9) What critical event must take place before goods can be shipped in order to assure payment can be reasonably expected?

A) determination of correct delivery address

C) matching of shipping document with sales invoice

D) receipt of sales order from the customer

10) Before goods are shipped on account, a properly authorized person must

C) approve the customer's credit.

D) verify that the unit price is accurate.

11) Which accounts are involved in the sales class of transactions?

D) accounts receivable and sales

A) accounts receivable and sales returns and allowances

B) cash and allowance for uncollectible accounts

C) sales allowances and accounts receivable

33) The accurate recording of sales transactions concerns all of the following except for

A) proper credit authorization.

B) shipping the amount of goods ordered.

C) accurately billing for the amount of goods shipped.

D) accurately recording the amount billed in the accounting records.

34) Which of the following is a correct statement regarding analytical procedures?

B) Auditors should also compare the results of their analytical procedures to budgets and industry trends.

A) If an auditor identifies a possible misstatement in sales using analytical procedures, accounts payable will be the likely offsetting misstatement.

C) If sales are overstated, the income statement will be incorrect, but the balance sheet will be correct.

D) If an analytical procedure uncovers an unusual fluctuation, the auditor must assume fraud is involved.

15) The understatement of sales and accounts receivable is best uncovered by

C) substantive tests of transactions for shipments made but not recorded.

B) testing the aged accounts receivable trial balance.

D) substantive tests of transactions for bad debts.

16) Which of the following audit procedures would not likely detect a client's decision to pledge or factor accounts receivable?

A) a review of the minutes of the board of directors' meetings

D) examination of correspondence files

17) When do most companies record sales returns and allowances?

B) during the accounting period in which the return occurs

A) during the month in which the sale occurs

C) whenever the customer contacts the company regarding the credit

D) during the month after the sale occurs

28) Cutoff misstatements can occur for

A) Sales Sales returns and allowances Yes Yes

B) Sales Sales returns and allowances No No

C) Sales Sales returns and allowances YesNo

D) Sales Sales returns and allowances No Yes

30) Which of the following accounts is not part of the acquisition and payment cycle?

C) sales returns and allowances

D) property, plant, and equipment

21) Which of the following is not one of the classes of transactions in the acquisition and payment cycle?

B) acquisition of goods and services

D) purchase returns and allowances and purchase discounts

22) Which of the following accounts is not included in the acquisitions class of transactions?

C) sales discounts or purchase discounts

23) An auditor is gathering evidence on the completeness assertion. To do so, she performs a test to verify that all goods received by the company have been recorded properly. The document population for this test would consist of all

D) cash disbursements for accounts payable.

24) Which of the following is not an accurate statement regarding the acquisition and payment cycle?

D) The accounting department should be responsible for receiving goods and preparing the receiving report.

A) The personnel in the receiving department should be independent of the storeroom personnel.

B) Goods received should be physically controlled from the time of their receipt until their use or disposal.

C) Accounting records should transfer responsibility for the goods each time they are moved.

28) Which of the following accounts is not associated with the acquisition and payment cycle?

B) property, plant and equipment

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

C) estimated liability for warranties

50) Which is not one of the tests that would be used in the audit of equipment, depreciation expense, and accumulated depreciation?

B) Send confirmations to the sales personnel who sold the equipment to the company.

A) Verify the ending balance in the asset account.

C) Perform substantive analytical procedures.

D) Verify current year acquisitions.

51) One of the primary objectives in examining the repairs and maintenance accounts is to obtain evidence that

A) expenditures of equipment have not been charged to expense.

B) the actual amount recorded is the same as the budgeted amount.

C) expenditures for equipment have been recorded in the proper period.

D) revenue expenditures made on behalf of equipment have been recorded in the proper period.

33) Receipt of ordered materials by the receiving department will generate the completion of a form called the

D) inventory acquisition summary.

34) ________ is normally characterized as a difficult and complex account to audit.

A) Property, plant and equipment

35) Inventory is a complex area to audit for all except which of the following reasons?

D) Inventory valuation includes few estimates.

35) Inventory is a complex area to audit for all except which of the following reasons?

B) There are several acceptable valuation methods and some entities use different methods for different types of inventory.

C) Inventory is often the largest account on the balance sheet.

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

D) acquisition of raw materials for production.

A) receipt of a customer's order.

B) completion of production of a customer's order.

C) initiation of production of a customer's order.

37) ________ accumulate costs by individual jobs as material is issued into production and labor costs are incurred.

A) Just-in-time production systems

48) The main difference between job order and process costing systems is that

B) one accumulates costs by individual jobs and the other by particular processes.

A) one accumulates costs by materials issued and the other by labor incurred.

C) one emphasizes costs accumulated in completed products and the other emphasizes costs associated with work-in-process.

D) one emphasizes costs adding value to the product and the other emphasizes costs incurred because of waste, scrap, and obsolescence.

50) From which of the following evidence-gathering audit procedures would an auditor obtain most assurance concerning the existence of inventories?

A) observation of physical inventory counts

B) written inventory representations from management

C) confirmation of inventories in a public warehouse

D) auditor's recomputation of inventory extensions

4) Which of the following departments is most likely responsible for pay rate changes and changes in deductible amounts for employees?

A) general accounting department

5) The payroll and personnel cycle ends with which of the following events?

C) existing employees submitting requests for payment for work performed

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

C) reconciliation of payroll account

B) timekeeping and payroll preparation

D) human resources and employment

7) Which department should be authorized to add and delete employees from the payroll or change pay rates and deductions?

C) the human resources department

40 câu đầu KTTC1

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MULTIPLE CHOICE QUESTION

30 sec • 1 pt

1) Shown below (1 through 5) are the five types of tests which auditors use to determine whether financial statements are fairly stated. Which three are substantive tests?
1. risk assessment procedures
2. tests of controls
3. substantive tests of transactions
4. substantive analytical procedures
5. tests of details of balances

A) 1, 2, and 3

B) 3, 4, and 5

C) 2, 3, and 5

D) 2, 3, and 4

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

2) The purpose of tests of controls is to provide reasonable assurance that the

A) accounting treatment of transactions and balances is valid and proper.

B) internal control procedures are functioning as intended.

C) entity has complied with GAAP disclosure requirements.

D) entity has complied with requirements of quality control.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

3) In the context of an audit of financial statements, substantive tests are audit procedures that

A) may be eliminated under certain conditions.

B) are designed to discover significant subsequent events.

C) are designed to test for dollar misstatements.

D) will increase proportionately with the auditor's reliance on internal control.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

4) Risk assessment procedures are performed by auditors during an audit in order to

A) determine the risk of material misstatement in the financial statements.

B) determine the amount of testing of internal control.

C) determine the extent of testing of details of balances.

D) determine the extent of testing of transactions.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

5) Which of the following is an account that is not affected by the sales and collection cycle?

A) cash

B) accounts receivable

C) allowance for doubtful accounts

D) accounts payable

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

6) The auditor's objectives for the sales and cash collections activities when the client is primarily an e-commerce business as compared to a "brick and mortar" business are

A) unchanged.

B) expanded.

C) mitigated.

D) decreased.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

7) Which of the following is an account that is not affected by the sales and collection cycle?

A) cash

B) accounts receivable

C) allowance for doubtful accounts

D) accounts payable

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40 câu đầu KTTC1

2) The purpose of tests of controls is to provide reasonable assurance that the

3) In the context of an audit of financial statements, substantive tests are audit procedures that

4) Risk assessment procedures are performed by auditors during an audit in order to

5) Which of the following is an account that is not affected by the sales and collection cycle?

6) The auditor's objectives for the sales and cash collections activities when the client is primarily an e-commerce business as compared to a "brick and mortar" business are

7) Which of the following is an account that is not affected by the sales and collection cycle?

8) The auditor's objectives for the sales and cash collections activities when the client is primarily an e-commerce business as compared to a "brick and mortar" business are

9) What critical event must take place before goods can be shipped in order to assure payment can be reasonably expected?

10) Before goods are shipped on account, a properly authorized person must

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