Chapter 8 Gleim

Question 1

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

Answer 1

recompute calculations on vendor invoices

Question 2

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

Answer 2

approved purchase order

Question 3

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

Answer 3

the check signer reviews and cancels the voucher packets

Question 4

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

Answer 4

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

Question 5

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

Answer 5

confirmation of AP

Question 6

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

Answer 6

inspect the property ledger then tour the client’s facilities

Question 7

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

Answer 7

analysis and recomputation of depreciation expense

Question 8

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

Answer 8

expenditures for PPE have not been charged to expense

Question 9

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

Answer 9

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

Question 10

the most relevant assertion for accounts payable is

Answer 10

completeness