ACC 411 ACC/411 ACC411 Chapter 10 & 11 Homework (SNHU)
Internal control over cash receipts is weakened when an employee who receives customer mail receipts also:
Contact with banks for the purpose of opening company bank accounts should normally be the responsibility of the corporate:
Under which of the following circumstances would an auditor be most likely to intensify an examination of a $500 imprest petty cash fund?
In order to avoid the misappropriation of company-owned financial investments, which of the following is the best course of action that can be taken by the management of a company with a large portfolio of financial investments?
Listed below are types of errors or fraud that might occur in financial statements and audit procedures. Select the audit procedure with the error or fraud that the procedure is likely to detect.
Which of the following controls would most likely reduce the risk of diversion of customer receipts by a client’s employees?
To provide assurance that each voucher is submitted and paid only once, the auditors most likely would examine a sample of paid vouchers and determine whether each voucher is:
Intestingcontrolsovercashdisbursements,theauditorsmostlikelywoulddeterminethattheperson who signs checks also:
To gather evidence regarding the balance per bank in a bank reconciliation, the auditors would examine any of the following except:
You have been assigned to the year-end audit of a financial institution and are planning the timing of audit procedures relating to cash. You decide that it would be preferable to:
Which of the following procedures would the auditors most likely perform to test controls relating to management’s assertion about the completeness of cash receipts for cash sales at a retail outlet?
Reconciliation of the bank account should not be performed by an individual who also:
The auditors suspect that a client’s cashier is misappropriating cash receipts for personal use by lapping customer checks received in the mail. In attempting to uncover this embezzlement scheme, the auditors most likely would compare the:
In order to guard against the misappropriation of company-owned marketable securities, which of the following is the best course of action that can be taken by a company with a large portfolio of marketable securities?
Hall Company had large amounts of funds to invest on a temporary basis. The board of directors decided to purchase securities and derivatives and assigned the future purchase and sale decisions to a responsiblefinancial executive. The best person or persons to make periodic reviews of the investment activity would be:
The auditors who physically examine securities should insist that a client representative be present in order to:
The best way to verify the amounts of dividend revenue received during the year is:
For effective internal control, the billing function should be performed by the:
The auditor examines copies of sales invoices only for the initials of the person responsible for checking the extensions. This is an example of a:
An auditor reconciles the total of the accounts receivable subsidiary ledger to the general ledger control account as of October 31, 20X0. By this procedure, the auditor would be most likely to learn of which of the following?
The confirmation of the client's trade accounts receivable is a means of obtaining evidential matter and is specifically considered to be a generally accepted auditing:
Which of the following statements regarding the audit of negotiable notes receivable is correct?
Which of the following is least likely to be considered an inherent risk relating to receivables and revenues?
Which of the following would provide the most assurance concerning the valuation of accounts receivable?
Which of the following is most likely to be an example of fraudulent financial reporting relating to sales?
Which of the following is an example of misappropriation of assets relating to sales?
There is a presumption that auditors will confirm accounts receivable unless the auditors’ assessment of the risk of material misstatement is low.
Which of the following is not among the criteria that ordinarily exist for revenue to be recognized?
To determine that all sales have been recorded, the auditors would select a sample of transactions from the:
Which of the following would most likely be detected by an auditor’s review of the client’s sales cutoff?
To test the existence assertion for recorded receivables, the auditors would select a sample from the:
Which assertion relating to sales is most directly addressed when the auditors compare a sample of shipping documents to related sales invoices?
Cooper, CPA, is auditing the financial statements of a small rural municipality. The receivable balances represent residents’ delinquent real estate taxes. Internal control at the municipality is weak. To determine the existence of the accounts receivable balances at the balance sheet date, Cooper would most likely:
Identify the control that is most likely to prevent the concealment of a cash shortage resulting from the improper write-off of a trade account receivable: