AUD Final Exam Questions & Answers 2023/2024

AUD Final Exam Questions & Answers 2023/2024 5 COSO Components of I/C - ANSWER-1. Control activities 2. Control environment 3. Risk assessment 4. Monitoring 5. Communication/Information 5 Classes of transactions in sales and cash cycle - ANSWER-1. Sales 2. Cash Receipts 3. Sales Returns and Allowances 4. Write-Offs 5. Bad Debt Expense Remittance Advice - ANSWER-is a document mailed to the customer and returned to the seller with the customer's payment, used to record the payment and deposit checks Confirmation Bias - ANSWER-Tendency to search for information and evidence that confirms one's beliefs or expectations Availability Bias - ANSWER-Causes decision makers to estimate or forecast the likelihood of an event based upon how readily they can recall an example or instance of that event. Familiarity Bias - ANSWER-The tendency to choose the same decision alternative in a new decision-making context that is identical or similar to a decision context faced in the past Anchoring & Adjustment Bias - ANSWER-Applies to situations in which an individual must arrive at a numerical estimate by starting from an initial value that is subsequently adjusted to arrive at the final estimated value. Uncertainty Bias - ANSWER-The tendency for decision makers to be averse to circumstances and decision alternatives involving uncertainty Framing Bias - ANSWER-The format used to present information relevant to a decision might influence the decision alternative subsequently chosen.