BMGT 422 EXAM WITH ALL QUESTIONS AND VERIFIED ANSWERS LATEST UPDATED

BMGT 422 EXAM WITH ALL QUESTIONS
AND VERIFIED ANSWERS LATEST
UPDATED



Auditing - ANSWER: Process by which a competent, independent person
accumulates and evaluates evidence about measurable information related to a
specific economic entity to determine and report on the degree of
correspondence between information and established criteria

Auditing Functions - ANSWER 1. Obtain and evaluate evidence supporting the
F/S
2. Determine the fairness of F/S in conformity w/ est. criteria
3. Prepare audit report

Assurance Process

Accounting Functions - ANSWER 1. Analyze economic events and
transactions
2. Collecting information
3. Measure and record data
4. Classify and summarize data

Creation Process

unqualified (clean) audit report - ANSWER Standard Report: All basic F/S are
a fair representation and are in accordance with GAAP in all material respects
and GAAS was applied
There can be slight modifications to standard report (emphasis on a matter or
going concern)

adverse audit report - ANSWER Material and pervasive departures from
GAAP or not a fair representation of financial position

,Qualified (except for) audit report - ANSWER Fair representation except for:
Material but not pervasive departures from GAAP
Material but not pervasive material scope limitations

Disclaimer audit report - ANSWER Unable to form an opinion b/c:
The auditor is not independent
A material and pervasive scope limitation
A significant uncertainty

AICPA - ANSWER Who administers the CPA Exam?

Financial Accounting Process - ANSWER Transactions occur and source
documents created --> journal entries in the journal --> post entries to the
ledger(s) --> unadjusted TB --> adjusting entries (including auditor proposed) --
> adjusted TB --> f/s --> closing entries --> post entries to ledgers --> reversing
entries

Sales, cash receipts, general - ANSWER Journals included in sales and
collection cycle

Acquisitions, cash disbursements, general - ANSWER Journals included in
acquisition and payment cycle

Payroll and general - ANSWER Journals included in Payroll and personnel
cycle

Acquisition, sales, general - ANSWER Journals included in inventory and
warehousing cycle

Acquisition, cash disbursements, general - ANSWER Journals included in
capital acquisition and repayment cycle

Existence/Occurrence
Completeness
Valuation or Allocation
Rights and Obligations - ANSWER PCAOB Management Assertions

Occurrence

, Completeness
Accuracy
Classification
Cutoff - ANSWER Management Assertions - Transactions and Events

Existence
Completeness
Valuation and Allocation
Rights and Obligations - ANSWER Management Assertions - Balances

Occurrence
Completeness
Accuracy
Posting and Summarization
Classification
Cutoff - ANSWER Transaction Related Audit Objectives

Existence
Completeness
Realizable Value
Accuracy
Detail Tie-in
Classification
Cutoff
Rights and Obligations - ANSWER Balance Related Audit Objectives

Occurrence (Management Assertion) - ANSWER Transactions and events that
have been recorded have occurred and pertain to the entity.

Existence (Management Assertion) - ANSWER Assets, liabilities, and equity
interests exist.

Completeness (Transaction Management Assertion) - ANSWER All
transactions and events that should have been recorded have been recorded.

Completeness (Balance Management Assertion) - ANSWER All assets,
liabilities, and equity interests that should have been recorded have been
recorded.