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

Accounting discussion questionsdq1review the provisions of

ACCOUNTING DISCUSSION QUESTIONS DQ1 Review the provisions of the Sarbanes-Oxley Act of 2002 to address the accounting scandals in the late 1990s and early 2000s (Enron, WorldCom, etc.). Identify the provisions that you b ...

Problem 1emma and laine form the equal el partnership emma

PROBLEM #1 Emma and Laine form the equal EL Partnership. Emma contributes cash of $100,000. Laine contributes property with an adjusted basis of $40,000 and a fair market value of $100,000. A. How much gain. If any, must ...

Question 1abc inc has estimated the following revenues and

Question 1 ABC Inc. has estimated the following revenues and expenses related phase I of a proposed new housing development? Incremental sales= $5,081,953, total cash expenses $3,212,751, depreciation $623,167, taxes 33% ...

1 a title page replace this page with your title page

1. A title page (replace this page with your title page), proper grammar and a reference list. 2. A 2-3 page summary of the article - here's a suggested method for writing the summary: a. Read the article and make sure y ...

Question 1with respect to transferability of ownership

Question 1 With respect to transferability of ownership interests, a sole proprietor may: not transfer her interests may only transfer her interest with approval of the state freely transfer her interests transfer her in ...

Case 2b - mendel paper companymendel paper company produces

CASE 2B - MENDEL PAPER COMPANY Mendel Paper Company produces four basic paper product lines at one of its plants: computer paper, napkins, place mats, and poster board. Materials and operations vary according to the line ...

Infrastructure and gasb statement1 answer the following

Infrastructure and GASB Statement 1. Answer the following questions with regard to infrastructure: A) What is infrastructure? B) What are two methods that might be used to record infrastructure expense from year to year? ...

Questionson may 5 2006 disney company completed an all

Questions On May 5, 2006, Disney Company completed an all stock acquisition of Pixar, a digital animation studio. Disney believes that the creation of high quality feature animation is a key driver of success across many ...

Accountingbullwatch a mursaus video titled accounts

Accounting • Watch A. Mursau's video titled "Accounts Receivable Bad Debt Expense (Direct Write Off Method Vs Allowance Method)": https://www.youtube.com/watch?v=r3YPSwFsIps&feature=youtu.be • Based on the information in ...

Question 1how would outstanding checks be handled when

Question 1 How would outstanding checks be handled when reconciling the ending cash balance per the bank statement to the correct adjusted cash balance? A. They would be added to the balance of the bank statement. B. The ...

  • 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