Ch12+14 3

30 cards


 
  
Created Nov 19, 2012
by
marclc4

 

 
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1

An auditor suspects that certain client employees are ordering merchandise...

 

Cash disbursements

2

Which of the following manipulations would understate accounts payable on the...

 
Overstating Purchase Returns
3
Which statement is correct with respect to accounts payable confirmations?
A) The negative...
 
They are more frequently used in situations in which some vendors don't send monthly statements.
4

The assertion most directly addressed when performing the search for unrecorded...

 
Completeness
5
Which of the following is true about the auditors' observation of the client's physical...
 
The auditors should evaluate the adequacy of the client's counting procedures.
6
The auditors will usually trace the details of the test counts made during the observation...
 
Included in the final inventory schedule.
7
In auditing a manufacturing entity, which of the following procedures would an auditor least...
 
Tour the manufacturing plant or production facility.
8
Which of the following best describes the auditors' approach to the audit of accrued liabilities?
 
Test computations.
9
The form typically used to confirm accounts payable:
A) Does not require a response from...
 
Requires the vendor to indicate the amount of the payable.
10
Internal control over accounts payable is improved when:
A) Purchase orders show approved...
 
Purchase orders show approved prices.
11
Which of the following audit procedures most likely would provide assurance that a manufacturing...
 
Testing the entity's computation of standard overhead rates.
12
Which of the following is a control procedure that is usually applied to accounts payable?
 
Reconciliation of vendor statements with accounts payable.
13
Which of the following is the best control procedure to prevent the payment of an invoice twice?
 
Review of supporting documentation by the person signing the check.
14
Which of the following assertions is of principle concern to the auditors in the examination...
 
Completeness.
15
Which of the following best describes the specific accounts payable that are selected for confirmation?
 
Accounts with a large amount of activity regardless of their balance.
16
Which of the following is an effective control that encourages receiving department personnel...
 
Quantities ordered are excluded from the receiving department copy of the purchase order.
17
Which of the following is true about the auditors' observation of the client's physical...
 
The auditors' observation addresses the existence assertion.
18
When the auditors select a sample of items from the vouchers payable register for the last...
 
 Recorded obligations occurred prior to year-end.
19
Which of the following best describes a voucher prepared under good internal control?
A)...
 
A document prepared by Accounts Payable authorizing a cash disbursement.
20
In verifying debits to perpetual inventory records of a non-manufacturing firm, the auditor...
 
Vendors' invoices.
21
Auditors may choose not to confirm accounts payable because:
A) Confirmation obtains...
 
Other reliable external evidence to support the balances is likely to be available.
22
Which of the following is an internal control weakness for a company whose inventory of supplies...
 
The storekeeper is responsible for maintenance of perpetual inventory records.
23
Effective internal control for purchases generally can be achieved in a well-planned organizational...
 
The authority to make purchases of requisitioned materials and services.
24
Purchase cutoff procedures should be designed to test whether all inventory:
A) Owned...
 
Owned by the company was recorded.
25
To best ascertain that a company has properly included merchandise that it owns in its ending...
 
Purchase cutoff procedures.
26

Which of the following best describes the auditors' approach to the audit...

 
Test computations
27

To measure how effectively a client employs its assets, an auditor calculates...

 
Costs of Goods Sold
28

An auditor has accounted for a sequence of inventory tags and is now going...

 
Completeness
29

The auditors' search for unrecorded liabilities is completed:

A)...

 
Subsequent to the balance sheet date
30

An entity's internal control requires for every check request that there...

 
Canceled checks

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