Accounting

QUESTIONS AND ANSWERS

1. Which of the following is not a procedure performed primarily for the purpose of expressing an opinion on the financial statements, but may bring possible illegal acts to the auditor’s attention? A. Study and evaluation of internal accounting control B. Review of internal administrative control C. Tests of transactions D. Tests of balances 2. An auditor is testing sales transactions. One step is to trace a sample of debit entire from the accounts receivable subsidiary ledger back ...

1) What is the best way to handle manufacturing overhead costs in order to get the most timely job cost information? A. The company should add actual manufacturing overhead costs to jobs as soon as the overhead costs are incurred. B. The company should determine an allocation rate as soon as the actual costs are known, and then apply manufacturing overhead to jobs. C. The company should apply overhead using an estimated rate throughout the year. D. The company should account for only the ...