Question Details

ACC 403 WEEK 10 QUIZ 8
•  Question 1 
	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?

			
•  Question 2 
The most effective audit evidence gathered for accounts receivable is the:

			
•  Question 3 
	Most tests of accounts receivable are based on what schedule, file, or listing?

			
•  Question 4 
The most important aspect of evaluating the client's method of obtaining a reliable cutoff is to:

			
•  Question 5 
The audit procedure that provides the auditor with the most appropriate evidence when performing test of details of balances for accounts receivable is:

			
•  Question 6 
For most audits, a proper cash receipts cutoff is less important than the sales cutoff because the improper cutoff of cash:

			
•  Question 7 
	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:

			
•  Question 8 
Which of the following most likely would be detected by a review of a client's sales cutoff?

			
•  Question 9 
Which of the following is the principle "weakness" of using negative confirmations for your tests of details of balances for accounts receivable?

			
•  Question 10 
The understatement of sales and accounts receivable is best uncovered by:

			
•  Question 11 
The two primary classes of transactions in the sales and collection cycle are:

			
•  Question 12 
The net realizable value of accounts receivable is equal to:

			
•  Question 13 
The most important test of details of balances to determine the existence of recorded accounts receivable is:		

			
•  Question 14 
A type of positive confirmation known as a blank confirmation:

			
•  Question 15 
Tests of which balance-related audit objective are normally performed first in an audit of the sales and collection?

			
•  Question 16 
The allowance for sampling risk when no misstatements are found in the sample is:

			
•  Question 17 
The client's trial balance has a balance of $410,000 for merchandise inventory. As the auditor you are willing to accept a balance that is within $20,000 of either side of the recorded balance. You compute a 95% confidence interval of $395,000 to $425,000. You could therefore:

			
•  Question 18 
	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?

			
•  Question 19 
When errors are found in a sample, auditors in practice generally make the assumption:

			
•  Question 20 
In monetary unit sampling, the relationship between tolerable misstatement size and required sample size is:

			
•  Question 21 
If acceptable audit risk is increased, acceptable risk of incorrect acceptance should be:

			
•  Question 22 
When selecting a sample size for substantive tests of balances which factor, other factors being equal, would result in a larger sample?

			
•  Question 23 
One of the steps involved in planning the sample for the tests of details of balances is to:

			
•  Question 24 
The method used to measure the estimated total error amount in a population when there is both a recorded value and an audited value for each item in the sample is:

			
•  Question 25 
As the amount of misstatements expected in the population approaches tolerable misstatement, the planned sample size will:

			
•  Question 26 
When the sample selection is done using probability proportional to size sample selection (PPS):


			
•  Question 27 
Which of the following is not a type of statistical method that provides results in dollar terms?

			
•  Question 28 
In estimating the population misstatement, the first step in projecting from the sample to the population is to:

			
•  Question 29 
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:

			
•  Question 30 
The auditor is concerned with the audited value rather than the error amount of each item in the sample when using:

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