Exam 8: Acquisition and Expenditure Cycle 336

A client's purchasing system ends with the recording of a liability and its eventual payment. Which of the following best describes auditors' primary concern with respect to liabilities resulting from the purchasing system?

(Multiple Choice)

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Question 101

Substantive tests of account balances in the payroll cycle are likely to include the following procedures except

(Multiple Choice)

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Question 102

L. Curtis, a maintenance supervisor, submitted maintenance invoices from a phony repair company and received the checks at a post office box. This should have been prevented by

(Multiple Choice)

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Question 103

The _______ is a set of procedures designed to yield audit evidence of liabilities that were not recorded in the reporting period.

(Short Answer)

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Question 104

Which of the following fraud detection steps could not be performed by CAATs?

(Multiple Choice)

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Question 105

The internal control questionnaire for purchases and accounts payable includes the following questions. Next to each of the questions, indicate the letter of the related transaction assertion.

Are vendor's monthly statements reconciled with individual accounts payable accounts?

Occurrence

Are all purchases made only on the basis of approved purchase requisitions?

Completeness

Are vendors' invoices listed immediately upon receipt?

Accuracy

Correct Answer:

Verified

Are vendor's monthly statements reconciled with individual accounts payable accounts?

Are all purchases made only on the basis of approved purchase requisitions?

Are vendors' invoices listed immediately upon receipt?

Are vendors' invoices matched against purchase orders and receiving reports before a liability is recorded?

Is the accounts payable customer ledger balanced periodically with the general ledger control account?

(Matching)

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Question 106

Failure to record a liability generally results in

(Multiple Choice)

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Question 107

Which of the following accounts would most likely be audited in connection with a related balance sheet account?

(Multiple Choice)

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Question 108

An auditor vouched data for a sample of employees in a payroll register to approved clock card data to provide assurance that

(Multiple Choice)

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Question 109

In determining the effectiveness of an entity's policies and procedures relating to the occurrence assertion for payroll transactions, auditors most likely would inquire about and

(Multiple Choice)

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Question 110

Showing 101 - 110 of 110

A client's purchasing system ends with the recording of a liability and its eventual payment. Which of the following best describes auditors' primary concern with respect to liabilities resulting from the purchasing system?

Substantive tests of account balances in the payroll cycle are likely to include the following procedures except

L. Curtis, a maintenance supervisor, submitted maintenance invoices from a phony repair company and received the checks at a post office box. This should have been prevented by

The _______ is a set of procedures designed to yield audit evidence of liabilities that were not recorded in the reporting period.

Which of the following fraud detection steps could not be performed by CAATs?

Failure to record a liability generally results in

Which of the following accounts would most likely be audited in connection with a related balance sheet account?

An auditor vouched data for a sample of employees in a payroll register to approved clock card data to provide assurance that

In determining the effectiveness of an entity's policies and procedures relating to the occurrence assertion for payroll transactions, auditors most likely would inquire about and

Auditing and Assurance Services

Professional Standards

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash 227

Revenue and Collection Cycle 279

Production Cycle 394

Finance and Investment Cycle 443

Completing the Audit 500

Reports on Audited Financial Statements

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