Chapter 8 Gleim Flashcards

1
Q

the same employee should match vendor invoices with receiving reports and also

A

recompute calculations on vendor invoices

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2
Q

the authority to accept incoming goods in receiving should be based on an

A

approved purchase order

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3
Q

which control would prevent an invoice for purchase of merchandise to be paid twice?

A

the check signer reviews and cancels the voucher packets

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4
Q

which procedure would an auditor perform in searching for unrecorded liabilities?

A

vouch a sample of cash disbursements recorded just after year end to receiving reports and vendor invoices

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5
Q

which procedure would an auditor be least likely to perform before the balance sheet date?

A

confirmation of AP

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6
Q

in performing a search for unrecorded liabilities of fixed assets, an auditor would

A

inspect the property ledger then tour the client’s facilities

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7
Q

which audit procedure is least likely to detect an unrecorded liability?

A

analysis and recomputation of depreciation expense

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8
Q

an auditor analyzes repairs and maintenance accounts primarily to obtain evidence in support of the relevant assertion that all

A

expenditures for PPE have not been charged to expense

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9
Q

which substantive procedure would an auditor use to verify existence and accuracy, valuation, allocation about recorded AP?

A

vouch selected entries in the AP subledger to purchase orders and receiving reports

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10
Q

the most relevant assertion for accounts payable is

A

completeness

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