acc 499 audit final mcqs test bank

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ACC 499 Audit Final MCQs Test Bank IF You Want To Purchase A+ Work Then Click The Link Below , Instant Download http://acehomework.com/ACC-499-Audit-Final-MCQs-Test- Bank-445667787.htm If You Face Any Problem E- Mail Us At [email protected] 1.Developing an understanding of the client's business and industry is essential to proficiency as discussed in the general standards of GAAS. (Points: 4) True False 2. Ratio analysis only involves a year-to-year comparison of account balances. (Points: 4) True False

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ACC 499 Audit Final MCQs Test Bank

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ACC 499 Audit Final MCQs Test Bank

IF You Want To Purchase A+ Work Then Click The Link Below , Instant Downloadhttp://acehomework.com/ACC-499-Audit-Final-MCQs-Test-Bank-445667787.htm

If You Face Any Problem E- Mail Us At [email protected]

1.Developing an understanding of the client's business and industry is essential to proficiency as discussed in the general standards of GAAS. (Points: 4)TrueFalse

2. Ratio analysis only involves a year-to-year comparison of account balances. (Points: 4)TrueFalse

3. Control is considered to be part of corporate governance. (Points: 4)TrueFalse

4. When control risk is assessed at a maximum level, the auditor assumes that the internal controls are reliable in preventing or detecting material misstatements. (Points: 4)TrueFalse

5. Accounting subsystems are accounting cycles composed of one or more accounting applications. (Points: 4)TrueFalse

6. Presentation and disclosure assertions imply that all transactions and balances are properly presented, disclosures represent what actually happened, and the footnote disclosures are appropriate and adequate. (Points: 4)TrueFalse

7. Vouching recorded transactions involves taking a sample from the journal and tracing them back to the source documents to ensure they occurred. (Points: 4)TrueFalse

8. Audit documentation serves as support for the financial statements. (Points: 4)TrueFalse

9. In analysis of the results of audit sampling, an auditor may determine that the sample size must be increased. (Points: 4)TrueFalse

10. The revenue cycle considered by auditors includes the sales process but not collections. (Points: 4)TrueFalse

11. Inventory is complex and typically considered a high-risk area in audits of service firms. (Points: 4)TrueFalse

12. An auditor can utilize a cross-sectional analysis for a client operating in multiple locations to identify areas of further inventory testing. (Points: 4)TrueFalse

13. Legal expenses are reviewed by auditors for possible litigation and related FAS 5 treatment. (Points: 4)TrueFalse

14. An imprest payroll account will never reach a zero balance. (Points: 4)TrueFalse

15. A turnaround document is an effective completeness control because they list essential information for further processing of the collection on account. (Points: 4)TrueFalse

16. Auditors will perform an analysis of leases using SFAS 13 criteria and other EITF statements to substantiate the accounting treatment. (Points: 4)TrueFalse

17. Contingencies are considered by the auditor in relation to the SFAS No. 5 criteria to determine whether material contingencies exist with the client and, if so, that they are properly accrued or disclosed. (Points: 4)TrueFalse

18. An example of a Type II Subsequent Event includes the settlement two months after year-end of a liability for an amount well in excess of the amount that was accrued at year-end. (Points: 4)TrueFalse

19. A report on agreed-upon procedures issued by accountants provides the lowest form of attestation assurance. (Points: 4)TrueFalse

20. The need for assurance services arises for all of the following reasons EXCEPT: (Points: 4)potential bias in providing information.closeness between a user and the organization.complexity of the processing systems.remoteness between a user and the organization.21. Which one of the following is not part of the attest process? (Points: 4)evaluating evidence against objective criteriagathering evidence about assertionsproving the accuracy of the books and recordscommunicating the conclusions reached

22. Users can reasonably expect audited financial statements to be (Points: 4)complete and contain all important financial disclosures, be free from material misstatements and be presented fairly.complete and contain all-important financial disclosures, be free from material misstatements and be presented fairly according to GAAP.complete, be accurate and be presented fairly according to GAAP.complete and contain all-important financial disclosures, be free from all misstatements and be presented fairly according to the substance of GAAP.

23. Which one of the following is not a provider of assurance services? (Points: 4)CPAsinternal auditorsgovernmental auditorsAICPA

24. The primary governing board that performs quality reviews on registered CPA firms that audit public companies is the (Points: 4)PCAOBGAOAICPAFASB

25. Management of an organization has the responsibility for all of the following except: (Points: 4)accounting principles used in financial reportingengagement of a qualified auditorinternal control over financial reportingfinancial statements and disclosures

26. The financial statement auditor must understand the client's internal control as a component of the fieldwork standards. The one of the reason for this understanding is so that the auditor may (Points: 4)provide individual comments on internal control non-compliance.become comfortable that the client will pay its audit bills.assess materiality.assess the risk of possible misstatements in the financial statements.

27. For an auditor to be independent, he or she must be independent in (Points: 4)fact.appearance.fact and appearance.either fact or appearance.

28. An auditor is concerned with materiality for which of the following reasons? (Points: 4)to assess internal controlto comply with the quality assurance standards of GAASto determine the effects of misstatements on the users of financial informationto cut down on audit procedures and testing

29. A proper system of corporate governance is one that demands (Points: 4)decision making by auditors in place of management.internal audit representation on the board of directors.audit planning to obtain competent and sufficient audit evidence.accountability back through the system to the shareholders.

30. In determining the types of activities, engagements and interactions an auditor should have with a client, the CPA and the audit firm must (select the best answer) (Points: 4)follow the rules exactly as they are written.assess all of their relationships with every client to ensure that independence is intact.focus on client satisfaction above all other considerationsrealize that ethics are only guidelines and a matter of personal judgment.

31. The AICPA Principles of Professional Conduct include (Points: 4)due professional care and supervision.scope and nature of services and adequate training.integrity and independencepublic interest, integrity and objectivity.

32. A public client is required to report material changes in internal control (Points: 4)monthly.quarterly.annually.never.

33. Programs written to accomplish specific processing tasks, such as computing payroll, are (Points: 4)application programs.operating system programs.Java scripts.access control programs.

34. The combination of which functions in an information technology environment are not necessarily a control weakness? (Points: 4)user and programming functionsdatabase administrator and data input functionsprogrammers and authorization of changesusers and certain data access

35. Backup controls, used to prevent data and software loss would include procedures to: (Points: 4)load balance in the event of heavy traffic across the network.constantly monitor the network for intrusion and attack.provide an alternate form of electricity to the corporate facilities.fail-over to a mirrored storage device in the event of interruption or loss.

36. Which one of the following is an example of an edit test for limits? (Points: 4)Only numbers are allowed to be input into the social security number field and dashes are pre-formatted.Each sales order is given an identifier that is also tagged to the receipt of goods record, the customer invoice record and the cash receipts recordThe purchasing department may order materials up to $5,000 in total before a second electronic authorization is required.Supplies may not be purchased from any vendor not authorized and existing in the vendor table.

37. The control totals used to ensure the completeness of processing in a batch processing environment include (Points: 4)record count.control totals.hash totals.all of the above.

38. The type of test used to check that no hourly employee is paid more than $400.00 in one week is: (Points: 4)an edit test.a batch control test.an output control test.none of the above.

39. Tagging and tracing might best be used to test which of the following? (Points: 4)The number of confirmations returned compared to the number of confirmations sent out.The corporate credit card is only being used for business transactions.All customer orders shipped were also invoiced and that cash was received.Quantities of product F411029 have been accurately counted in the warehouse.

40. Which one of the following would be the least persuasive type of evidence? (Points: 4)Confirmations returned by bank directly to the auditor.Letters of communication from the Securities Exchange Commission.Physical examination of perpetual inventory.General ledger in a newly developed information system.41. The primary support of an audit is (are) (Points: 4)the financial statements.the audit working papers.the audit report.the confirmation documentation.