Auditing

Which of the following controls would most likely reduce the risk of diversion of customer receipts by client employees?

To provide assurance that each voucher is submitted and paid only once, the auditors most likely would examine a sample of paid vouchers and determine whether each voucher is:

In testing controls over cash disbursements, the auditors most likely would determine that the person who signs the checks also

to gather evidence regarding the balance per bank in a bank reconcilliation, the auditors would examine:

You have been assigned to the year end audit of a financial institution and are planning the timing of audit procedures relating to cash, You decide that it would be preferable to:

Which of the following procedres would the auditors most likely perform to test controls relating to management's assertion about the completeness of cash receipts for cash sales at a retail outlet?

Reconcilliation of the bank account should NOT be preformed by an individual who also

The auditors suspect that a clients casheir is misapropriating cash receipts for personal use by lapping customer checks received in the mail. In attempting to uncover this embezelment scheme, the auditors would most likely compare the

In order to gaurd against the misappropriation of company owned marketable securities, which of the following is the best couse of action that can be taken by a company with a large portfolio of marketable securites

Hall compnay had large amounts of funds to inverst on a temporary basis. the board of directors decided to purchse securities and derivatives and assigned the future purchas and sale decisions to a responsible finanacial executive. The best person or persons to make periodic review of the investment activity would be

the auditors who physically examine securities should insist that a client representative be present in order to:

The best way to verify the amounts of dividend revenue received during the year is:

Which of the following is least likely to be considered and inherent rick relating to receivables and revenues

which if the following would provide the most assurance concerning the valuation of accounts receivable

Which of the following is most likely to be an example of fraudulent financial reporting relating to sales

Which of the following is an example of misappropriation of assets relating to sales

There is presumption that auditors will confirm accounts receivable unless the audtitors' assessment of the risk of material misstatement is low

which of the following is NOT among the criteria that ordinarily exist for revenue to be recognized

to determine that all sales have been recorded, the auditors would select a sample of transactions from the

Which of the following would most likely be detected by an auditor's review of the client's sales cutoff?

to test the existence assertion for recorded receivables, the auditors would select a sample from the

Which assertion relating to the sales is most directly addressed when tha auditors compare a sample of shipping documents to related sales invoices

Cooper, CPA, is auditing the financial statements of a small rural municipality. The receivable balances represent residents' delinquent real estate taxes. Internal control at the municipality is weak. to determine the existence of the accounts receivable balances at the balance sheet date, Cooper would most likely

Identify the control that is most likely to prevent the concealment of a cash shortage resulting from teh improper writeoff of a trade account receivable

Which of the following is least likely to be among the auditors' objectives in the audit of inventories and COGS

the receiveing department is least likley to be responsible for the

the document issued by a common carrier acknowledging the receipt of goods and setting the forth provisions of the transportation agreement is the

which of the following should be included as a part of inventory costs of a manufacturing company

the organization established by congress to narrow the options in cost accounting that are available under generally accepted accounting principles is the

When a primary risk related to an audit is possible overstated inventory, the assertion most directly related is

instead of taking a physical inventory count on the balance-sheet date, the client may take physical counts prior to the year-end if internal control is adequate and

The auditors analytical procedres will be facilitated if the client

When perpetual inventory records are maintained in quantities and in dollars, and internal conrol is weak, the auditor would probably

Which of the following is the best audit procedure for the discovery of damaged merchandise in a client's ending inventory

Company does not make an annual physical count of year-end inventories, but instead makes weekly test counts on the basis of a statistical plan. During the year, CPA observes such counts as she deems necessary and is able to satisfy herself as the the reliability of the client's procedures. In reporting the results of her examination

the primary objective of a CPA's observation of a clients physical inventory count is to

to assure accountability for fixed asset retirements, management should implement an internal control that includes

the auditors may conclude that depreciation charges are insuffucient by noting

which of the following is an internal control weakness related to factory equipment

which of the following accouts should be reviewed by the auditors to gain reasonable assurance that additions to property plant and equipment are not understated

the auditors are most likely to seek information from teh plant manager with respect to the

to strengthen internal control over the custody of heavy mobile equipment, the client would most likely institute a policy requiring a periodic

which of the following statements is not typical of property plant and equipment as compared to most current asset accounts

for the audit of a continuing nonpublic client, the emphasis of the testing for property account is on

audit of which of the following accounts is most likely to reveal evidence relating to recorded retirements of equipment

an effective procedure for identifying unrecorded retirements of equipment is to

which of the following is not an overall test of the annual povision for depreciation expense

the audit of intangible assets typically involves

Which of the following procedures is least likely to be completed before the balance sheet date

an audit of the balances in the accounts payale account is ordinarily not designed to

which of the following is the best audit procedure for determining the existence of unrecorded liabilities

Audtitor confirmation of accounts payable balances at the balance sheet date may be unecessary because

a client erroneously recorded a large purchase wice. Which of the following internal control measures would be most likely to detect this error in a timely and efficient manner

for effective internal control, the accounts payable department should compare the information n each vendors invoice with the

when confirming accounts payable, the approach is most likely to be one of

in an audit the valuation of year-end accounts payable is most likely to be addressed by

ordinarily, the most significant assertion relating to accounts payable is

The least likely approach in auditing managements estimate relating to an accrues liability is to

to determine that each voucher is submitted and paid only once, when a payment is approved, supporting documents should be canceled by the

in performing a test of controls, the auditors vouch a sample of entries in the purchases journal to the supporting documents. Which assertion would this test of controls most likely test

Which of the following is least likely to be an audit objective for debt

the auditors would be most likely to find unrecorded long-term liabilities by analyzing

a likely reason that considerating of client complieance with debt provisions is important to an audit is that violation of such debt provisions may affect the total recorded

a transfer agent and a registrar are most likely to provide the auditor with evidence on

the audit procedure of conformation is least appropriate with respect to

an auditir is most likely to trace treasury stock purchase transactions to the

In the continuing audit of a manufacturing company of medium size, which of the following areas would you expect to require the least amount of audit time

the auditors can best verify a client's bond sinking fund transactions and year-end balance by

the auditors program for the examination of long-term debt should include steps that require the

all corporae capital stock transactions should ultimately ne traced to the

which of the following is most likely to be an audit objective in the audit of owners' equity

in an audit of a sole proprietorship, a common difficulty is the lack of

which of the follwoing is least likely to be considered a substantive procedure relating to payroll

which of the following is the best way for the auditors to determine that every name on a company's payroll is that of a bona fide employee presently on the job

as a result of analytical procedures, the independent auditors determine that the gross profit percentage has declined from 30 percent in the preceding year to 20 percent in the current year. The auditors should

when auditing the statement of cash flows, whcih of the following would an auditor not expect to be a source of reciepts and payments

the search fro unrecorded liabilities for a public company includes procedures usually performed through then

The aggregated misstatement in the financial statements is made up of

a possible loss, stemming from past events that will be resolved as to existence and amounts, is referred to as a

which of the following is most likely to be considered a type 1 subsequent event

the clients representation letter is formally dated when

which of the following procedures is most likely to be included in the final review stage of an audit

subsequent to the issuance of the auditors report the auditor became aware of facts existing at the report date that would have affected the report had the auditor then been aware of such facts, after determining that the information is reliable, the auditor should next

which of the following events occuring on jan 5 20x2 is most likely to result in an adjusting entry to the 20x1 statements

a material departure from generally accepted accounting principles will result in auditor consideration of

the auditors report should be dated as of the date the

in an audit report on combined financial atatements, reference to the fact that a portion of the audit was performed bu a compnent auditor is

assume that the opinion paragraph of an auditors' report begins as follows: "with the explaination given in Note 6... the financial statements referred to above present fairly... " this is

the auditors who wish to draw reader attention to a financial statement note disclosure on significant transactions with related parties should disclose this fact in

what type or types of audit opinion are appropriate when financial statements are materially and perversely missstated

which of the following ordinarily involves the addition of an emphasis of matter paragraph to an audit report

an audit report for a public client indicated that the audit was performed in accordance with

An audit report for a public client indicates that the audit was performed in conformity with

When the properly disclosed in the finacial statements, the likely result of substantial doubt about the ability of the client to continue as a going concern is the issuance of which of the following audit opintions

a change in accounting principles that the auditors believe is not justified is likely to result in which of the following types of audit opinions

which of the following is least likely to result in inclusion of an emphasis of matter paragraph in an audit report

in an integrated audit, which of the following must the auditors communicate to the audit committee

in an integrated audit, which of the follwoing leads to an adverse opnion on internal control

in an integrated audit, which of the following must be communicated by management to the audit committee

which of the following is most likely to be considered a material weakness in internal control

which of the following is defined as a weakness in internal control that allows a reasonable posibility of a misstatement that is material

the auditors identified a material weakness in internal control in august. the client was informed and the client corrected the material weakness prior to year end, the auditors concluded that management eliminated the material weakness prior to year end. the appropriate audit report on internal control is

which of the following need not be included in management's report on internal control of the sarbanes oxley act

management's documentation of internal control ordinarily should include information on

a material weakness is a control deficiency that results in a reasonable possibility that a misstatement of at least what amount will not be prevented or detected

a procedure that involves tracing a transaction from origination through the company's financial report is referred to as a

which of the following is not a typical question asked during a walk through

an audit of internal control over financial reporting ordinarily assesses internal control

ehich of the following is not typically performed when the auditors are performing a review of client financial statements

which of the following must be obtained in a review of a nonpublic company

a CPA who is not independent may perform which of the following services for a nonpublic company

when performing a review of a nonpublic company, which is least likely to be included in auditor inquires of management members with responsibility for financial accounting matters

the proper report by an auditor relating to summarized financial statements includes

concerning interin quarterly financial statements, management of public companies

proper compilation report on financial statements that omit note disclosures

which of the following forms of accountant association always lead to a report intended solely for ceritan specified parties

which assertion is generally most difficult to attest to with respect to personal financial statements

fiancial statements prepared following which of the following are most likely to be considered a special purpose financial reporting framework

In which of the following reports should a CPA not express negative assurance

comfort letters to underwriters are normally signed by the

a report on the attestation engagement should

when an accountiat examines a financial forecast that fails to disclose several significant addumptions used to produce the forecast, the accountant should describe the assumptions in the accountants report and issue an

which of the following is not an objective of a CPA's examination of a clients MD and A

A CPA's report relating to a SysTrust engagement is most likely to include

when performing an examination, if a CPA finds one r more significant assumptions are not reasonable for a forecast,t he most appropriate report is

the accounting profession is currently developing assurance services related to which of the following international information formats

When reporting on a companies compliance with a law, the CPAs may report on

Which is least likely

which of the following is least likely to be the subject matter of a attestation engagement

which of the following is not a basic type of attestation engagement

the assurance service being developed that address user and perparer needs regarding issues of security, availability, processing integrity, confidentiality, and privacy within e-commerce and other systems are referred to as

Internal auditing can be best described as

the independence of the internal auditing department will most likely be assured if it reports to the

when performing an operational audit, the purpose of a preliminary survey is to

operational auditing is primarily oriented toward

which of the following bodies promulgates standards for audits of federal financial assistance programs

as compared to an audit in accordance with GAAS, an audit in accordance with Generally accepted Government auditing standards requires the auditors to

in compliance attestation engagement, CPAs may address and organizations

the portion of internal control most directly related to a CPAs engagement to attest to complaince with laws and regulations is

when issuing an unqualified audit report in compliance with attestation engagement, the CPA may report on

when issuing a qualified audit report in a compliance attestation engagement, the CPA may report on

an important aspect of performing an audit in accordance with the SIngle audit act is to identify

the organization that administers the certified internal auditor program is the