Exam 8: Tests of Controls

While auditing the sales system of Candle Pty Ltd you have determined that there is a risk of sales being misstated, and that this potential misstatement is associated with the completeness assertion.Which of the following would be an appropriate audit response to this assessed risk?

An auditor will use test data to gain certain assurances with respect to the:

Tests designed to detect payroll payments made after the end of the year that have been incurred in the current year provide assurance about management's assertion of:

An auditor may decide to assess control risk at high for certain assertions because the auditor believes:

Selected items from the payroll register are compared to employee time-cards that have been approved by supervisory personnel.Which of the following assertions for payroll expense does this test?

Which of the following procedures would be most likely to be considered a weakness in an entity's internal controls over payroll?

The cut-off assertion for accounts payable involves testing whether all accounts payable are:

Which of the following tests of control most likely would help assure an auditor that goods shipped are properly billed? Checking that the client has:

For effective internal control, the billing function should be performed by the:

In auditing the purchases system, an auditor vouches a sample of entries in the voucher register (accounting records) to the supporting documents.Which assertion would this test of controls most likely support?

Which of the following internal controls would be most likely to deter the lapping of collections from customers?

Based on a study and evaluation completed at an interim date, the auditor concludes that no significant internal accounting control weaknesses exist.The records and procedures would most likely be tested again at year-end if:

Which of the following procedures most likely would not be included as part of an auditor's tests of controls?

Assessing control risk at a level below high most likely would involve:

When undertaking tests of controls which are related to controls built around a major transaction flow, which assertion would be of least interest to the auditor?

An auditor most likely would limit substantive audit tests of sales transactions when control risk is assessed as low for the occurrence assertion concerning sales transactions and the auditor has already gathered evidence supporting:

Beta Pty Ltd posts to its perpetual inventory records directly from its sales invoices Inadequate control procedures over the invoicing function allow goods to be shipped that are not invoiced.The inadequate control procedures could cause an:

Which of the following is not among the errors that an auditor might include in the test data when auditing a client's IT system?

In a properly-designed accounts payable system, a voucher is prepared after the invoice, purchase order, requisition and receiving report are verified.The next step in the system is:

An approach to testing real-time processing of a computer-based information system is known as the integrated test facility (ITF) technique.This approach involves: