Chs 10, 11, And 13

38 Questions  I  By Pimen103

  
Changes are done, please start the quiz.


Question Excerpt

Removing question excerpt is a premium feature

Upgrade and get a lot more done!
1.  An inventory turnover analysis is useful to teh auditor because it may detect...
A.
B.
C.
D.
2.  A client's procurement system ends with the assumtion of a liability and the evenual payment of the liability. Which of the following best describes the auditor's primary concern with respect to liabilities resulting from the procurement system?
A.
B.
C.
D.
3.  To achieve good internal control, which department should perform the activities of matching shipping documents with sales orders and preparing daily sales summaries?
A.
B.
C.
D.
4.  According to the SEC's SAB No. 101, which of the following is not necessary for revenue recognition?
A.
B.
C.
D.
5.  Which of the following procedures would an auditor most likely perform in searching for unrecorded payments?
A.
B.
C.
D.
6.  When perpetual inventory records are maintained in quantities and in dollars and internal control over inventory is weak, the auditor would probably...
A.
B.
C.
D.
7.  Which of the following is the best argument against the use of negative accounts receivable confirmations?
A.
B.
C.
D.
8.  In auditing accounts payable, an auditor's procedures most likely would focus primarily on management's assertion of...
A.
B.
C.
D.
9.  Which one of the following would the auditor consider to be an incompatible operation if the cashier receives remittances from the mailroom?
A.
B.
C.
D.
10.  An auditor will usually trace the details of the test counts made during the observation of the physical inventory count to a final inventory schedule. This audit procedure is undertaken to provide evidence that items physically present and observed by the auditor at the time of the physical inventory count are...
A.
B.
C.
D.
11.  The audit of year-end physical inventories should include steps to verify that the client's purchases and sales cutoffs were adequate. The audit steps should be designed to detect whether merchandise included in the physical count at year-end was not recorded as a...
A.
B.
C.
D.
12.  Immediately upon receipt of cash, a responsible employee should...
A.
B.
C.
D.
13.  Tracing bills of lading to sales invoices provides evidence that...
A.
B.
C.
D.
14.  Which of the following controls most likely would be effective in offsetting the tendency of sales personnel to maximize sales volume at the expense of high bad debt write-offs?
A.
B.
C.
D.
15.  To determine whether accounts payable are complete, an auditor performs a test to verify that all merchandise received is recorded. The population of documents for this test consists of all...
A.
B.
C.
D.
16.  Tests designed to detect credit sales made after the end of the year that have been recorded in the current year provide assurance about management's assertion of...
A.
B.
C.
D.
17.  Auditors may use positive and/ or negative forms of confirmation requests for accounts receivable. Which of the following statements is true regarding the auditor's use of confirmations?
A.
B.
C.
D.
18.  The safeguarding of inventory most likely includes...
A.
B.
C.
D.
19.  For effective internal control, the accounts payable department should compare the information on each vendor's invoice with the...
A.
B.
C.
D.
20.  Which of the following departments typically approves purchase requisitions?
A.
B.
C.
D.
21.  Auditors are most likely to ensure that no production activity is scheduled prior to...
A.
B.
C.
D.
22.  The mailing of disbursement checks and remittance advices should be controlled by the employee who...
A.
B.
C.
D.
23.  An auditor tests an entity's policy of obtaining credit approval before shipping goods to customers in support of management's financial statement assertion of...
A.
B.
C.
D.
24.  Purchase cutoff procedures should be designed to test whether or not all inventory...
A.
B.
C.
D.
25.  An auditor most likely would make inquiries of production and sales personnel concerning possible obsolete or slow-moving inventory to support management's financial statement assertion of...
A.
B.
C.
D.
26.  Which of the following most likely would give the most assurance concerning the valuation assertion for accounts receivable?
A.
B.
C.
D.
27.  Shipping orders are forwarded from the revenue process to...
A.
B.
C.
D.
28.  A client maintains perpetual inventory records in both quantities and dollars. If the assessed level of control risk is high, an auditor would probably...
A.
B.
C.
D.
29.  Which of the following auditing procedures most likely would provide assurance about a manufacturing entity's inventory valuation?
A.
B.
C.
D.
30.  An auditor generally tests physical security controls over inventory by...
A.
B.
C.
D.
31.  An auditor selected items for test counts while observing a client's physical inventory. The auditor then traced the test counts to the client's inventory listing. This procedure most likely obtained evidence concerning management's assertion of...
A.
B.
C.
D.
32.  Which of the following best describes the occurrence assertion for inventory?
A.
B.
C.
D.
33.  The accounts payable department receives the purchase order form to accomplish all of the following except to:
A.
B.
C.
D.
34.  Key segregations of duties in the inventory management process include all of the following except separating...
A.
B.
C.
D.
35.  Alpha Company uses its sales invoices for posting perpetual inventory records. Inadequate control activities over the invoicing function allow goods to be shipped that are not invoiced. The inadequate control activities could cause an...
A.
B.
C.
D.
36.  Which of the following is the most effective control activity to detect vouchers prepared for the payment of goods that were not received?
A.
B.
C.
D.
37.  When searching for unrecorded liabilities at year-end, the population identified for sampling would be...
A.
B.
C.
D.
38.  Tracing copies of sales invoices to shipping documents will provide evidence that all...
A.
B.
C.
D.
Back to top


to post comments.

Removing ad is a premium feature

Upgrade and get a lot more done!
Take Another Quiz