ACC/403 ACC403 ACC 403 WEEK 10 QUIZ

Audit procedures designed to uncover credit sales made after the client's fiscal year end that relate to the current year being audited provide evidence for which of the following audit objective?

The most important aspect of evaluating the client's method of obtaining a reliable cutoff is to:

A positive confirmation is more reliable evidence than a negative confirmation because:

Which of the following is likely to be determined first when performing tests of details for accounts receivable?

The two primary classes of transactions in the sales and collection cycle are:

A type of positive confirmation known as a blank confirmation:

Cutoff misstatements occur:

If the client's internal control for recording sales returns and allowances is evaluated as ineffective:

Most tests of accounts receivable are based on what schedule, file, or listing?

For sales, the occurrence transaction-related audit objective affects which of the following balance-related audit objective?

For cash receipts, the occurrence transaction-related audit objective affects which of the following balance-related audit objective?

The understatement of sales and accounts receivable is best uncovered by:

Which of the following audit procedure would normally be included in the audit plan when auditing the allowance for doubtful accounts?

Confirmation of accounts receivable selected from the trial balance is the most common test of details of balances for the ________ of accounts receivable.

An auditor selects a sample from the file of shipping documents to determine whether invoices were prepared. This test is to satisfy the audit objective of:

The final step in the evaluation of the audit results is the decision to:

When selecting a sample size for substantive tests of balances which factor, other factors being equal, would result in a larger sample?

The allowance for sampling risk when no misstatements are found in the sample is:

As the amount of misstatements expected in the population approaches tolerable misstatement, the planned sample size will:

You are auditing Nelson and Company and determined that the sample results support a conclusion that the account is materially misstated, when in fact it was not misstated. This illustrates the risk of:

If an auditor desires a greater level of assurance in auditing a balance, the acceptable risk of incorrect acceptance:

If an auditor concludes that internal controls are likely to be effective, the preliminary assessment of control risk can be reduced, leading to which of the following impacts on the acceptable risk of incorrect acceptance?

The auditor is concerned with the audited value rather than the error amount of each item in the sample when using:

When using monetary unit sampling, the recorded dollar population is a definition of all the items in the:

When the sample selection is done using probability proportional to size sample selection (PPS):

While performing a substantive test of details during an audit, the auditor determined that the sample results supported the conclusion that the recorded account balance was not materially misstated. It was, in fact, materially misstated. This situation illustrates the risk of:

One of the steps involved in planning the sample for the tests of details of balances is to:

The word below that best explains the relationship between required sample size and the acceptable risk of incorrect acceptance is:

When defining the population and the sampling unit for tests of details of balances:

Monetary unit sampling is not particularly effective at detecting: