Pass Key

Question 1

Auditor tests reasonableness of dividend income from investments by computing the amounts that should receved

Answer 1

From dividend record book produced by investment advisory services

Question 2

Managements response to inquiry can be anyone except

Answer 2

Preparation of the summary of unadjusted differences

Question 3

When Auditor tests a computerized accounting system what is true of test data approach

Answer 3

Test data processed by client’s comp programme under the auditor’s control

Question 4

What is not Internal Control procedure designed to refuse billing errors

Answer 4

Reconsiling control totals for Sales invoices with AR sub ledger

Question 5

What procedures perform during Compilation engagement?

Answer 5

Consider whether FS are free from obvious MM in application of accounting principles

Question 6

Auditor searching for unrecorded AP would

Answer 6

Compare subsequent bank statements with the accounts payable listing

Question 7

Auditor analyzez R&M account to obtain evidence in support to the audit assertion that

Answer 7

Expenditures for P&E havent been charged to expense

Question 8

Audit program for examinations of retained earnings include

Answer 8

Authorization both cash and stock dividends

Question 9

Which of the following activities accountant is NOT responsible for in review engagement perform in accordance with SSARS?

Answer 9

Developing understanding of internal control

Question 10

Which is NOT the difference between FS audit and audit of IC for non issuer?

Answer 10

In FS audit communication of defficency should be made by report realise day, audit if IC within 60 days. Correct is vs vsa

Question 11

Overtime hours comparing to overtime he prior year. What is the name of the test?

Answer 11

Reasonableness test

Question 12

Embedded module not often used by auditor. Why?

Answer 12

A is required to be involved in system design of application

Question 13

Comfort letters send to

Answer 13

Underwriters and securities (negative assurance on fin info)

Question 14

Which limitation on response from attorney may result in qualified opinion?

Answer 14

Attorney’s refusal to respond when attorney has give subst attention to the matter

Question 15

To obtain understanding of entities IC on account balances Auditor should

Answer 15

Review entities description of Control over the inventory

Question 16

What is improper segregation of duties over purchase transactions

Answer 16

Purchasing department prepares prenumered requisition s and obtain all approvals (function of requisition department)

Question 17

Auditor testing IC of obtaining credit vapprovals before shipping goods. Which management assertion is tested?

Answer 17

Valuation and allocation (AR will be collected)

Question 18

Company management provides auditor with info regarding claims, litigation … Which is the auditor s primary mean of corraborating management info?

Answer 18

Inquiries of company outside consuel

Question 19

Group considered sub group for board of directors to fulfil it’s oversight responsibilities

Answer 19

Audit committee

Question 20

Which is true about CPA code of professional condact

Answer 20

It applies to compilations and reviews of the FS of nonissuers

Question 21

If performing sub test of cash disbursement auditor was told original invoice was misplaced what should he do?

Answer 21

Reevaluate risk of fraud and design alternate tests for related transactions

Question 22

What set of information does usually auditor confirm in one form

Answer 22

Cash in bank and collateral for loans

Question 22

What set of information does usually auditor confirm in one form

Answer 22

Cash in bank and collateral for loans

Question 23

When Auditing cash balance in the end of the year auditor uses bank confirmations and test bank recs auditor testing which assertion

Answer 23

Completeness, valuation and allowance

Question 24

Which is the reason that properly designed internal control may fail to perform fraud detection

Answer 24

Inadequate segregation of duties may allow one person both to perpetrate and conceal fraud activities

Question 24

Which is the reason that properly designed internal control may fail to perform fraud detection

Answer 24

Inadequate segregation of duties may allow one person both to perpetrate and conceal fraud activities

Question 25

Report on FS on cash receipts and disbursement basis should include all except

Answer 25

The cash receipt and disbursement basis is not a comprehensive basis of accounting

Question 26

Which auditor will Least like to consider with respect to fair values

Answer 26

The effect on fair value measurement and disclosures available subsequent to audit

Question 27

According to AICPA SSAR public accounting firm should establish quality control policies to provide assurance about matter relating on agreed upon procedure engagement

Answer 27

A practitioner is independent from the client and other parties

Question 28

Which of the following would make auditor to consider MM in FS

Answer 28

The results of analytical procedure disclosed unexpected differences

Question 29

Which characteris distinguish computer processing from manual processing

Answer 29

Computer processing virtually eliminate computation errord

Question 30

Presumptively mandatory requirements

Answer 30

Should

Question 31

Control deficiency is a material weakness when magnitude of misstatement

Answer 31

Likelihood is reasonable and Magnitude is Material