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Soal EY

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Professional Development

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Soal EY
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50 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

In establishing the existence and ownership of an investment held by corporation in the form of publicity traded stock, an auditor should inspect the securities or

Determine that investment is carried at the lower of cost or market

inspect the audited financial statements of the investee company

obtain written representation from management confirming that the securities are properly classified as trading securities

confirm the number of shares owned that are held by an independent custodian

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The sale of a depreciable asset resulting in a loss, indicating that the proceeds from the sale were

Less than book value

Greater than book value

Greater than cost

Less than current market value

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following features of preferred stock makes it more like a debt than an equity instruments?

Non-Cummulative

Voting

Participating

Redeemable

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following comparisons will be most useful to an auditor in auditing and entity's income and expense accounts?

Current year warranty expense to current year contingent liabilities

Current year revenue to budgeted current year revenue

Prior year accounts payable to current year accounts payable

Prior year payroll expense to budgeted current year payroll expense

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

As general IT controls weaken, the auditor is most likely to

expand testing of automated application controls used to reduce control risk to cover greater portions of the fiscal year under audit

Ignore obtaining knowledge about the design of general IT controls and whether they have been implemented

reduce testing of automated application controls done by the computer

increase testing of general IT controls to conclude whether they are operating effectively

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

In May 2015, ABC Inc. became involced in litigation. As a result, it is probable that ABC will have to pay $1,400,000. In july 1, 2015, a competitor commenced a suit against ABC alleging violation of antitrust laws seeking damages of $2,200,00. ABC denies the allegations and the likelihood ABC paying any damaged is remote. In September 2015, the city of ZZ brought action against ABC for $1,800,000 for polluting the city. It is reasonable possible that the city will be successful bit the amount of damages. What amount, if any, should be accrued by a charge to income in 2015?

$1,400,000

$3,200,000

$5,400,000

$0

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Inherent risk and control risk differ from planned detection risk in that they

Arise from the misapplication of auditing procedures

May be assessed in either quantitative or nonquantitative terms

exist independently of the financial statement audit

Can be changed at the auditor's discretion

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