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51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | An account balance is $300,000 and there are 25 items in the account, six of which have balances that equal or exceed $15,000. The auditor plans to use a monetary-unit sampling plan with systematic sample selection. To ensure that all accounts with balances of at least $15,000 are selected, the sampling interval should... | D. 15,000 | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | In monetary-unit sampling, population size is A. the dollar balance in an account B. the number of items in an account C. unrelated to sample size D. included in the denominator of the formula to determine sample size | A. the dollar balance in an account | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | The risk of incorrect acceptance and the risk of over reliance relate to the A. preliminary estimates of materiality levels B. allowable risk of tolerable error C. efficiency of the audit D. effectiveness of the audit | D. effectiveness of the audit | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | The use of the ratio projection is most effective when A. the dollar amount of the misstatement is expected to relate to the dollar amount of items tested B. a small number of differences exist in the population C. estimating populations whose records consist of quantities but not book values D. large understatement di... | A. the dollar amount of the misstatement is expected to relate to the dollar amount of items tested | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Which of the following statements best describes an inherent limitation of the monetary-unit sampling method? A. it can only be used for substantive testing of asset accounts B. it requires the use of a computer system to perform the required calculations C. misstatement rates must be large and the misstatements must b... | D. misstatement rates must be small and the misstatements must be overstatements | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Which one of the following would the auditor consider to be an incompatible operation if the cashier receives remittances from the mailroom? A. the cashier prepares the daily deposit B. the cashier makes the daily deposit at a local bank C. the cashier posts the receipts to the accounts receivable subsidiary ledger car... | C. the cashier posts the receipts to the accounts receivable subsidiary ledger cards | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | In connection with the examination of financial statements by an independent auditor, the client suggests that members of the internal audit staff be utilized to minimize audit costs. Which of the following tasks could most appropriately be delegated to the internal audit staff? A. selection of accounts receivable for ... | B. preparation of schedules for negative accounts receivable responses | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | When comparing prices and terms on a sample of sales invoices with the authorized price list and terms of trade, the auditor is testing the ______ assertion. A. cutoff B. authorization C. occurrence D. completeness | B. authorization | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | If the objective of a test of details is to detect overstatements of sales, the auditor should trace transactions from the A. cash receipts journal to the sales journal B. sales journal to the cash receipts journal C. shipping documents to the accounting records D. accounting records to the shipping documents | D. accounting records to the shipping documents | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Auditors are more concerned with the occurrence assertion for revenues than the completeness assertion because: A. clients are more likely to overstate than understate revenues B. clients are more likely to understate than overstate revenues C. it is difficult to determine when services have been performed D. the allow... | A. clients are more likely to overstate than understate revenues | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | The confirmation of customers' accounts receivable rarely provides reliable evidence about the completeness assertion because A. many customers merely sign and return the confirmation without verifying its details B. recipients usually respond only if they disagree with the information on the request C. customers may n... | C. customers may not be inclined to report understatement errors in their accounts | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Which of the following procedures most likely would not be an internal control activity designed to reduce the risk of errors in the billing process? A. comparing control totals for shipping documents with corresponding totals for sales invoices B. using computer programmed controls on the pricing and mathematical accu... | ledger | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Which is not a key segregation of duties for the revenue process? Different parties should A. prepare shipping orders and prepare bills of lading B. perform the credit and billing functions C. perform the shipping and billing function D. receive cash and adjust accounts receivable | A. prepare shipping orders and prepare bills of lading | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Tracing copies of sales invoices to shipping documents will provide evidence that all A. shipments to customers were recorded as receivables B. billed sales were shipped C. accounts receivable ledger is complete D, shipments to customers were billed | B. billed sales were shipped | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Cooper, CPA is auditing the financial statements of a small rural municipality. The receivable balances represent residents' delinquent real estate taxes. Internal control at the municipality is weak. To determine the existence of the accounts receivable balances at the balance sheet date, Cooper would most likely A. s... | A. send positive confirmation requests | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Which of the following audit procedures is least likely to detect an unrecorded liability? A. analysis and recomputation of interest expense B. analysis and recomputation of depreciation expense C. mailing of standard bank confirmation forms D. reading of the minutes of meetings of the board of directors | B. analysis and recomputation of depreciation expense | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Which of the following is a substantive procedure that an auditor most likely would perform to verify the existence of recorded accounts payable? A. investigating the open purchase order file to ascertain that prenumbered purchase orders are used and accounted for B. receiving the client's mail, unopened, for a reasona... | C. vouching selected entries in the accounts payable subsidiary ledger to purchase orders and receiving reports | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | An auditor wishes to perform tests of controls on a client's cash disbursements procedures. If the control activities leave no audit trail of documentary evidence, the auditor most likely will test the procedures by A. inquiry and analytical procedures B. confirmation and observation C. observation and inquiry D. analy... | C. observation and inquiry | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | For effective internal control, the accounts payable department should compare the information on each vendor's invoice with the A. receiving report and the purchase B. receiving report and the voucher C. vendor's packing slips and purchase order D. vendor's packing slip and the voucher | A. receiving report and the purchase | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Which of the following procedures relating to the examination of accounts payable could the auditor delegate entirely to the client's employees? A. test footings in the accounts payable ledger B. reconcile unpaid invoices ti vendors' statements C. prepare a schedule of accounts payable D. mail confirmations for selecte... | C. prepare a schedule of accounts payable | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Assertions about classes of transactions and events for the period under audit include: A. existence, completeness, and accuracy B. existence, completeness, and classification C. occurrence, completeness, and cutoff D. occurrence, completeness, and valuation and allocation | and cutoff | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | An auditor performs a test to determine whether all merchandise for which the client was billed was received. The population for this test consists of all A. merchandise received B. vendors' invoices C. canceled checks D. receiving reports | B. vendors' invoices | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Which of the following is an internal control that would prevent a paid disbursement voucher from being presented for payment a second time? A. vouchers should be prepared by individuals who are responsible for signing disbursement checks B. disbursement vouchers should be approved by at least two responsible managemen... | D. the official signing the check should compare the check with the voucher and should "cancel" the voucher documents by marking them "paid" | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | The accounts payable department receives the purchase order form to accomplish all of the following except to A. compare invoice price to purchase order price B. ensure that the purchase had been properly authorized C. ensure that the goods had been received by the party requesting the goods D. compare quantity ordered... | C. ensure that the goods had been received by the party requesting the goods | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Substantive procedures to examine the completeness assertion for accounts payable include A. selecting a sample of vouchers and agreeing them to authorized purchase orders B. selecting a sample of vouchers and tracing them to the purchases journal C. comparing dates on vouchers to dates in the purchases journal D. reco... | B. selecting a sample of vouchers and tracing them to the purchases journal | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | The purpose of segregating the duties of hiring personnel and distributing payroll checks is to separate the A. administrative controls from the internal accounting controls B. human resources function from the controllership function C. operational responsibility from the record-keeping responsibility D. authorization... | D. authorization of transactions from the custody of related assets | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Which of the following circumstances most likely would cause an auditor to suspect an employee payroll fraud scheme? A. there are significant unexplained variances between standard and actual labor costs B. payroll checks are disbursed by the same employee each payday C. employee time cards are approved by individual d... | A. there are significant unexplained variances between standard and actual labor costs | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Which of the following procedures would normally be performed by the auditor when making tests of payroll transactions? A. interview employees selected in a statistical sample of payroll transactions B. vouch number of hours worked as shown on payroll to time cards and time reports signed by the foreman C. confirm amou... | B. vouch number of hours worked as shown on payroll to time cards and time reports signed by the foreman | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | A CPA reviews a client's payroll procedures. The CPA would consider internal control to be less than effective if a payroll department supervisor was assigned the responsibility for A. distributing payroll checks to employees B. reviewing and approving time reports for subordinate employees C. hiring subordinate employ... | A. distributing payroll checks to employees | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | When examining payroll transactions, an auditor is primarily concerned with the possibility of A. underpayments and properly authorized payments B. posting of gross payroll amounts to incorrect salary expense accounts C. misfootings of employee time records D. excess withholding of amounts required to be withheld | B. posting of gross payroll amounts to incorrect salary expense accounts | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | In testing the payroll of a large company, the auditor wants to establish that the individuals included in a sample actually were employees of the company during the period under review. What will be the best source to determine this? A. telephone contacts with the employees B. tracing from the payroll register to the ... | D. examination of HR Department records | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Tracing a sample of time cards before and after period end to the weekly payroll report and tracing the weekly payroll report to the general ledger to verify payroll transactions are recorded in the proper period would gather evidence primarily for which assertion: A. classification B. occurrence C. cutoff D. valuation | C. cutoff | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | In the weekly computer run to prepare payroll checks, a check was printed for an employee who had been terminated the previous week. Which of the following controls, if properly utilized, would have been most effective in preventing the error or ensuring its prompt detection? A. a control total for hours worked, prepar... | A. a control total for hours worked, prepared from time cards collected by the Timekeeping Department | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | A large retail enterprise has established a policy that requires that the paymaster deliver all unclaimed payroll checks to the Internal Auditing Department at the end of each payroll distribution day. This policy was most likely adopted in order to A. assure that employees who were absent on a payroll distribution day... | D. detect any fictitious employee who may have been placed on the payroll | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | An auditor would consider internal control over a client's payroll procedures to be ineffective if the payroll department supervisor is responsible for A. hiring subordinate payroll department employees B. having custody over unclaimed paychecks C. updating employee earnings records D. applying pay rates to time ticket... | B. having custody over unclaimed paychecks | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Which of the following is least likely to be a possible cause of book-to-physical differences in inventory quantities? A. inventory cutoff errors B. misapplication of LIFO C. unreported scrap or spoilage D. theft | B. misapplication of LIFO | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | An auditor will usually trace the details of the test counts made during the observation of the physical inventory count to a final inventory schedule. This audit procedure is undertaken to provide evidence that items physically present and observed by the auditor at the time of the physical inventory count are A. owne... | D. included in the final inventory schedule | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Which of the following is a plausible explanation for a large increase in the number of days outstanding in inventory? A. obsolete inventory B. new product line where sales exceed production C. manufacturing overhead was not allocated to the production process D. manufacturing salaries were recorded as administrative e... | A. obsolete inventory | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Which of the following departments typically approves purchase requisitions? A. raw materials stores B. cost accounting C. inventory management D. IT | C. inventory management | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | A client's physical count of inventories was higher than the inventory quantities per the perpetual records.This situation could be the result of the failure to record A. sales B. sales discounts C. purchases D. purchase returns | C. purchases | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Which of the following best described the occurrence assertion for inventory? A. purchase requisitions initiated by authorized personnel B. recorded inventory actually exists C. inventory properly accumulated from journals and ledgers D. all inventory is recorded | B. recorded inventory actually exists | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | An auditor generally tests physical security controls over inventory by A. test counts and cutoff procedures B. examination and reconciliation C. inspection and recomputation D. inquiry and observation | D. inquiry and observation | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | To gain assurance that all inventory items in a client's inventory listing schedule are valid, an auditor most likely would trace A. inventory tags noted during the auditor's observation to items listed in the inventory listing schedule B. inventory tags noted during the auditor's observation to items listen in receivi... | C. items listed in the inventory listing schedule to inventory tags and the count sheets | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | The accuracy of perpetual inventory records may be established, in part, by comparing perpetual inventory records with A. purchase requisitions B. receiving reports C. purchase orders D. vendor payments | B. receiving reports | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | The audit of year-end physical inventories should include steps to verify that the client's purchases and sales cutoffs were adequate. The audit steps should be designed to detect whether merchandise included in the physical count at year-end was not recorded as a A. sale in the subsequent period B. purchase in the cur... | C. sale in current period | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | In testing for unrecorded retirements of equipment, an auditor most likely would A. select items of equipment from the accounting records and then locate them during the plant tour B. compare depreciation journal entries with similar prior-year entries in search of fully depreciated equipment C. inspect items of equipm... | A. select items of equipment from the accounting records and then locate them during the plant tour | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Equipment acquisitions that are misclassified as maintenance expenses most likely would be detected by a control activity that provides for A. segregation of duties of employees in the accounts payable department B. independent verification of invoices for disbursements recorded as equipment acquisitions C. investigati... | B. independent verification of invoices for disbursements recorded as equipment acquisitions | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | In an interview with the plant manager regarding operations, the auditor is most likely to obtain evidence that raises concerns regarding A. the capitalization vs. expensing policy C. the need to write-off equipment that has become obsolete D. the adequacy of depreciation expense | C. the need to write-off equipment that has become obsolete | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Complex accounting issues for property, plant, and equipment include all of the following except A. lease accounting B. testing goodwill for impairment C. capitalized interest D. self-constructed assets | B. testing goodwill for impairment | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Testing a sample of repairs and maintenance expense items to ensure that they were properly classified as repairs as opposed to property, plant, and equipment tests which of the following assertions for the repairs and maintenance expense account? A. occurrence B. completeness C. cutoff D. authorization | A. occurrence | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Which of the following is the most important control activity over acquisitions of property, plant, and equipment? A. establishing a written company policy distinguishing between capital and revenue expenditures B. using a budget to forecast and control acquisitions and retirements C. analyzing monthly variances betwee... | B. using a budget to forecast and control acquisitions and retirements | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Testing depreciation calculations for a sample of property, plant, and equipment tests the assertion of A. existence B. completeness C. valuation and allocation D. rights and obligations | C. valuation and allocation | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | The auditor may conclude that depreciation charges are insufficient by noting A. insured values greatly in excess of book values B. large amounts of fully depreciated assets C. continuous trade-ins of relatively new assets D. excessive recurring losses on assets retired | D. excessive recurring losses on assets retired | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Due to a weakness observed in internal control over recording retirements of equipment, the auditor may decide to A. inspect certain items of equipment in the plant and trace those items to the accounting records B. review the subsidiary ledger to ascertain whether depreciation was taken on each item of equipment durin... | D. select certain items of equipment from the accounting records and locate them in the plant | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Which of the following accounts would most likely be reviewed by the auditor to gain reasonable assurance that additions to property, plant, and equipment are not understated? A. depreciation expense B. accounts payable C. cash D. repairs and maintenance expense | D. repairs and maintenance expense | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | A company issued bonds for cash during the year under audit. To ascertain that this transaction was properly recorded, the auditor's best course of action is to A. request a statement from the bond trustee as to the amount of the bonds issued and outstanding B. confirm the results of the issuance with the underwriter o... | C. trace the cash received from the issuance to the accounting records | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Reviewing interest expense to examine payments to debt holders not listed on the debt analysis schedule is a procedure that can be used to test the audit assertion of A. occurrence B. completeness C. cutoff D. accuracy | B. completeness | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | An auditor usually obtains evidence of stockholders' equity transactions by reviewing the entity's A. minutes of board of directors meetings B. transfer agent's records C. canceled stock certificates D. treasury stock certificate book | A. minutes of board of directors meetings | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | The auditor's program for the examination of long-term debt should include steps that require the A. verification of the existence of the bondholders B. examination of any bond agreement C. inspection of the accounts payable subsidiary ledger D. investigation of credits to the bond interest income account | B. examination of any bond agreement | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | The auditor can best verify a client's bond sinking fund transactions and year-end balance by A. recomputation of interest expense, interest payable, and amortization of bond discount or premium B. confirmation with individual holders of retired bonds C. confirmation with the bond trustee D. examination and count of th... | C. confirmation with the bond trustee | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | During an audit, Wicks learns that the audit client was granted a 3-month waiver of the repayment of principal on the installment loan with Blank Bank without an extension of the maturity date which is one year in the future. With respect to this loan, the audit program used by Wicks i least likely to include a verific... | B. balloon payment | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Where no independent stock transfer agents are employed and the corporation issues its own stocks and maintains stock records, canceled stock certificates should A. be defaced to prevent re-issuance and attached to their corresponding stubs B. not be defaced, but segregated from other stock certificates and retained in... | A. be defaced to prevent re-issuance and attached to their corresponding stubs | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Before expressing an opinion concerning the results of operations, the auditor would best proceed with the examination of the income statement by A. applying a rigid measurement standard designed to test for understatement of net income B. analyzing the beginning and ending balance sheet inventory amounts C. making net... | D. examining income statement accounts concurrently with the related balance sheet accounts | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | During the course of an audit, a CPA observes that the recorded interest expense seems to be excessive in relation to the balance in the long-term debt account. This observation could lead the auditor to suspect that A. long-term debt is understated B. discount on bonds payable is overstated C. long-term debt is overst... | A. long-term debt is understated | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | A control that ensures that long-term borrowing is properly initiated by appropriate individuals addresses the control assertion of A. occurrence B. authorization C. completeness D. valuation | B. authorization | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Jones was engaged to examine the financial statements of Virginia Corporation for the year ended June 30. Having completed an examination of the investment securities, which of the following is the best method of verifying the accuracy of recorded dividend income? A. tracing recorded dividend income to cash receipts re... | D. comparing recorded dividends with a standard financial reporting service's record of dividends | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | In confirming with an outside agent, such as a financial institution, that the agent is holding investment securities in the client's name, an auditor most likely gathers evidence in support of management's financial statement assertions regarding A. existence B. rights and obligations C. completeness D. all of the abo... | D. all of the above | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Examining brokers' advices for a sample of securities purchased during the year is a test for the assertion of A. completeness B. disclosure C. valuation and allocation D. rights and obligations | D. rights and obligations | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | The auditor should insist that a representative of the client be present during the physical examination of securities in order to A. lend authority to the auditor's directives B. detect forged securities C. coordinate the return of all securities to proper locations D. acknowledge the receipt of securities returned | D. acknowledge the receipt of securities returned | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | An auditor should trace interbank transfers for the last part of the audit period and first part of the subsequent period to detect whether A. the cash receipts journal was held open for a few days after the year-end B. the last checks recorded before the year end were actually mailed by the year-end C. cash balances w... | C. cash balances were overstated because of kiting | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Auditor's will need to perform more substantive tests than normal to obtain sufficient appropriate evidence that a financial instrument is fairly stated if which of the following conditions exist: A. management is objective and transparent in their assumptions B. management's key assumptions are subject to volatility C... | B. management's key assumptions are subject to volatility | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Examining a sample of cancelled checks for an authorized signature tests which of the following assertions for cash? A. occurrence B. completeness C. cutoff D, accuracy | A. occurrence | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Which of the following is not one of the auditor's primary objectives in an examination of marketable securities? A. to determine whether securities are authentic B. to determine whether securities are the property of the client C. to determine whether securities actually exist D. to determine whether securities are pr... | B. to determine whether securities are the property of the client | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | A company holds bearer bonds as a short-term investment. Responsibility for custody of these bonds and submission of coupons for periodic interest collections probably should be delegated to the A. chief accountant B. internal auditor C. cashier D. treasurer | D. treasurer | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Under which of the following circumstances would an auditor be most likely to intensify an examination of a $1,000 petty cash fun maintained on an imprest basis? A. reimbursement vouchers are not prenumbered B. reimbursement of the fund from the general cash account occurs twice or more each week C. the custodian occas... | A. reimbursement vouchers are not prenumbered | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Which of the following auditing procedures is ordinarily performed last? A. Confirming accounts payable B. Testing the purchasing function C. Reading the minutes of directors' meetings D. Obtaining a management representation letter | D. Obtaining a management representation letter | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | The refusal of a client's attorney to provide a representation on the legality of a particular act committed by the client is generally A. Sufficient reason to issue a "subject to" qualified opinion B. Considered to be a scope limitation C. Insufficient reason to modify the auditor's report because of the attorney's ob... | B. Considered to be a scope limitation | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | An auditor's decision concerning whether or not to "dual date" the audit report is based upon the auditor's willingness to A. Extend auditing procedures B. Accept responsibility for all events between year-end and the audit report date C. Permit inclusion of a footnote captioned: event (unaudited) subsequent to the dat... | A. Extend auditing procedures | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Which of the following expressions is least likely to be included in a client's representation letter? A. No events have occurred subsequent to the balance sheet date that require adjustment to or disclosure in, the financial statements B. The company has complied with all aspects of contractual agreements that would h... | C. Management acknowledges responsibility for illegal actions committed by its employees | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | An example of a Type 1 subsequent event is A. A tornado that destroys a client's factory after the balance sheet date B. An event after the balance sheet date that confirms the auditor's belief (documented prior to the end of the client's fiscal year) that a large portion of the client's inventory is obsolete C. Notifi... | B. An event after the balance sheet date that confirms the auditor's belief (documented prior to the end of the client's fiscal year) that a large portion of the client's inventory is obsolete | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | An auditor issued an audit report that was dual dated for a subsequent event that occurred after the completion of field work but before issuance of the auditor's report. The auditor's responsibility for events occurring subsequent to the completion of field work was A. Limited to the specific event referenced B. Limit... | A. Limited to the specific event referenced | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Which of the following statements is correct concerning an auditor's required communication with those charged with governance? A. This communication is required to occur before the auditor's report on the financial statements is issued B. This communication should include management changes in the application of signi... | B. This communication should include management changes in the application of significant accounting policies | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Which of the following statements ordinarily is included among the written client representations obtained by the auditor? A. Compensating balances and other arrangements involving restrictions on cash balances have been disclosed B. Management acknowledges responsibility for illegal actions committed by employees C. S... | A. Compensating balances and other arrangements involving restrictions on cash balances have been disclosed | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | After an audit report containing an unqualified opinion on a nonpublic client's financial statements is issued, the auditor learns that the client has decided to sell the shares of a subsidiary that accounts for 30 percent of its revenue and 25 percent of its net income. The auditor should A. Determine whether the info... | D. Take no action because the auditor has no obligation to make any further inquiries | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Which of the following procedures should an auditor generally perform regarding subsequent events? A. Compare the latest available interim financial statements issued after year-end with the financial statements being audited B. Send second requests to the client's customers who failed to respond to initial accounts re... | A. Compare the latest available interim financial statements issued after year-end with the financial statements being audited | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | When the auditor is unable to determine the amounts associated with the illegal acts of client personnel because of an inability to obtain adequate evidence, the auditor should issue a(n) A. "Subject to" qualified opinion B. Disclaimer of opinion C. Adverse opinion D. Unqualified opinion with a separate explanatory par... | B. Disclaimer of opinion | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | When comparative financial statements are presented, the fourth standard of reporting, which refers to financial statements "taken as a whole," should be considered to apply to the financial statements of the A. Periods presented plus the one preceding period B. Current period only C. Current period and those of the ot... | C. Current period and those of the other periods presented | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Which of the following auditing procedures most likely would assist an auditor in identifying conditions and events that may indicate substantial doubt about an entity's ability to continue as a going concern? A. Inspecting title documents to verify whether any assets are pledged as collateral B. Confirming with third ... | B. Confirming with third parties the details of arrangements to maintain financial support | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Which of the following circumstances normally does not affect the consistency phrase in the auditor's standard report? A. A change in accounting estimate B. A change in accounting principle C. A change in the companies included in combined financial statements D. A correction of an error in principle | A. A change in accounting estimate | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Which of the following would be considered a change that affects consistency A. Change in accounting estimate B. Change in accounting principle C. Change in classification and reclassification D. All of the above | B. Change in accounting principle | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | An auditor's report on financial statements prepared in accordance with a comprehensive basis of accounting other than generally accepted accounting principles should include all of the following except A. An opinion as to whether the basis of accounting used is appropriate under the circumstances B. An opinion as to w... | A. An opinion as to whether the basis of accounting used is appropriate under the circumstances | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Abbot, CPA, as principal auditor for consolidated financial statements is using a qualified report of another auditor. Abbot does not consider the qualification material relative to the consolidated financial statements and Abbot is willing to accept responsibility for the work of the other auditor. What recognition, i... | A. He need make no reference | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | Which of the following would be considered a change that does not affect consistency? A. Change expected to have a material future effect B. Change in accounting principle C. Correction of an error in principle D. None of the above are considered changes that do not affect consistency | A. Change expected to have a material future effect | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | A scope limitation sufficient to preclude an unqualified opinion always will result when management A. Prevents the auditor from reviewing the working papers of the predecessor auditor B. Engages the auditor after the year-end physical inventory is completed C. Requests that certain material accounts receivable not be ... | D. Refuses to provide a representation letter acknowledging its responsibility for the fair presentation of the financial statements in conformity with GAAP | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
51a18c0f_it_Final_Flashcards___Cram_com__C__Stockholders_of_the_company | The adverse effects of events causing an auditor to believe there is substantial doubt about an entity's ability to continue as a going concern would most likely be mitigated by evidence relating to the A. Ability to expand operations into new product lines in the future B. Feasibility of plans to purchase leased equip... | C. Marketability of assets that management plans to sell | [] | Audit Final Flashcards - Cram.com | C. Stockholders of the company | http://www.cram.com/flashcards/audit-final-2008861 | 25/1438042989790.89_20150728002309-00240-ip-10-236-191-2_384361546_0.json |
386a117b_ONTRACTS_Flashcards___Cram_com__es_to_leases_with_a_fixed_term | Where there is a failure of a lessor or lesee to make repairs, pursuant to an agreement to do so, is there a breach? | Yes but whether it may be dissolved is within the court's discretion | [] | 000 CODE III LEASE/SECURITIES/CONTRACTS Flashcards - Cram.com | Indefinite until a party properly terminates by notice. For agricultural it continues on an annual basis, for residential immovable month to month, and for non-residential movable, day to day. tacit reconduction DOES NOT apply - only applies to leases with a fixed term | http://www.cram.com/flashcards/000-code-iii-leasesecuritiescontracts-2245556 | 25/1438042989790.89_20150728002309-00078-ip-10-236-191-2_397940441_0.json |
386a117b_ONTRACTS_Flashcards___Cram_com__es_to_leases_with_a_fixed_term | Explain differences between PMSI in movables and vendor's privilege in movables | The purpose of both a vendor’s privilege in movable property and a purchase-money security interest (PMSI) is that, if the debtor-buyer defaults on the promise to pay for a credit purchase, the creditor can have the purchased property (the collateral) seized and sold and apply the proceeds to the unpaid obligation. A v... | [] | 000 CODE III LEASE/SECURITIES/CONTRACTS Flashcards - Cram.com | Indefinite until a party properly terminates by notice. For agricultural it continues on an annual basis, for residential immovable month to month, and for non-residential movable, day to day. tacit reconduction DOES NOT apply - only applies to leases with a fixed term | http://www.cram.com/flashcards/000-code-iii-leasesecuritiescontracts-2245556 | 25/1438042989790.89_20150728002309-00078-ip-10-236-191-2_397940441_0.json |
386a117b_ONTRACTS_Flashcards___Cram_com__es_to_leases_with_a_fixed_term | explain attachment | “Attachment” is the process by which a security interest is created; that is, made enforceable against the debtor, by “attaching” to specific property, called the “collateral.” The prerequisites for attachment are that (1) value has been given, (2) the debtor has rights in the collateral, and (3) the debtor has authent... | [] | 000 CODE III LEASE/SECURITIES/CONTRACTS Flashcards - Cram.com | Indefinite until a party properly terminates by notice. For agricultural it continues on an annual basis, for residential immovable month to month, and for non-residential movable, day to day. tacit reconduction DOES NOT apply - only applies to leases with a fixed term | http://www.cram.com/flashcards/000-code-iii-leasesecuritiescontracts-2245556 | 25/1438042989790.89_20150728002309-00078-ip-10-236-191-2_397940441_0.json |
386a117b_ONTRACTS_Flashcards___Cram_com__es_to_leases_with_a_fixed_term | explain perfection | “Perfection” is the process of making an attached security interest enforceable against third parties. The most common method of perfection is filing a UCC-1 financing statement in the UCC records of the jurisdiction where the debtor is. Because Abe is a corporation, it is a “registered organization,” so it is located ... | [] | 000 CODE III LEASE/SECURITIES/CONTRACTS Flashcards - Cram.com | Indefinite until a party properly terminates by notice. For agricultural it continues on an annual basis, for residential immovable month to month, and for non-residential movable, day to day. tacit reconduction DOES NOT apply - only applies to leases with a fixed term | http://www.cram.com/flashcards/000-code-iii-leasesecuritiescontracts-2245556 | 25/1438042989790.89_20150728002309-00078-ip-10-236-191-2_397940441_0.json |
386a117b_ONTRACTS_Flashcards___Cram_com__es_to_leases_with_a_fixed_term | how to perfect collateral with certificate of title? | The only way to perfect an interest in collateral covered by a certificate of title is to file a UCC-1 in the Department of Public Safety and Corrections, Office of Motor Vehicles, describing the truck with greater specificity (e.g., ID number, make, model). | [] | 000 CODE III LEASE/SECURITIES/CONTRACTS Flashcards - Cram.com | Indefinite until a party properly terminates by notice. For agricultural it continues on an annual basis, for residential immovable month to month, and for non-residential movable, day to day. tacit reconduction DOES NOT apply - only applies to leases with a fixed term | http://www.cram.com/flashcards/000-code-iii-leasesecuritiescontracts-2245556 | 25/1438042989790.89_20150728002309-00078-ip-10-236-191-2_397940441_0.json |
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