Wk 5 - Final Exam Questions And Answers 2023

Wk 5 - Final Exam Questions And Answwers 2023 Test Content 1. Question 1 / 3 You are auditing Manufacturing Company and testing the audit related objective of completeness for the equipment accounts. Which of the following audit procedures is most likely to achieve your objective? Correct (B) Examine vendor invoices ... Hide other options Examine vendor invoices and receiving reports. Examine vendor invoices of closely related accounts such as repairs and maintenance. Trace individual acquisitions to the fixed asset master file. Physically examine assets. 2. Question 2 1. 2. 3. 4. / 3 In most manufacturing companies, the inventory and warehousing cycle begins with the: Correct (D) acquisition of raw ... Hide other options completion of production of a customer's order. initiation of production of a customer's order. receipt of a customer's order. acquisition of raw materials for production of an order. 3. Question 3 / 3 Which of the following does not have to be considered in determining the initial sample size of a test of details? Correct (A) Acceptable risk of ... 1. 2. 3. 4. 1. Hide other options Acceptable risk of incorrect rejection Estimate of misstatements in the population Tolerable misstatement Acceptable audit risk 4. Question 4 / 3 Because cash is the most desirable asset for people to steal, it has a higher: Correct (A) inherent risk Hide other options inherent risk. 3. 4. 1. 2. 3. 4. control risk. liquidity risk. detection risk. 5. Question 5 / 3 Which of the following is a business function related to sales returns and allowances? Correct (D) Processing and recording ... Hide other options Granting credit Writing off uncollectible accounts Processing customer orders 2. 1. 2. 3. 4. Processing and recording credit memos 6. Question 6 / 3 The computer file used for recording payroll transactions for each employee and maintaining total wages paid for the year to date is the: Correct (A) payroll master file Hide other options payroll master file. payroll tax returns. payroll bank account reconciliation. payroll transaction file. 7. Question 7 / 3 1. 2. 3. 4. Which of the following is a contract between a carrier (e.g., a trucking company) and the seller of goods that dictates the details surrounding the shipment of goods? Correct (B) bill of lading Hide other options sales invoice bill of lading picking ticket remittance advice 8. Question 8 / 3 Which of the following accumulate costs by individual jobs as material is issued into production and labor costs are incurred? Correct (C) Job order cost systems Hide other options 2. 3. 4. 1. 2. Process cost systems Manufacturing systems Job order cost systems Just-in-time production systems 9. Question 9 / 3 The audit procedure that requires an auditor to "foot the acquisition schedule" relates to which balance-related audit objective?... Continues...