ACC 492 Final Exam Solution

ACC 492 Final Exam Solution

1) The bonding of employees will normally be expected to:

2) All sales, cash receipts, and sales adjustments are accurately valued using GAPP and correctly journalized, summarized, and posted. These actions are transaction objectives for:

3) Disclosure objectives include all of the following EXCEPT:

4) The extent of the auditor’s inventory test count would LEAST depend on which of the following?

5) When statistical sampling methods are used by the client in determining inventories, professional standards require that the auditor ascertain the following EXCEPT that the:

6) The auditor’s strategy in performing test counts during the inventory observation is to:

7) Observation of inventories is a required audit procedure whenever:

8) With a manufacturer, wholesaler, or retailer, however, inherent risk for inventory may be assessed at or near the maximum level for all of the following reasons EXCEPT:

9) During the observation of the inventory, the auditor has NO responsibility to:

10) The specific audit objective that all purchase transactions and cash disbursements are valued using GAAP and correctly journalized, summarized, and posted relates to:

11) The specific audit objective that recorded purchases represent goods, services, and productive assets received during the period relates to:

12) The specific audit objective that all purchases and cash disbursements made during the period were recorded relates to:

13) The specific audit objective for the audit of investments, investment balances are properly identified and classified in the financial statements, relates to the:

14) The specific audit objective for the audit of investments, all recorded investments are owned by the reporting entity, relates to the:

15) The specific audit objective for the audit of investments, all investments are included in the balance sheet investment accounts, relates to the:

16) The specific account balance audit objective, plant assets and related expenses are properly identified and classified in the financial statements, relates to the:

17) The audit significance of the financial ratio, fixed asset turnover, is:

18) The substantive test of calculating fixed asset turnover is categorized under:

19) In confirming bank deposits, the auditor need NOT:

20) The standard bank confirmation, developed jointly by the AICPA, the American Bankers Association, and the Bank Administration Institute, requests information about all of the following EXCEPT:

21) The control of all funds during the count of cash on hand is meant primarily to prevent:

22) Whether the entity maintains effective controls to provide reasonable assurance that private customer information obtained as a result of e-commerce is protected from uses not related to the entity’s business defines:

23) Best practices in approaching risk management include the following steps EXCEPT:

24) In performing an attest engagement, a CPA performs all of the following EXCEPT:

25) Which of the following is NOT among the characteristics of the procedures performed in completing the audit?

26) The auditor relies on the client representation letter to:

27) In performing an attest engagement, a CPA performs all of the following EXCEPT:

28) Which of the following is NOT among the specific auditing procedures the auditor performs to obtain additional audit evidence?

29) In regard to identifying and evaluating subsequent events, AU 560.12 specifies that the auditor inquires of management having responsibility for financial and accounting matters as to all of the following EXCEPT:

30) When an investigation of the discovery of facts existing at the report date confirms the existence of the fact and the auditor believes the information is important to those relying or likely to rely on the financial statements, the auditor should immediately:

31) The two main sections of the AICPA’s Code of Professional Conduct are:

32) In general, except when explicitly stated otherwise, the Rules of Conduct in the AICPA’s Code of Professional Conduct are applicable to:

33) Which one of the following is NOT true of the Principles in the AICPA’s Code of Professional Conduct?

34) Gross negligence can best be defined as:

35) Anyone identified to the auditor by name prior to the audit who is to be the principal recipient of the auditor’s report is a

36) The Fund of Funds case illustrated that auditors could be found liable for failure to report wrong-doings discovered: