ACC 492 FINAL EXAM 36 QUESTIONS AND
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ANSWERS 100% PASS.
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1) The ibonding iof iemployees iwill inormally ibe iexpected ito: i
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A. “weed iout” idishonest iemployees ialready ihired. i
B. serve ias ia ideterrent ito idishonesty. i
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C. guarantee ithat iall iemployee ifraud iwill ibe iprevented. i
D. eliminate ithe ineed ifor iseparation iof iduties iin ithe icash ireceipts iarea. i
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2) All isales, icash ireceipts, iand isales iadjustments iare iaccurately ivalued iusing iGAPP iand icorrectly ijournalized, isummarized, iand iposted.
iThese iactions iare itransaction iobjectives ifor: i
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A. occurance i
B. cutoff i
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C. accurancy i
D. completeness i
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3) Disclosure iobjectives iinclude iall iof ithe ifollowing iEXCEPT: i
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A. occurrence iand irights iand iobligations i
B. classification iand iunderstandability i
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C. completeness i
D. cutoff i
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4) The iextent iof ithe iauditor’s iinventory itest icount iwould iLEAST idepend ion iwhich iof ithe ifollowing? i
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A. The inature iand icomposition iof ithe iinventory. i
B. The iexistence iof iinventory iat imultiple ilocations. i
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C. The ieffectiveness iof icontrols ipertaining ito imaintenance iof iperpetual irecords. i
D. The icare iexercised iby iclient iemployees iin itaking ithe iinventory. i
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5) When istatistical isampling imethods iare iused iby ithe iclient iin idetermining iinventories, iprofessional istandards irequire ithat ithe iauditor
iascertain ithe ifollowing iEXCEPT ithat ithe: i
sampling iplan ihas istatistical ivalidity. i
B. appropriate itests iof itransactions ihave ibeen iapplied. i
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A. i
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C. results iin iterms iof ireliability iare ireasonable. i
D. sampling iplan ihas ibeen iproperly iapplied. i
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6) The iauditor’s istrategy iin iperforming itest icounts iduring ithe iinventory iobservation iis ito: i
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A. concentrate itests ion ihigh idollar iitems iand itake ia irepresentative isample iof iother iitems. i
B. concentrate itests iin iareas iwhere iemployees iseem ito ibe idisregarding ithe iinventory iinstructions. i
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C. randomly iselect iall itest iitems. i
D. test iall ihigh idollar iitems. i
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7) Observation iof iinventories iis ia irequired iaudit iprocedure iwhenever: i
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A. inventories iare imaterial. i
B. the iauditor iconsiders iit ito ibe inecessary. i
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i i i i i i
i
ANSWERS 100% PASS.
i i i i
1) The ibonding iof iemployees iwill inormally ibe iexpected ito: i
i
i
A. “weed iout” idishonest iemployees ialready ihired. i
B. serve ias ia ideterrent ito idishonesty. i
i
C. guarantee ithat iall iemployee ifraud iwill ibe iprevented. i
D. eliminate ithe ineed ifor iseparation iof iduties iin ithe icash ireceipts iarea. i
i
i
i
2) All isales, icash ireceipts, iand isales iadjustments iare iaccurately ivalued iusing iGAPP iand icorrectly ijournalized, isummarized, iand iposted.
iThese iactions iare itransaction iobjectives ifor: i
i
i
A. occurance i
B. cutoff i
i
C. accurancy i
D. completeness i
i
i
i
3) Disclosure iobjectives iinclude iall iof ithe ifollowing iEXCEPT: i
,i
i
i
i
i
A. occurrence iand irights iand iobligations i
B. classification iand iunderstandability i
i
C. completeness i
D. cutoff i
i
i
i
4) The iextent iof ithe iauditor’s iinventory itest icount iwould iLEAST idepend ion iwhich iof ithe ifollowing? i
i
i
A. The inature iand icomposition iof ithe iinventory. i
B. The iexistence iof iinventory iat imultiple ilocations. i
i
C. The ieffectiveness iof icontrols ipertaining ito imaintenance iof iperpetual irecords. i
D. The icare iexercised iby iclient iemployees iin itaking ithe iinventory. i
i
i
i
5) When istatistical isampling imethods iare iused iby ithe iclient iin idetermining iinventories, iprofessional istandards irequire ithat ithe iauditor
iascertain ithe ifollowing iEXCEPT ithat ithe: i
sampling iplan ihas istatistical ivalidity. i
B. appropriate itests iof itransactions ihave ibeen iapplied. i
, i
A. i
i
C. results iin iterms iof ireliability iare ireasonable. i
D. sampling iplan ihas ibeen iproperly iapplied. i
i
6) The iauditor’s istrategy iin iperforming itest icounts iduring ithe iinventory iobservation iis ito: i
i
i
A. concentrate itests ion ihigh idollar iitems iand itake ia irepresentative isample iof iother iitems. i
B. concentrate itests iin iareas iwhere iemployees iseem ito ibe idisregarding ithe iinventory iinstructions. i
i
C. randomly iselect iall itest iitems. i
D. test iall ihigh idollar iitems. i
i
i
i
7) Observation iof iinventories iis ia irequired iaudit iprocedure iwhenever: i
i
i
A. inventories iare imaterial. i
B. the iauditor iconsiders iit ito ibe inecessary. i
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