Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

1) From which one of the following evidence-gathering audit procedures will auditor get most assurance concerning existence of inventories?

Choose one:

a. Confirmation of inventories in a public warehouse
b. Auditor’s re-computation of inventory extensions.
c. Observation of physical inventory counts.
d. Written inventory representations from management.

2) When designing audit procedures, direction of tests is the vital step in satisfying:

Choose one:

a. Cutoff objective.
b. Completeness objective.
c. Classification objective.
d. Valuation objective.

3) Which of the following procedures will auditor most probably carry out in searching for unrecorded payables?

Choose one:

a. Vouch sample of creditor balances to supporting invoices, receiving reports, and purchase orders.
b. Compare ratio of accounts payable to purchases with prior year’s ratio.
c. Compare cash payments occurring after balance sheet date with list of creditors at year-end.
d. Reconcile receiving reports with related cash payments made just prior to year-end.

4) A common test is to account for the sequence of different types of documents, like duplicate sales invoices selected from sales journal, watching for omitted and duplicate numbers or invoices outside the normal sequence. This test provides evidence of:

Choose one:

a. Existence.
b. Completeness.
c. Neither completeness or existence.
d. Both completeness and existence.

5) The statement which best expresses auditor's responsibility with respect to events occurring between balance sheet date and the end of the audit examination is that:

Choose one:

a. the auditor is responsible for determining that proper cutoff has been made and performing general review of events occurring in subsequent period.
b. the auditor's responsibility is to find out that a proper cutoff has been made and that transactions recorded on or before the balance sheet date actually occurred.
c. the auditor has no responsibility for events occurring in subsequent period unless these events affect transactions recorded on or before balance sheet date.
d. auditor is fully responsible for events occurring in subsequent period and must extend all detailed procedures through last day of fieldwork.

6) The audit of the financial report includes initial approach of addressing fraud. How should an auditor address fraud in the planning stage?

Choose one:

a. The auditor must not be aggressive in its initial approach to fraud as trust may be lost by the client.
b. The auditor must realise that most people are honest and not automatically assume that fraud exists when planning the audit.
c. The auditor must consider the likelihood of fraud existing in the company in the planning stage.
d. The auditor must test for fraud in the planning stage by sampling accounts.

7) In many audits of sales transactions, no substantive tests of transactions are performed for completeness objective because:

Choose one:

a. understatements of assets and income are greater concern than overstatements.
b. overstatements of assets and income are a greater concern than understatements.
c. the unrecorded sales cause a reduction of accounts receivable; therefore, the ratios of the two financial statements will not be misleading.
d. it doesn't matter if income is understated because savings on income tax offsets the reduced revenue and net income is correct.

8) Before releasing the audit report, the auditor must

Choose one:

a. carry out analytical procedures.
b. estimate subsequent client fee for services.
c. give subsequent contingency disclosure.
d. issue a management letter.

9) If auditor of a financial report understands internal control and assesses control risk as low, it is supposed that internal control:

Choose one:

a. is considered relatively weak and will not be tested
b. has been assessed erroneously by auditor
c. is not required to be tested as it is considered strong
d. might be tested in the attempt to support assessment

10) Auditor considers internal control by 4 steps. What is the order for these steps:

i. Get understanding of internal control.
ii. Assess control risk.
iii. Perform tests of controls.
iv. Decide on planned detection risk and substantive testing

Choose one:

a. 4, 1, 2, 3
b. 2, 1, 3, 4
c. 1, 3, 2, 4
d. 1, 2, 3, 4

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M92673

Have any Question? 


Related Questions in Accounting Basics

Analyze tootsie rolls 2015 consolidated statements of

Analyze Tootsie Roll's 2015 Consolidated Statements of Earnings and Retained Earnings. Discuss the relevance for a manufacturer of reporting a gross profit amount. Then calculate or report the 2015 Gross Profit Rate (%) ...

Data for the year-end adjustments for al geromes courier

Data for the year-end adjustments for Al Gerome's Courier Services are as follows: Insurance expired during the year ($950.00) Depreciation of Equipment for the year ($9,860.00) Salaries accrued at December 31 ($5100.00) ...

Principles of accountingthe accounting cyclequestion

Principles of Accounting The Accounting Cycle Question A • Explain why temporary accounts are closed each period. Question B • Identify the 10 steps in the accounting cycle.

Assignmentapplication break-even analysiswhen expenses and

Assignment Application: Break-Even Analysis When expenses and revenues are equal, this is known as the "break-even point" or BEP. To determine break-even, an examination of fixed and variable costs (expenses) in relation ...

- discuss the pros and cons of leasing vs purchasing a

- Discuss the pros and cons of leasing vs purchasing a fleet of business vehicles for a client's business, (assume the loan rate on purchasing the vehicles is 6% and the implicit interest rate in the lease is also 6%). - ...

The trial balance before adjustment for sheffield company

The trial balance before adjustment for Sheffield Company shows the following balances.   Dr. Cr. Accounts Receivable $84,800 Allowance for Doubtful Accounts 2,420 Sales Revenue   $434,200 Using the data above, give the ...

Assignment questionbesar ltd acquired all of the shares in

Assignment Question Besar Ltd acquired all of the shares in Kecil Ltd on 1 July 2015. At that date, equity of Kecil Ltd consisted of: Share Capital $2 000 000 Retained earnings 800 000 At 1 July 2015, all the assets and ...

Task -question 1 - saasu task 1you are working as an

Task - Question 1 - Saasu Task 1 You are working as an accountant in a regional accounting firm and have been approached by the owner of a start-up retail business. They have chosen Saasu as their accounting system and h ...

Del gato clinic deposits all cash receipts on the day when

Del Gato Clinic deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on June 30, 2015, its Cash account shows a(n) $14,287 debit balance. Del Gato ...

Harmon helmets purchased equipment for 62000 cash sold

Harmon Helmets purchased equipment for $62,000 cash, sold equipment costing $36,000 with a book value of $22,000 at a loss, and declared dividends during 2013. No new notes payable were issued during the year. Financial ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen