cost data from the inventory records department. 
B)  purchase invoices updated with cost data from the inventory records department. 
C)  receiving reports updated with cost data from the accounts payable department. 
D)  vouchers payable journal from the accounts payable department. 
A)  sales invoices updated with cost data from the inventory records department. 
B)  purchase invoices updated with cost data from the inventory records department. 
C)  receiving reports updated with cost data from the accounts payable department. 
D)  vouchers payable journal from the accounts payable department.

Question 3

When auditing merchandise inventory at year-end,the auditor performs a purchase cutoff test to obtain evidence that

Accepted Answer

A)  all goods purchased before year-end are received before the physical inventory count. 
B)  no goods held on consignment for customers are included in the inventory balance. 
C)  no goods observed during the physical count are pledged or sold. 
D)  all goods owned at year-end are included in the inventory balance. 
A)  all goods purchased before year-end are received before the physical inventory count. 
B)  no goods held on consignment for customers are included in the inventory balance. 
C)  no goods observed during the physical count are pledged or sold. 
D)  all goods owned at year-end are included in the inventory balance.

Question 4

The ____________________________________ is the primary original record for payroll accounting.
Question also found in study guide

Accepted Answer

The answer of The ____________________________________ is the primary original record...

Question 5

An audit plan for accounts payable would not include which of the following procedures?

Accepted Answer

A)  Obtaining a trial balance of recorded accounts payable. 
B)  Sending confirmation to accounts with zero balances. 
C)  Reviewing cash receipts for the period after year-end. 
D)  Obtaining written client representations about related-party payables and pledges of assets as collateral for liabilities. 
A)  Obtaining a trial balance of recorded accounts payable. 
B)  Sending confirmation to accounts with zero balances. 
C)  Reviewing cash receipts for the period after year-end. 
D)  Obtaining written client representations about related-party payables and pledges of assets as collateral for liabilities.

Question 6

Which of the following client control activities is not usually performed in the vouchers payable (accounts payable)department?

Accepted Answer

A)  Determining the mathematical accuracy of the vendors' invoices. 
B)  Writing checks for the treasurer's signature to take advantage of purchase discounts. 
C)  Controlling the mailing of the check and remittance advice. 
D)  Checking the prices on the vendor's invoice. 
A)  Determining the mathematical accuracy of the vendors' invoices. 
B)  Writing checks for the treasurer's signature to take advantage of purchase discounts. 
C)  Controlling the mailing of the check and remittance advice. 
D)  Checking the prices on the vendor's invoice.

Question 7

When confirming accounts payable,emphasis should be put on what kind of accounts?

Accepted Answer

A)  Accounts with small or zero balances. 
B)  All accounts should be equally emphasized. 
C)  Accounts with large balances. 
D)  Accounts listed in the accounts payable subsidiary. 
A)  Accounts with small or zero balances. 
B)  All accounts should be equally emphasized. 
C)  Accounts with large balances. 
D)  Accounts listed in the accounts payable subsidiary.

Question 8

A weakness in internal control over recording retirements of equipment may cause an auditor to

Accepted Answer

A)  inspect certain items of equipment in the plant and trace those items to the accounting records. 
B)  review the subsidiary ledger to ascertain whether depreciation was taken on each item of equipment during the year. 
C)  trace additions to the "other assets" account to search for equipment that is still on hand but no longer being used. 
D)  select certain items of equipment from the accounting records and locate them in the plant. 
A)  inspect certain items of equipment in the plant and trace those items to the accounting records. 
B)  review the subsidiary ledger to ascertain whether depreciation was taken on each item of equipment during the year. 
C)  trace additions to the "other assets" account to search for equipment that is still on hand but no longer being used. 
D)  select certain items of equipment from the accounting records and locate them in the plant.

Question 9

In determining the effectiveness of an entity's policies and procedures relating to the occurrence assertion for payroll transactions,auditors most likely would inquire about and

Accepted Answer

A)  observe the separation of duties concerning personnel responsibilities and payroll disbursement. 
B)  inspect evidence of accounting for prenumbered payroll checks. 
C)  recompute the payroll deductions for employee fringe benefits. 
D)  verify the preparation of the monthly payroll account bank reconciliation. 
A)  observe the separation of duties concerning personnel responsibilities and payroll disbursement. 
B)  inspect evidence of accounting for prenumbered payroll checks. 
C)  recompute the payroll deductions for employee fringe benefits. 
D)  verify the preparation of the monthly payroll account bank reconciliation.

Question 10

If the risk of material misstatement is assessed as high,it is likely that additional substantive procedures will be required.

Accepted Answer

A) True 
 B)False

For which of the following accounts would the matching concept be the most appropriate?

The usual source for journal entries posted to the general ledger to record the purchase of inventory is

When auditing merchandise inventory at year-end,the auditor performs a purchase cutoff test to obtain evidence that

The ____________________________________ is the primary original record for payroll accounting. Question also found in study guide

An audit plan for accounts payable would not include which of the following procedures?

Which of the following client control activities is not usually performed in the vouchers payable (accounts payable)department?

When confirming accounts payable,emphasis should be put on what kind of accounts?

A weakness in internal control over recording retirements of equipment may cause an auditor to

In determining the effectiveness of an entity's policies and procedures relating to the occurrence assertion for payroll transactions,auditors most likely would inquire about and

If the risk of material misstatement is assessed as high,it is likely that additional substantive procedures will be required.

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

For which of the following accounts would the matching concept be the most appropriate?

The usual source for journal entries posted to the general ledger to record the purchase of inventory is

When auditing merchandise inventory at year-end,the auditor performs a purchase cutoff test to obtain evidence that

The ____________________________________ is the primary original record for payroll accounting. Question also found in study guide

An audit plan for accounts payable would not include which of the following procedures?

Which of the following client control activities is not usually performed in the vouchers payable (accounts payable)department?

When confirming accounts payable,emphasis should be put on what kind of accounts?

A weakness in internal control over recording retirements of equipment may cause an auditor to

In determining the effectiveness of an entity's policies and procedures relating to the occurrence assertion for payroll transactions,auditors most likely would inquire about and

If the risk of material misstatement is assessed as high,it is likely that additional substantive procedures will be required.

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