WorksheetsAUD589 QUIZ EXPENSE CYCLE
Total questions: 6
Worksheet time: 60secs
What does the expenses cycle begin with?
Payment of bills
Authorization by auditor
Incurring an obligation for services or goods
Financial statement preparation
Which of the following is a class of transaction in the expenses cycle?
Revenue recognition
Recognition of expenses
Loan issuance
Share capital issuance
An invoice dated 30 December recorded in January is an error in..
Occurrence
Completeness
Classification
Cut-off
Which of these is a possible misstatement?
Revenue recorded in correct period
Properly matched invoices and payment
Understatement of liabilities
Accurate account codes used
What is the purpose of a test of control?
To detect fraud
To identify revenue leaks
To test the effectiveness of internal controls
To prepare tax statement
An expense recorded under the wrong account affects which assertion?
Cut-off
Accuracy
Classification
Occurrence
