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WorksheetsChapter 1.5 Audit 2 quiz
Total questions: 7
Worksheet time: 4mins
What is current liabilities?
The portion of a bond liability that will not be paid within the upcoming year is classified as a noncurrent liability.
All the assets of a company that are expected to be sold or used as a result of standard business operations over the next year.
Company's short-term financial obligations that are due within one year or within a normal operating cycle
What are two(2) audit procedure on current liabilities?
Test of control, substantive test
Observation, enquiry test
Test of control, Recalculation
Purpose of preparing the auditing procedure on current liabilities?
To obtain the satisfactory assurance that the investment are in accordance to the Management's assertion and not materially misstated.
To obtain the satisfactory assurance that the liabilities are in accordance to the Management's assertion and not materially misstated
To ensure the liabilities balances are accurate and completely presented as at YE date
What are two(2) types of test of controls in auditing procedure for other current liabilities?
Segregation of duties, policies on the declaration of dividend
Policies on the declaration of dividend, substantive analytical procedures
Analytical procedures, segregation of duties
What is the definiton for substantive analytical procedures ?
Are procedures that utilize non financial to determine if the balance of the other current liabilities is reasonable
Are procedures that utilize both financial and non financial to determine if the balance of the other current liabilities is reasonable
Ensure declaration of dividen in accordance with relevant company laws
What is an example of current liabilities?
Account payables
Short-Term debt
Dividends
All of the above
What is another name of current liabilities?
Long-Term liabilities
Long-Term
Short-Term
Short-Term Liabilities
