Question 1

Which of the following is required of an auditor who is testing the fair value of options in share-based compensation?

Accepted Answer

A)  Using a specialist. 
B)  Testing the inputs used in the valuation model. 
C)  Becoming an expert in option-pricing. 
D)  Using the work of internal auditors. 
A)  Using a specialist. 
B)  Testing the inputs used in the valuation model. 
C)  Becoming an expert in option-pricing. 
D)  Using the work of internal auditors.

Question 2

Which of the following could test the assertion of classification for payroll-related liabilities?

Accepted Answer

A)  Compare items in accrued payroll taxes to the supporting payroll tax return. 
B)  Search for unrecorded liabilities. 
C)  Examine payroll tax returns to determine that the expense was recorded in the proper period. 
D)  Review payroll liabilities for proper reporting as short- or long-term. 
A)  Compare items in accrued payroll taxes to the supporting payroll tax return. 
B)  Search for unrecorded liabilities. 
C)  Examine payroll tax returns to determine that the expense was recorded in the proper period. 
D)  Review payroll liabilities for proper reporting as short- or long-term.

Question 3

Generally,is the inherent risk level for the human resource management process set at low,moderate or high?
 For what area of the process might the appropriate level differ from the previous answer?
 Why?

Accepted Answer

Inherent risk is normally set low for th

Question 4

An auditor most likely would assess control risk at the maximum if the payroll department supervisor is responsible for

Accepted Answer

A)  Examining authorization forms for new employees. 
B)  Comparing payroll registers with original batch transmittal data. 
C)  Authorizing payroll rate changes for all employees. 
D)  Hiring all subordinate payroll department employees. 
A)  Examining authorization forms for new employees. 
B)  Comparing payroll registers with original batch transmittal data. 
C)  Authorizing payroll rate changes for all employees. 
D)  Hiring all subordinate payroll department employees.

Which of the following is required of an auditor who is testing the fair value of options in share-based compensation?

Which of the following could test the assertion of classification for payroll-related liabilities?

Generally,is the inherent risk level for the human resource management process set at low,moderate or high? For what area of the process might the appropriate level differ from the previous answer? Why?

An auditor most likely would assess control risk at the maximum if the payroll department supervisor is responsible for

An Introduction to Assurance and Financial Statement Auditing

The Financial Statement Auditing Environment

Audit Planning,Types of Audit Tests,and Materiality

Risk Assessment

Evidence and Documentation

Internal Control in a Financial Statement Audit

Auditing Internal Control Over Financial Reporting

Audit Sampling: An Overview and Application to Tests of Controls

Audit Sampling: An Application to Substantive Tests of Account Balances

Auditing the Revenue Process

Auditing the Purchasing Process

Assurance,Attestation,and Internal Auditing Services

Auditing the Financinginvesting Process: Prepaid Expenses, Intangible Assets, and Property, Plant, and Equipment

Auditing the Financinginvesting Process: Long-Term Liabilities, Stockholders Equity, and Income Statement Accounts

Auditing the Financinginvesting Process: Cash and Investments

Completing the Audit Engagement

Reports on Audited Financial Statements

Professional Conduct,Independence,and Quality Control

Legal Liability

Assurance,Attestation,and Internal Auditing Services

Filters

Exam 12: Auditing the Human Resource Management Process

Which of the following is required of an auditor who is testing the fair value of options in share-based compensation?

Which of the following could test the assertion of classification for payroll-related liabilities?

Generally,is the inherent risk level for the human resource management process set at low,moderate or high? For what area of the process might the appropriate level differ from the previous answer? Why?

An auditor most likely would assess control risk at the maximum if the payroll department supervisor is responsible for

An Introduction to Assurance and Financial Statement Auditing

The Financial Statement Auditing Environment

Audit Planning,Types of Audit Tests,and Materiality

Risk Assessment

Evidence and Documentation

Internal Control in a Financial Statement Audit

Auditing Internal Control Over Financial Reporting

Audit Sampling: An Overview and Application to Tests of Controls

Audit Sampling: An Application to Substantive Tests of Account Balances

Auditing the Revenue Process

Auditing the Purchasing Process

Assurance,Attestation,and Internal Auditing Services

Auditing the Financinginvesting Process: Prepaid Expenses, Intangible Assets, and Property, Plant, and Equipment

Auditing the Financinginvesting Process: Long-Term Liabilities, Stockholders Equity, and Income Statement Accounts

Auditing the Financinginvesting Process: Cash and Investments

Completing the Audit Engagement

Reports on Audited Financial Statements

Professional Conduct,Independence,and Quality Control

Legal Liability

Assurance,Attestation,and Internal Auditing Services

Filters