deck 4

Question 1

the acceptable level of detection risk is inversely related to the

Answer 1

assurance provided by substantive tests

Question 2

when an auditor concludes that there are high risks of material misstatements they should

Answer 2

select more substantive tests

Question 3

a decrease in the number of misstatements in a class of transactions that an auditor could tolerate most likely would cause the auditor to

Answer 3

preform procedures closer to the bs date…

Question 4

In obtaining an understading of an entities internal control structure, the auditor is NOT OBLIGATED TO

Answer 4

Search for deficiencies in IC….However if defeciencies are identified, they get reported to the audit committee…

Question 5

employee manuals are a component of the????

Answer 5

Control Environment

Question 6

an auditor may decide to assess control risk at the maximum level for certain assertions because the auditor believes

Answer 6

control policies and procedures are likely to pertain to the assertions…

Question 7

the objective of tests of details of transactions performed as tests of controls is to

Answer 7

evaluate whether internal control structure procedures operated effectively

Question 8

when assessing an internal auditors objectivity????

Answer 8

consider policies that prohibit internal auditors from auditing areas where they were recently assigned…

Question 9

to assess competence of an internal auditor, obtain information about the

Answer 9

quality of the internal auditors working paper documentation

Question 10

when using the work of the internal auditor????

Answer 10

place a limited reliance on their work

Question 11

results of analytical procedures can be used to

Answer 11

assess the competence and objectivity of an internal auditor….

Question 12

To provide assurance that each voucher is submitted and paid only once, an auditor would most likely examine a sample of paid vouchers and determine whether each voucher is ?

Answer 12

Stamped as paid

Question 13

To provide for adequate segregation of duties, the person who signs checks should also be responsible for ?

Answer 13

mailing them!

Question 14

To determine whether checks are being issued for unauthorized expenditures, an auditor would most likely select items for testing from the population of all

Answer 14

Canceled checks

Question 15

a benefit of using electronic funds transfer for international cash transactions

Answer 15

Reduction of the frequency of data entry errors

Question 16

prevent an invoice for the purchase of merchandise from being paid twice

Answer 16

The check signer reviews and cancels the voucher packets

Question 17

no approved po=

Answer 17

goods not taken in receiving

Question 18

the vouchers payable department does not

Answer 18

control the mailing of the check and remittance advice…

Question 19

When the shipping department returns nonconforming goods to a vendor, the purchasing department should send to the accounting department the

Answer 19

Debit memo

advises accounting that the vendor invoice should not be paid in full due to returned goods

Question 20

Employees who approve PO’s can negotiate ?

Answer 20

terms with vendors

Question 21

Accounting for unused prenumbered purchase orders and receiving reports is not completed by the ?

Answer 21

vouchers payable department