AUDITING

/in /by

When an auditor increases the risk of material misstatement because certain control procedures were determined to be ineffective, the auditor would most likely increase the

Answer

[removed]

  

Extent of tests of details.

[removed]

  

Levels of inherent risk.

[removed]

  

Extent of tests of controls.

[removed]

  

Level of detection risk.

 


In the consideration of internal control, the auditor is basically concerned that internal control provides reasonable assurance that

Answer

[removed]

  

Controls have not been circumvented by collusion.

[removed]

  

Misstatements have been prevented or detected.

[removed]

  

Operational efficiency has been achieved in accordance with management plans.

[removed]

  

Management cannot override controls.

 

Which of the following statements concerning audit evidence is true?

Answer

[removed]

  

A client’s accounting data can be sufficient audit evidence to support the financial statements.

[removed]

  

To be competent, audit evidence should be either persuasive or relevant, but it need not be both

[removed]

  

The measure of the validity of audit evidence lies in the auditor’s judgment.

[removed]

  

The difficulty and expense of obtaining audit evidence concerning an account balance is a valid basis for omitting the test

 

Which of the following is not an objective of a well-designed system of internal control?

Answer

[removed]

  

Accurate reliable financial statements

[removed]

  

  Safeguarding  of assets.

[removed]

  

Adherence with applicable laws and regulations.

[removed]

  

Maintaining proper segregation of duties

 

 

The ultimate purpose of assessing control risk is to contribute to the auditor’s evaluation of the risk that

Answer

 

[removed]

  

Entity policies may be inappropriately overridden by senior management.

[removed]

  

Specified controls requiring segregation of duties may be circumvented by collusion.

[removed]

  

Tests of controls may fail to identify procedures relevant to assertions.

[removed]

  

Material misstatements may exist in the financial statements

 

Although the quantity and content of audit working papers vary with each particular engagement, an auditor’s permanent files most likely include

Answer

[removed]

  

Schedules that support the current year’s adjusting entries.

[removed]

  

Prior years’ accounts receivable confirmations that were classified as exceptions.

[removed]

  

Documentation indicating that the audit work was adequately planned and supervised.

[removed]

  

Analyses of capital stock and other owners’ equity accounts.

 

Although the quantity and content of audit working papers vary with each particular engagement, an auditor’s permanent files most likely include

Answer

[removed]

  

Schedules that support the current year’s adjusting entries.

[removed]

  

Prior years’ accounts receivable confirmations that were classified as exceptions.

[removed]

  

Documentation indicating that the audit work was adequately planned and supervised.

[removed]

  

Analyses of capital stock and other owners’ equity accounts.

 

Although the quantity and content of audit working papers vary with each particular engagement, an auditor’s permanent files most likely include

Answer

[removed]

  

Schedules that support the current year’s adjusting entries.

[removed]

  

Prior years’ accounts receivable confirmations that were classified as exceptions.

[removed]

  

Documentation indicating that the audit work was adequately planned and supervised.

[removed]

  

Analyses of capital stock and other owners’ equity accounts.

 

Which of the following procedures is least likely to be performed as a part of obtaining an understanding during an audit engagement of a new audit client previously audited by another CPA?

Answer

[removed]

  

Communication with the predecessor auditor.

[removed]

  

Performing analytical procedures.

[removed]

  

Obtaining confirmation of cash balances.

[removed]

  

Considering internal control.

 

An auditor traced a sample of purchase orders and the related receiving reports to the purchases journal and the cash disbursements journal. The purpose of this substantive audit procedure most likely was to

Answer

[removed]

  

Verify that cash disbursements were for goods actually received.

[removed]

  

Test whether payments were for goods actually ordered.

[removed]

  

Determine that purchases were properly recorded.

[removed]

  

Identify unusually large purchases that should be investigated further

 

Which audit assertion ensures that all recorded sales are valid?

Answer

[removed]

  

Documentation.

[removed]

  

Vouching.

[removed]

  

Existence or occurrence.

[removed]

  

Valuation or allocation

 

Which of the following did not have substantive changes under the new clarification standards?

Answer

[removed]

  

evidence

[removed]

  

internal control

[removed]

  

reporting

[removed]

  

related parties

 

 

 

 

 

 


During the process of confirming receivables as of December 31, 2007, a positive confirmation was returned indicating the “balance owed as of December 31 was paid on January 9, 2008.”  The auditor would most likely

Answer

[removed]

  

Determine whether there were any changes in the account between January 1 and January 9, 2008

[removed]

  

Determine whether a customary trade discount was taken by the customer.

[removed]

  

Reconfirm the zero balance as of January 10, 2008.

[removed]

  

Verify that the amount was received.

 

Which of the following has the lowest authoritative status but may be useful in assisting the auditor in applying the SASs?

Answer

[removed]

  

Statements on Auditing Standards

[removed]

  

Auditing Statements of Position.

[removed]

  

Journal of Accountancy articles.

[removed]

  

Auditing Interpretations

 

When auditing related party transactions, an auditor places primary emphasis on

Answer

[removed]

  

Ascertaining the rights and obligations of the related parties.

[removed]

  

Evaluating the disclosure of the related party transactions.

[removed]

  

Verifying the valuation of the related party transactions.

[removed]

  

Confirming the existence of the related parties

 

 

Which of the following is true?

Answer

[removed]

  

the auditor must document the reasons for assessing control risk at the maximum

[removed]

  

detection risk is equal to audit risk divided by the product of inherent risk and control risk

[removed]

  

the auditor has no control over detection risk, control risk or inherent risk

[removed]

  

the auditor should not accept an engagement when inherent risk is set at maximum

 

 

Which of the following controls would an auditor be least likely to review

Answer

[removed]

  

Segregation of the asset-handling and recordkeeping functions.

[removed]

  

Company policy regarding credit and collection efforts.

[removed]

  

Cost records classified by date of product introduction

[removed]

  

Authorization of additions to plant and equipment

 

 

When tests of controls reveal that controls are not operating as anticipated, it is most likely that the assessed level of the risk of material misstatement will

Answer

[removed]

  

Be less than the planned level.

[removed]

  

Equal the planned level.

[removed]

  

Be greater than the planned level.

[removed]

  

Be less than the actual level.

 

Which of the following gives, as Dr.

 described, a “warm and fuzzy feeling” when an auditor determines that the client has

Answer

[removed]

  

a requirement that two signatures are required on checks

[removed]

  

a budget and variance analysis system

[removed]

  

an annual quality control review

[removed]

  

an internal audit staff

 

Of the following, which is the least persuasive type of audit evidence?

Answer

[removed]

  

Documents mailed by outsiders to the auditor.

[removed]

  

Correspondence between auditor and vendors.

[removed]

  

Copies of sales invoices inspected by the auditor.

[removed]

  

Computations made by the auditor

 

 

 

A weakness in internal control over recording retirements of equipment may cause an auditor to

Answer

[removed]

  

Review the subsidiary ledger to ascertain whether depreciation was taken on each item of equipment during the year.

[removed]

  

Select certain items of equipment from the accounting records and locate them in the plant.

[removed]

  

Inspect certain items of equipment in the plant and trace those items to the accounting records.

[removed]

  

Trace additions to the “other assets” account to search for equipment that is still on hand but no longer being used

 

If internal control is properly designed, the same employee should not be permitted to

Answer

[removed]

  

Sign checks and cancel supporting documents.

[removed]

  

Receive merchandise and prepare a receiving report.

[removed]

  

Prepare disbursement vouchers and sign checks.

[removed]

  

Initiate a request to order merchandise and approve merchandise received.

 

 

When a CPA is approached to perform an audit for the first time, the CPA should make inquiries of the predecessor auditor.  This is a necessary procedure because the predecessor may be able to provide the successor with information that will assist the successor in determining

Answer

[removed]

  

Whether the predecessor’s work should be utilized.

[removed]

  

Whether the company follows the policy of rotating its auditors.

[removed]

  

 

Whether in the predecessor’s opinion internal control of the company has been satisfactory.

[removed]

  

Whether the engagement should be accepted.

 

 

Which of the following is least likely to be a procedure used for planning/acceptance of an engagement?

Answer

[removed]

  

Contacting the predecessor auditor

[removed]

  

communicating with the client’s attorney and other third parties

[removed]

  

review financial statements

[removed]

  

determine internal control risk

 

Which of the following is not an interrelated component of internal control?

Answer

[removed]

  

Control activities

[removed]

  

Risk assessment

[removed]

  

Monitoring

[removed]

  

Management integrity

 

 

An auditor’s decision either to apply analytical procedures as substantive procedures or to perform tests of transactions and account balances usually is determined by the

 

Answer

[removed]

  

Availability of data aggregated at a high level.

[removed]

  

Relative effectiveness and efficiency of the tests.

[removed]

  

Timing of tests performed after the balance sheet date.

[removed]

  

Auditor’s familiarity with industry trends

 

Factors or components of the control environment include all except

Answer

[removed]

  

Organizational structure

[removed]

  

Human resources

[removed]

  

Integrity and ethical values

[removed]

  

All of the above are factors

 

Which of the following is not a typical analytical procedure?

Answer

[removed]

  

Study of relationships of the financial information with relevant nonfinancial information.

[removed]

  

Comparison of the financial information with similar information regarding the industry in which the entity operates.

[removed]

  

Comparison of recorded amounts of major disbursements with appropriate invoices.

[removed]

  

Comparison of current year’s financial statement with last years

 

 

Failure to detect material dollar misstatements in the financial statements is a risk which the auditor primarily mitigates by

Answer

[removed]

  

Performing substantive procedures.

[removed]

  

Performing tests of controls.

[removed]

  

Assessing internal control.

[removed]

  

Obtaining a client representation letter.

 

 

 

"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"

algebra homework

/in /by

I have ten question that I need the step by step answers. Here a copy of the homework I need to have this done my 11/11/12 7pm eastern time. Will pay 20.00 for the ten question.

 

"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"

courses

/in /by

Microeconomics and International Business course completion

 

"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"

Where would you find the thickest abyssal plain sediment

/in /by
Where would you find the thickest abyssal plain sediment
 

"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"

Project Two for Microeconomics Much discussion has taken place lately concerning the precipitous financial cliff that the U. S. Economy seems…

/in /by
Project Two for Microeconomics Much discussion has taken place lately concerning the precipitous financial cliff that the U. S. Economy seems to be headed towards.. (This is more commonly referred to as the FISCAL CLIFF.) Congress is trying to reach an agreement before December 31st to avoid possible financial chaos. Some of the many implications that this crisis will have on the United States, as well as globally, centers on: Consumer confidence, unemployment, Proposed business mergers New business startups The news media has a glut of information on these topics and many others as well as consequences that may befall the economy in 2013 and the years following. Choose one of the topics listed above or another one of your own choosing as long as it pertains to a topic we have discussed in class. (Hint: Think Monopoly, Oligopoly, Financial Markets, Demand and Supply, competition, etc.). After you have selected a topic, research current information on it from resources such as: USA Today; Wall Street Journal; the Boston Globe; the Economist magazine, Time magazine, Newsweek magazine, and internet sources of good reputation!! Select any two of these references that contains information on your topic. Read what they say about your topic and then write a one page summary, in your own words, of what that periodical or resource reports. Do not copy word for word. You will do this for each of the two sources of information on the same topic. The report should contain the following format: Page One. Your name The name of the two information sources; e.g Time Magazine,; the Boston Globe, USA Today, Wall Street Journal. Include the date of the publication. A photo copy of the first paragraph of each of the two articles. Do not copy the whole article. Be sure to include the name of the author and the title of the information. Page Two: A two paragraph summary of the first source. Please type and double-space. Each paragraph should contain four to six sentences. At the top write the name of your source. Page Three: A two paragraph summary of the second source. Be sure to include the name of it. Please try to limit the project to three pages. This report will be due on the day of the final exam: Thursday, December 20th @ 8:00 a.m. No emails will be accepted
 

"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"

Term paper 2500 words

/in /by

Who’s able to silver an A paper and (on time? 

 

Term Paper – Each student will prepare a term paper based on a review of the environmental health marketplace. The paper will include a brief description of the student’s understanding of career options and employment opportunities in the field.  In addition students are encouraged to research emerging opportunities and trends in the field.  The paper is due on or before November 14 and must include a minimum of five references and 2500 words.

 

"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"

econimics

/in /by

Need help with mid term in econ 100

 

"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"

Ethical Challenges

/in /by

See attached problem scenario A to learn more about Bill and Joe’s relationship. This scenario will provide you with key information to help formulate your answers.

 

Joe must decide how he will answer Bill’s invitation to join him and his family on their yacht. Complete the following in a paper of 2–3 pages:

 

  • How should Joe respond to Bill’s invitation?
  • What ethical theory supports how you think Joe should respond to this invitation?
  • Why would you use this theory?
  • What might others with a different view than yours say in this situation?
  • How would you refute those opposing perspectives?
  • Is there a compromise or creative solution to this problem?
    • If so, what is it?
    • Why is it feasible?

    APA Format

 

"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"

intellectual property, international law and the role of administrative agencies in regulating and enforcing laws

/in /by

All that is needed is at least 3 paragraphs

 

Mega Beverage Corporation will launch its new twelve-hour energy drink called the Viva in a few weeks. The company suggests a retail price of $3 for a 3-ounce bottle; however, the retail buyers must agree not to sell the drink for less than $2.75. Although Mega offers the product for sale to retailers at the same price, large discount stores, such as Value-Mart, and businesses that cater to teenagers are often offered free cases of the product if they purchase a certain amount of Viva.

Mega plans to sell Viva in South America, but they are not sure if the product will require any special licensing or government approvals. Your brother-in-law says that he knows someone in the South American government that could help you bypass any regulations for a small fee.

 

Nicole is a mother of two young boys. She works full time as an accounts receivable clerk and takes classes online to finish her degree in public administration. While glancing at the television late one night after putting the kids to bed, she hears about a new energy drink that helps people stay awake longer with more energy. The commercial promotes the supplement as containing natural ingredients, which include niacin, vitamin B6, vitamin B12, and a blend of various elements, including caffeine; however, the amount is not specified……(The rest is in the attachment)

 

  • What violations has Mega Beverage Company committed in its dealings with the retailers?
  • Is Mega Beverage Company’s current plan to distribute products in South America legal and ethical? Why or why not?
  • Which are the two government agencies that might be able to assist Nicole? How would they be able to help Nicole?
  • How would an administrative agency handle Nicole’s complaint? What would be the possible challenges by Mega Beverage Company and the possible outcome?
  • In one paragraph, summarize the case you found related to energy drinks or deceptive advertising of other products.
 

"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"