Wk 5 - Final Exam [due Mon]

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. 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.