ACCT 444 ENTIRE COURSE

ACCT 444 ENTIRE COURSE | Devry University 

ACCT 444 Week 1 Homework 1-18, 2-19, 4-22, 26-25

ACCT 444 Week 1 Quiz

1. (TCO 3) The organization that is responsible for providing oversight for auditors of public companies is called the _____
2. (TCO 1) Which one of the following is not a fieldwork standard?
3. (TCO 1) Which of the following is not an example of the application of professional skepticism?
4. (TCO 1) An operational audit has as one of its objectives to
5. (TCO 1) Which of the following services do not need to be preapproved by the audit committee of an issuer?
6. (TCO 3) The concept of materiality would be least important to an auditor when considering the
7. (TCO 3) Independence in auditing means
8. (TCO 3) The financial interests of which of the following parties would not be included as a direct financial interest of the CPA?
9. (TCO 1) The phrase U.S. generally accepted accounting principles is an accounting term that
10. (TCO 1) Which of the following items impairs independence under U.S. ethics standards but does not necessarily impair independence under the IFAC Code of Ethics for Professional Accountants?
11. (TCO 3) The Sarbanes-Oxley Act applies to which of the following companies?
12. (TCO 1) Which one of the following is not a field work standard?
13. (TCO 1) Which of the following is not an example of the application of professional skepticism?
14. (TCO 1) Any service that requires a CPA firm to issue a report about the reliability of an assertion that is made by another party is a(n) _____
15. (TCO 1) Which of the following statements is incorrect regarding the SEC's partner rotation rules?
16. (TCO 3) The concept of materiality would be least important to an auditor when considering the
17. (TCO 3) Interpretations of Rule 101 prohibit covered members from owning any stock or other direct investment in audit clients. Covered members include all but which of the following?
18. (TCO 3) In some situations, the interpretations of the rules of conduct permit former partners to have relationships with a client of the firm without affecting the firm’s independence. Which of the following situations would not cause a loss of independence?
19. (TCO 1) Which of the following terms identifies a requirement for audit evidence?
20. (TCO 1) Which of the following statements best describes the ethical standard of the profession pertaining to advertising and solicitation?

ACCT 444 Week 2 Homework Problems

Chapter5 5-23, Chapter5 5-24, Chapter 6 6-23, Chapter 6 6-27,Chapter 11 11-30, ACCT 444 Week 2 Quiz

1. (TCO 4) In connection with the audit of financial statements, an independent auditor could be responsible for failure to detect a material fraud if
2. (TCO 4) "Absence of reasonable care that can be expected of a person is a set of circumstances" defines
3. (TCO 4) While performing services for their clients, professionals have a duty to provide a level of care that is
4. (TCO 4) The objective of the ordinary audit of financial statements is the expression of an opinion on
5. (TCO 4) The auditor's best defense when material misstatements are not uncovered is to have conducted the audit
6. (TCO 3) Which of the following is not one of the reasons that auditors provide only reasonable assurance on the financial statements?
7. (TCO 3) In the fraud triangle, fraudulent financial reporting and misappropriation of assets
8. (TCO 3) After fraud risks are identified and documented, the auditor should evaluate factors that _____ fraud risk, before developing an appropriate response to the risk of fraud.
9. (TCO 3) Which of the following statements describes circumstances that underlie employee incentives to misappropriate assets?
10. (TCO 4) If a CPA firm is being sued for common law fraud by a third party based on materially false financial statements, which of the following is the best defense the accountants could assert?
11. (TCO 4) "Absence of reasonable care that can be expected of a person is a set of circumstances" defines
12. (TCO 4) A third-party beneficiary is one that
13. (TCO 4) In the auditing environment, failure to meet auditing standards is often
14. (TCO 4) The responsibility for adopting sound accounting policies and maintaining adequate internal control rests with the
15. (TCO 3) The element that distinguishes an error from fraud is
16. (TCO 3) Which of the following is not one of the factors of the fraud triangle?
17. (TCO 3) After fraud risks are identified and documented, the auditor should evaluate factors that _____ fraud risk, before developing an appropriate response to the risk of fraud.
18. (TCO 3) Which of the following statements describes circumstances that underlie employee incentives to misappropriate assets?
19. (TCO 3) Which of the following characteristics is most likely to heighten an auditor's concern about the risk of material misstatements, due to fraud in an entity's 

ACCT 444 Week 3 Course Project

ACCT 444 Week 3 Homework Problems

7-27 (Objective 7-4) The following are examples of documentation typically obtained by auditors:

7-30 (Objective 7-4) Eight different types of evidence were discussed. The following questions concern the reliability of that evidence:

7-31 (Objective 7-4) As auditor of the Star Manufacturing Company, you have obtained

8-22 (Objective 8-7) Gale Gordon, CPA, has found ratio and trend analysis relatively useless as a tool in conducting audits. For several engagements, he computed the industry ratios included in publications by Standard and Poor’s and compared them with industry standards. For most engagements, the client’s business was significantly different from the industry data in the publication and the client automatically explained away any discrepancies by attributing them to the unique nature of its operations. In cases in which the client had more than one branch in different industries, Gordon found the ratio analysis no help at all. How can Gordon improve the quality of his analytical procedures?

8-33 (Objectives 8-3, 8-7, 8-8) Your comparison of the gross margin percent for Jones Drugs for the years 2008 through 2011 indicates a significant decline. This is shown by the following information:

9-33 (Objectives 9-6) Below are ten independent risk factors:

ACCT 444 Week 3 Quiz

1. (TCO 6) Which of the following statements regarding documentation is not correct?
2. (TCO 6) When analytical procedures reveal no unusual fluctuations, the implication is that
3. (TCO 6) The primary purpose of performing analytical procedures in the testing phase of an audit is to
4. (TCO 6) Three common types of confirmations used by auditors are (1) negative confirmations where only a response is requested if the debtor disagrees with the amount, (2) positive confirmations with a request for information where the debtor is requested to respond and to include their believed balance, and (3) positive confirmations with the information included where the debtor is requested to respond and to confirm the balance we give them. If they were placed in the order of their competence, from highest to lowest, the sequence would be
5. (TCO 7) Analytical procedures used in planning an audit should focus on identifying
6. (TCO 7) A measure of how willing the auditor is to accept that the financial statements may be materially misstated after the audit is completed and an unqualified opinion has been issued is the
7. (TCO 7) Which of the following is not correct regarding the communications between successor and predecessor auditors?
8. (TCO 8) The FASB definition of materiality emphasizes what class of financial statement users?
9. (TCO 8) Auditors are _____ to decide on the combined amount of misstatements in the financial statements that they would consider material early in the audit.
10. (TCO 8) Which of the following is not a correct statement regarding the allocation of the preliminary judgment about materiality to balance sheet accounts?

ACCT 444 Week 4 Course Project

ACCT 444 Week 4 Homework Problems

ACCT 444 Week 4 Quiz

1. (TCO 5) Which of the following parties provides an assessment of the effectiveness of internal control over financial reporting for public companies?
2. (TCO 5) Internal control reports issued by public companies must identify the framework used to evaluate the effectiveness of internal control. Which of the following is the most common framework in the U.S.?
3. (TCO 5) Management's tests of operating effectiveness might include which of the following types of procedures?
4. (TCO 5) Internal controls can never be regarded as completely effective. Even if company personnel could design an ideal system, its effectiveness depends on the
5. (TCO 5) Which of the following is not one of the levels of an absence of internal controls?
6. (TCO 10) Which of the following is not a benefit of using IT-based controls?
7. (TCO 10) Programmers should do all but which of the following?
8. (TCO 10) Which of the following is least likely to be used in obtaining an understanding of client general controls?
9. (TCO 10) A control that relates to all parts of the IT system is called a(n)
10. (TCO 10) Which of the following is not a category of an application control?

ACCT 444 Week 5 Course Project

ACCT 444 Week 5 Homework Problems

13-26 (Objectives 13-1, 13-2, 13-3, 13-6)The following are audit procedures from different transaction cycles:

1. Use audit software to foot and cross-foot the cash disbursements journal and trace the balance to the general ledger.
2. Select a sample of entries in the acquisitions journal and trace each one to a related vendor’s invoice to determine whether one exists.
3. Examine documentation for acquisition transactions before and after the balance sheet date to determine whether they are recorded in the proper period

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13-30 (Objectives 13-5, 13-7) Following are evidence decisions for the three audits described in Figure 13-3 on page 411

13-33 (Objective 13-4)

14-25 (Objectives 14-3, 14-4, 14-5)

14-26 (Objective 14-3) The following are selected transaction-related audit objectives and audit procedures for sales transactions

ACCT 444 Week 5 Quiz

1. (TCO 6) For efficiency, tests of controls are frequently done at the same time as
2. (TCO 6) Which of the following is not a direct result of performing analytical procedures?
3. (TCO 6) Which of the following audit tests is usually the most costly to perform?
4. (TCO 6) Which of the following represents an incorrect pairing of a type of audit test and evidence?
5. (TCO 6) The sequence of steps in gathering evidence as the basis of the auditor's opinion are
6. (TCO 9) It is important that sales be billed and recorded in the journal as soon as possible after
7. (TCO 9) At which point in an ordinary sales transaction would a lack of specific authorization be of least concern to the auditor?
8. (TCO 9) Proper separation of duties is useful to prevent various types of misstatements. Which of the following is not an essential separation of duties?
9. (TCO 9) Which one of the following would the auditor be concerned with when examining the client's billing function
10. (TCO 9) Smith Manufacturing Company's accounts receivable clerk has a friend who is also a Smith's customer. The accounts receivable clerk has issued fictitious credit memos to his friend for goods supposedly returned. The most effective procedure for preventing this activity is to

ACCT 444 Week 5 Team Memorandum

ACCT 444 Week 6 Homework Problems

Homework

Chapter 14, pages 468–469: Problems 14-21, 14-22, 14-23, and 14-24

Chapter 15, pages 509–511: Problems 15-22, 15-24 and 15-25

Chapter 16, pages 543–545: Problems 16-20, 16-21, 16-22, and 16-24

Chapter 17, page 594: Problem 17-28

ACCT 444 Week 6 Quiz

1. (TCO 9) If the auditor decides to assess control risk at the maximum level in a private company audit, tests of controls are
2. (TCO 9) When auditors wish to evaluate a sample statistically, the only acceptable selection method is
3. (TCO 9) One of the ways to eliminate nonsampling risk is through
4. (TCO 9) A customer mails and records a check to a client for payment of an unpaid account on December 30. The client receives and records the amount on January 2. The records of the two organizations will be different on December 31. Which of the following applies?
5. (TCO 9) If the auditor decides not to confirm accounts receivable, the auditor should
6. (TCO 9) For most audits, inherent risk for accounts receivable is moderate or low except for which balance-related audit objectives?
7. (TCO 9) An auditor should perform alternative procedures to substantiate the existence of accounts receivable when
8. (TCO 9) Which of the following is not a term relevant to sampling for tests of details?
9. (TCO 9) The relationship between required sample size and the acceptable risk of incorrect acceptance is
10. (TCO 9) The acceptable risk of incorrect acceptance is most related to

ACCT 444 Week 7 Course Project

Pinnacle Manufacturing Part VII

Assume that your understanding of internal controls over acquisitions and cash disbursements and the related tests of controls and substantive tests of transactions support an assessment of a low control risk. The listing of the 519 accounts making up the accounts payable balance of $12,969,686 at December 31, 2011 is included under the Pinnacle link on the textbook Web site.16-35 (Objectives 16-2, 16-3, 16-4)Parts III, V, and VI of this case study dealt with obtaining an understanding of internal control and assessing control risk for transactions affecting accounts payable of Pinnacle Manufacturing. In Part VII, you will design analytical procedures and design and perform tests of details of balances for accounts payable.

ACCT 444 Week 7 Homework Problems

3-27 (Objectives 3-1, 3-2, 3-4, 3-6, 3-7)Patel, CPA, has completed the audit of the financial statements of Bellamy Corporation as of and for the year ended December 31, 2011. Patel also audited and reported on the Bellamy financial statements for the prior year. Patel drafted the following report for 2011.

3-32 (Objectives 3-1, 3-2, 3-4) The following tentative auditor’s report was drafted by a staff accountant and submitted to a partner in the accounting firm of Better & Best, CPAs:

24-26 (Objective 24-1, 24-2) Elizabeth Johnson, CPA, has completed the audit of notes payable and other liabilities for Valley River Electrical Services and now plans to audit contingent liabilities and commitments.

24-28 (Objective 24-3) In analyzing legal expense for the Boastman Bottle Company, Mary Little, CPA, observes that the company has paid legal fees to three different law firms during the current year. In accordance with her CPA firm’s normal operating practice, Little requests standard attorney letters as of the balance sheet date from each of the three law firms.

25-22 (Objective 25-1) You are doing a review services and related tax work engagement for Murphy Construction Company. You have made extensive inquiries of management about their financial statements and have concluded that management has an excellent understanding of its business and is honest, but lacking in knowledge of technical accounting issues. In doing the review you determine the following:

ACCT 444 Week 7 Quiz

1. (TCO 2) When determining whether an exception is highly material the extent to which the exception affects different elements of the financial statements must be considered. This concept is called
2. (TCO 2) When a client has not applied GAAP consistently from the prior year to the current year, the auditor does not concur with the appropriateness of the change, and the change in GAAP has a material effect on the financial statements, the auditor should issue a(n)
3. (TCO 2) The only unqualified opinion which contains modified wording (excluding an explanatory paragraph) relates to
4. (TCO 2) A CPA will issue an adverse auditor's opinion if
5. (TCO 11) A principal purpose of a letter of representation from management is to
6. (TCO 11) Refusal by a client to prepare and sign the representation letter would require a(n)
7. (TCO 11) Inquiries of management regarding the possibility of unrecorded contingencies will not be useful in uncovering
8. (TCO 11) Which of the following procedures might be useful in discovering a contingent liability for a lawsuit that management is intentionally neglecting to disclose?
9. (TCO 2) In which type of report would you read the following statement: "We believe that our examination provides a reasonable basis for our opinion."?
10. (TCO 2) Compilation reports may be of all but which of the following types?

ACCT 444 Week 7 Quiz

1. (TCO 2) If a misstatement is immaterial to the financial statements of the entity for the current period, but is expected to have a material effect in future periods, it is appropriate to issue a(n)
2. (TCO 2) When the auditor believes a company's financial statements are misleading because they were not prepared in conformity with GAAP, the auditor must issue a(n)
3. (TCO 2) When qualifying an opinion because of an insufficiency of audit evidence, an auditor should refer to the situation in the:
4. (TCO 2) Jewel, CPA, audited Infinite Co.'s prior-year financial statements. These statements are presented with those of the current year for comparative purposes without Jewel's auditor's report, which expressed a qualified opinion. In drafting the current year's auditor's report, Crain, CPA, the successor auditor, should:

Not name Jewel as the predecessor auditor.

Indicate the type of report issued by Jewel.

Indicate the substantive reasons for Jewel's qualification.

5. (TCO 11) Which of the following is not a purpose of the client letter of representation?
6. (TCO 2) Which of the following conditions or events most likely would cause an auditor to have substantial doubt about an entity's ability to continue as a going concern?
7. (TCO 2) In May, Year 4, an auditor reissues the auditor's report on the Year 2 financial statements at a continuing client's request. The Year 2 financial statements are not restated and the auditor does not revise the wording of the report. The auditor should:
8. (TCO 11) Which of the following items would ordinarily not be included in the standard letter of inquiry to the client's attorney?
9. (TCO 2) In which type of report would you read the following statement: "We believe that our examination provides a reasonable basis for our opinion."?
10. (TCO 2) In connection with a proposal to obtain a new client, an accountant in public practice is asked to prepare a written report on the application of the requirements of an applicable financial reporting framework to a specific transaction. The accountant's report should include a statement that:

ACCT 444 Team Assignment Course Project

Group C Course Project
Week 7 – 16-35

1. Following are the relationships, ratios, and trends that provide useful information about the overall reasonableness of accounts payable: