Question Details

ACC 403 FINAL EXAM PART 2
•  Question 1 
A document prepared to initiate shipment of the goods sold by an independent shipper is the:

			
•  Question 2 
	Generally, when is the earliest point in the sales and collection cycle in which revenue can be recognized?

			
•  Question 3 
Which of the following is an account that is not affected by the sales and collection cycle?

			
•  Question 4 
When assessing risk control, the auditor must do all of the following except:

			
•  Question 5 
The ________ is a contract between a carrier (e.g., a trucking company) and the seller of goods that dictates the details surrounding the shipment of goods.

			
•  Question 6 
Which of the following is the risk that audit tests will not uncover existing exceptions in a sample?

			
•  Question 7 
When the auditor decides to select less than 100 percent of the population for testing, the auditor is said to use:

			
•  Question 8 
In systematic sample selection, the population size is divided by the number of sample items desired in order to determine the:

			
•  Question 9 
	Which of the following is the risk that an auditor will reach an incorrect conclusion because a sample is not representative of the population?

			
•  Question 10 
Rodgers CPA believes that the rate of client billing errors is 4% and has established a tolerable deviation rate of 6%. In auditing client invoices Rodgers should use:

			
•  Question 11 
The most effective audit evidence gathered for accounts receivable is the:

			
•  Question 12 
Cutoff misstatements occur:

			
•  Question 13 
Tests of which balance-related audit objective are normally performed first in an audit of the sales and collection?

•  Question 14 
Which of the following audit procedure would normally be included in the audit plan when auditing the allowance for doubtful accounts?

			
•  Question 15 
The most important aspect of evaluating the client's method of obtaining a reliable cutoff is to:

			
•  Question 16 
The appropriate assumption to make regarding the overall percent of error in those population items containing an error is:
.
			
•  Question 17 
As the amount of misstatements expected in the population approaches tolerable misstatement, the planned sample size will:

			
•  Question 18 
When using monetary unit sampling, the recorded dollar population is a definition of all the items in the:

			
•  Question 19 
The auditor is concerned with the audited value rather than the error amount of each item in the sample when using:

			
•  Question 20 
If no exceptions were found in the substantive tests of transactions:

			
•  Question 21 
Master files, spreadsheets, and reports that accumulate material, labor, and overhead as the costs are incurred are:

			
•  Question 22 
Which one of the following analytical procedures would be most useful in alerting the auditor to the possibility of obsolete inventory?

			
•  Question 23 
Inventory is a complex area to audit for all but which of the following reasons?

			
•  Question 24 
Auditor tests of the physical controls over raw materials, work in process, and finished goods are generally limited to:

			
•  Question 25 
The audit of cost accounting begins with the internal transfer of assets from raw materials to work-in-process to:

			
•  Question 26 
	Auditors will generally send a standard inquiry letter to:

			
•  Question 27 
To make a final evaluation as to whether sufficient appropriate evidence has been accumulated, the auditor will do all of the following except:

			
•  Question 28 
After the balance sheet date, but prior to the issuance of the audit report, the client suffers an uninsured loss of their inventory as a result of a fire. The amount of the loss is material. The auditor should:

			
•  Question 29 
At the completion of the audit, management is asked to make a written statement that it is not aware of any undisclosed contingent liabilities. This statement would appear in the:

			
•  Question 30 
Which of the following subsequent events is most likely to result in an adjustment to a company's financial statements?

			
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