W41-Flowcharting Flashcards
Q 143. An auditor’s flowchart of a client’s accounting system is a diagrammatic representation that depicts the auditor’s
a. Assessment of control risk
b. Identification of weaknesses in the system
c. Assessment of the control environment’s effectiveness
d. Understanding of the system
Q 143. (d) a flowchart is a diagrammatic representation that depicts the auditor’s understanding of the system. See AU 319 for various procedures auditors use to document their understanding of internal control
Q 144. The following flowchart depicts
a. Program code checking
b. Parallel simulation
c. Integrated test facility
d. Controlled reprocessing
Q 144. (b) parallel simulation involves processing actual client data through an auditor’s program
Q 145. In a credit sales and cash receipts system flowchart, symbol X could represent
a. Auditor’s test data
b. Remittance advises
c. Error reports
d. Credit authorization forms
Q 145. (b) the existence of a credit memo, in addition to a sales invoice, would indicate that this portion of the flowchart deals with cash receipts; therefore, the “X” would represent the remittance advises. Thus, the receipt transactions are credited to the accounts receivable master file, and an updated master file, a register of receipts, and exception reports are generated
Q 146. Which of the following symbolic representations indicate that a file has been consulted ?
Q 146. (d)
Q 147. A well-prepared flowchart should make it easier for the auditor to
a. Prepare audit procedure manuals
b. Prepare detailed job descriptions
c. Trace the origin and disposition of documents
d. Assess the degree of accuracy of financial data
Q 147. (c) a flowchart may be used to document the auditor’s understanding of the flow of transactions and documents
