Question 1

A liability for a long-term purchase contract should generally be recognized when

Accepted Answer

A)  The contract is signed. 
B)  The goods are shipped. 
C)  The goods are received. 
D)  The goods are sold to match the cost. 
A)  The contract is signed. 
B)  The goods are shipped. 
C)  The goods are received. 
D)  The goods are sold to match the cost.

Question 2

The search for unrecorded liabilities should normally be performed up to the last day of fieldwork in the period following the audit client's balance sheet date.

Accepted Answer

A) True 
 B)False

Question 3

The transactions typically classified in the acquisition and expenditure cycle flow do not include

Accepted Answer

A)  Requesting goods, services, or assets. 
B)  Placing the sales order. 
C)  Receiving, inspecting, and accepting the assets. 
D)  Accounting for accounts payable. 
A)  Requesting goods, services, or assets. 
B)  Placing the sales order. 
C)  Receiving, inspecting, and accepting the assets. 
D)  Accounting for accounts payable.

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

An auditor wishes to perform tests of controls on a client's purchasing procedures.If the control activities leave no audit trail of documentary evidence,the auditor most likely will test the procedures by

Accepted Answer

A)  Confirmation and observation. 
B)  Observation and inquiry. 
C)  Analytical procedures and confirmation. 
D)  Inquiry and analytical procedures. 
A)  Confirmation and observation. 
B)  Observation and inquiry. 
C)  Analytical procedures and confirmation. 
D)  Inquiry and analytical procedures.

Question 6

The auditor decided to test accounts payable by sending open-ended (blank)confirmations to selected vendors.The auditor's best approach in selecting the vendor accounts to confirm is to

Accepted Answer

A)  Select vendor accounts with large balances. 
B)  Select vendor accounts at random in order to apply a statistical sampling procedure. 
C)  Select vendor accounts based on the number of purchases from vendors during the year. 
D)  Select vendor accounts that are past due. 
A)  Select vendor accounts with large balances. 
B)  Select vendor accounts at random in order to apply a statistical sampling procedure. 
C)  Select vendor accounts based on the number of purchases from vendors during the year. 
D)  Select vendor accounts that are past due.

Question 7

A voucher would typically contain

Accepted Answer

A)  A purchase requisition, purchase order, vendor invoice, receiving report, and check copy. 
B)  A purchase requisition, purchase order, sales invoice, receiving report, and check copy. 
C)  A purchase requisition, sales order, sales invoice, receiving report, and check copy. 
D)  A purchase requisition, sales order, vendor invoice, receiving report, and check copy. 
A)  A purchase requisition, purchase order, vendor invoice, receiving report, and check copy. 
B)  A purchase requisition, purchase order, sales invoice, receiving report, and check copy. 
C)  A purchase requisition, sales order, sales invoice, receiving report, and check copy. 
D)  A purchase requisition, sales order, vendor invoice, receiving report, and check copy.

Question 8

An internal control questionnaire for payroll processing occurrence assertion would not include which of the following questions?

Accepted Answer

A)  Are names of terminated employees reported in writing to the payroll department? 
B)  Is the payroll compared to personnel files periodically? 
C)  Are checks distributed by the employee's immediate supervisor? 
D)  Are all wage rates determined by contract or approved by a personnel officer? 
A)  Are names of terminated employees reported in writing to the payroll department? 
B)  Is the payroll compared to personnel files periodically? 
C)  Are checks distributed by the employee's immediate supervisor? 
D)  Are all wage rates determined by contract or approved by a personnel officer?

Question 9

A personnel file should establish the reality of a person's _______________________ and ____________________________.

Accepted Answer

existence;

A liability for a long-term purchase contract should generally be recognized when

The search for unrecorded liabilities should normally be performed up to the last day of fieldwork in the period following the audit client's balance sheet date.

The transactions typically classified in the acquisition and expenditure cycle flow do not include

Cash disbursements are authorized by

An auditor wishes to perform tests of controls on a client's purchasing procedures.If the control activities leave no audit trail of documentary evidence,the auditor most likely will test the procedures by

The auditor decided to test accounts payable by sending open-ended (blank)confirmations to selected vendors.The auditor's best approach in selecting the vendor accounts to confirm is to

A voucher would typically contain

An internal control questionnaire for payroll processing occurrence assertion would not include which of the following questions?

A personnel file should establish the reality of a person's _ and ______.

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 Governmental and Fraud Audits

Overview of Sampling

Attributes Sampling

Variables Sampling

Auditing in a Computerized Environment

Filters

Exam 8: Acquisition and Expenditure Cycle

A liability for a long-term purchase contract should generally be recognized when

The search for unrecorded liabilities should normally be performed up to the last day of fieldwork in the period following the audit client's balance sheet date.

The transactions typically classified in the acquisition and expenditure cycle flow do not include

Cash disbursements are authorized by

An auditor wishes to perform tests of controls on a client's purchasing procedures.If the control activities leave no audit trail of documentary evidence,the auditor most likely will test the procedures by

The auditor decided to test accounts payable by sending open-ended (blank)confirmations to selected vendors.The auditor's best approach in selecting the vendor accounts to confirm is to

A voucher would typically contain

An internal control questionnaire for payroll processing occurrence assertion would not include which of the following questions?

A personnel file should establish the reality of a person's _______________________ and ____________________________.

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 Governmental and Fraud Audits

Overview of Sampling

Attributes Sampling

Variables Sampling

Auditing in a Computerized Environment

Filters

A personnel file should establish the reality of a person's _ and ______.