Exam 7: Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts, Audit of the Payroll and Personnel Cycle, Audit of the Inventory and Warehousing Cycle

The basis for the auditor's verification of inventory pricing and compilation is the client's inventory listing. Describe the information that should be included in this listing.

Which of the following statements about the payroll and personnel cycle is correct?

Internal controls for prepaid insurance are typically categorized into all but which of the following?

The payroll cycle consists of how many classes of transactions?

The audit of _ ________ _ is often the most difficult and complex part of an audit.

The extent to which auditors verify current period acquisitions of property, plant and equipment normally depends upon:

Which of the following is not a category of tests commonly associated with the audit of manufacturing equipment?

Most systems of internal control for payroll are:

Auditor tests of physical controls over raw materials, work- in- process, and finished goods are performed by:

Most companies use an imprest account to pay the payroll. Which of the following is not an advantage of such an account?

The auditor ________ to test the accuracy or classification of fixed assets recorded in prior periods.

Auditors may extend their tests of payroll in which of the following circumstances?

What types of tests are available to an auditor who wishes to test the physical control over inventory?

What are two possible reasons that internal controls over payroll are effective for most companies?

In deciding the useful life of an asset, the company's policy is relatively unimportant.

When may auditors observe the physical inventory count?

Records that include data such as employment date, performance ratings and pay rates are the:

Once the initial audit of a newly constructed industrial plant has been performed, with respect to consistency, which of the following is of least concern to the continuing auditor in the following year?

Wages expense is normally considered to be associated with the acquisition and payment cycle.

The approach used to verify manufacturing equipment is different than the one used to verify: