ACC 492 Wk 5 Final Exam

Question 1

Which of the following business functions is not considered to be part of the acquisitions class of transactions?

Question 2

Which of the following balance-related audit objectives typically is assessed as having high inherent risk for cash?

Question 3

You are auditing Rodgers and Company. You are aware of a potential loss due to non-compliance with environmental regulations. Management has assessed that there is a 40% chance that a $10M payment could result from the non-compliance. The appropriate financial statement treatment is to:

Question 4

Which of the following is a business function related to sales returns and allowances?

Question 5

Some companies have customers send payments directly to an address maintained by a bank. This is called a(n) ________ system.

Question 6

The word below that best explains the relationship between required sample size and the acceptable risk of incorrect acceptance is:

Question 7

Which of the following is not one of the business functions for the payroll and personnel cycle?

Question 8

The audit procedure that requires an auditor to “foot the acquisition schedule” relates to which balance-related audit objective?

Question 9

The total of the individual employee earnings in the payroll master file should equal the total:

Question 10

The computer-generated file which records acquisitions, disbursements and allowances for each vendor is the:

Question 11

Which of the following does not have to be considered in determining the initial sample size of a test of details?

Question 12

The computer file used for recording payroll transactions for each employee and maintaining total wages paid for the year to date is the:

Question 13

Auditors are especially concerned with three aspects of internal control for the sales and collection cycle. Which of the following is not one of their major concerns?

Question 14

For audit evidence to be compelling to the auditor it must be sufficient and appropriate. Which statement below is not correct regarding the appropriateness of audit evidence?

Question 15

Which of the following expenses is not typically evaluated as part of the audit of the acquisition and payment cycle?

Question 16

A document used by organizations to establish a formal means of recording and controlling acquisitions which usually contains a package of documents about the acquisition is the:

Question 17

Because cash is the most desirable asset for people to steal, it has a higher:

Question 18

The two primary classes of transactions in the sales and collection cycle are:

Question 19

Which of the following is an analytical procedure to determine if there is idle equipment or equipment that was disposed of but not written off?

Question 20

Which of the following audit procedures would be the most correct in determining the audit objective of existence for the equipment account in the fixed asset master file?

Question 21

Master files, spreadsheets, and reports that accumulate material, labor, and overhead as the costs are incurred are:

Question 22

Which of the following accumulate costs by individual jobs as material is issued into production and labor costs are incurred?

Question 23

In addition to confirming bank balances of your audit client, a bank confirmation would normally contain:

Question 24

​Which of the following is not explicitly stated in the standard unqualified audit report?

Question 25

Which of the following groups has the responsibility for identifying and deciding the appropriate accounting treatment for recording or disclosing contingent liabilities?

Question 26

Smaller privately held companies may not maintain an accounts payable master file by vendor. These companies pay on the basis of:

Question 27

You are auditing Manufacturing Company and testing the audit related objective of completeness for the equipment accounts. Which of the following audit procedures is most likely to achieve your objective?

Question 28

Which of the following is a contract between a carrier (e.g., a trucking company) and the seller of goods that dictates the details surrounding the shipment of goods?

Question 29

In most manufacturing companies, the inventory and warehousing cycle begins with the:

Question 30

A commitment is best described as: