A4 - Audit Procedures by Transaction Class Flashcards

1
Q

An analysis of which account would best aid in verifying that all fixed assets have been capitalized?

A

Repairs and maintenance

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2
Q

The auditor’s inventory observation test counts are traced to the client’s inventory listing to test for which financial statement assertion?

A

Completeness

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3
Q

Which assertions are tested under the balances substantive procedure?

A
CVER
Completeness
Valuation, allocation and accuracy
Existence and occurrence
Rights and obligations
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4
Q

Which assertions are tested under the transactions substantive procedure?

A
COVEU
Completeness
CutOff
Valuation, allocation and accuracy
Existence and occurrence
Understandability and classification
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5
Q

Which assertions are tested under the disclosures substantive procedure?

A
CVRU
Completeness
Valuation, allocation and accuracy
Rights and obligations and occurrence
Understandability and classification
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6
Q

T/F: The auditor should observe the physical inventory count of goods held in public warehouses if the inventory held therein is significant; otherwise, confirmation of such inventory is sufficient

A

True

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7
Q

T/F: Whoever signs the checks should not mail the checks

A

False; signing and mailing prevents defalcation of checks

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8
Q

What are the three concepts of proper segregation of duties?

A

ARC
Authorization
Recording
Custody

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