Question 1

AU 336 applies to:

Accepted Answer

A)  using the work of an actuary. 
B)  whether a pension obligation is funded or not. 
C)  the responsibility the auditor assumes when auditing pension plans. 
D)  All of the above. 
A)  using the work of an actuary. 
B)  whether a pension obligation is funded or not. 
C)  the responsibility the auditor assumes when auditing pension plans. 
D)  All of the above.

Question 2

Which of the following is considered a cash equivalent?

Accepted Answer

A)  Commercial paper. 
B)  Compensating balances. 
C)  Money market fund. 
D)  Both a and c 
A)  Commercial paper. 
B)  Compensating balances. 
C)  Money market fund. 
D)  Both a and c

Question 3

To test the valuation assertion for debt, an auditor:

Accepted Answer

A)  recalculates the amortization of premium or discount on debt. 
B)  recalculates interest payments. 
C)  recalculates amounts due. 
D)  Both a and b 
A)  recalculates the amortization of premium or discount on debt. 
B)  recalculates interest payments. 
C)  recalculates amounts due. 
D)  Both a and b

Question 4

Auditing of interbank transfers occurs:

Accepted Answer

A)  at year-end. 
B)  after year-end. 
C)  prior to year-end. 
D)  All of the above, depending on the circumstances. 
A)  at year-end. 
B)  after year-end. 
C)  prior to year-end. 
D)  All of the above, depending on the circumstances.

Question 5

Match the audit step below with its appropriate area. You may use an area more than once and more than one area may apply.
(a) Trace amounts per the cash disbursement journal to the appropriate liability account:
(b) Trace the stock issued per the transfer agent report to equity:
(c) Trace EPS to net income and stockholders' equity:
(d) Trace overfunded liability amount to actuary report:
(e) Recalculate interest expense using face amount and current terms:
(f) Recalculate compensation expense using stock compensation plans approved by the board of directors:
(g) Recalculate stock compensation expense using a model such as Black-Scholes for valuation:
(h) Recalculate taxes payable:
(i) Review debt covenants:
(j) Review cash equivalents for maturity:

Accepted Answer

(a) Trace amounts per the cash disbursem

Question 6

Pensions are always defined-benefit plans.

Accepted Answer

A) True 
 B)False

Question 7

Comprehensive income:

Accepted Answer

A)  is the change in equity resulting from nonowner sources except net income. 
B)  is the changes in equity resulting from nonowner sources. 
C)  excludes gains and losses on marketable securities. 
D)  None of the above. 
A)  is the change in equity resulting from nonowner sources except net income. 
B)  is the changes in equity resulting from nonowner sources. 
C)  excludes gains and losses on marketable securities. 
D)  None of the above.

Question 8

A proof of cash consists of which of the following:

Accepted Answer

A)  transfers per books. 
B)  bank adjustments. 
C)  bank debit memos. 
D)  All of the above. 
A)  transfers per books. 
B)  bank adjustments. 
C)  bank debit memos. 
D)  All of the above.

AU 336 applies to:

Which of the following is considered a cash equivalent?

To test the valuation assertion for debt, an auditor:

Auditing of interbank transfers occurs:

Pensions are always defined-benefit plans.

Comprehensive income:

A proof of cash consists of which of the following:

An Introduction to Auditing

Overview of an Integrated Audit

The Auditors Role in Society

Legal Environment Affecting Audits Pt Iii Executing an Integrated Audit

Client Acceptance and Continuance and Preliminary Engagement Procedures

Audit Planning and Risk Assessment

Internal Control, Understanding the Clients Internal Control Over Financial Reporting and Auditing Design Effectiveness

Planning and Testing Operating Effectiveness of Internal Control Over Financial Reporting

Substantive Procedures and the Financial Statement Audit

Auditing Revenue Process: Sales, Billing and Collection in the Health-Care Provider and Retailing Industries

Completing the Integrated Audit and Reporting

The Acquisition and Payments Cycle and Related Accounts: Purchases, Cash Disbursements and Other Related Activities in the Automotive Industry

Auditing Human Resources Cycle Process: Personnel and Payroll in Service Industries

Auditing Inventory Processes: Tracking and Costing Products in the Land Development and Home Building Industry

Topics Beyond the Integrated Audit

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Exam 15: Assets, Liabilities and Equity Related to the Financing Cycle

AU 336 applies to:

Which of the following is considered a cash equivalent?

To test the valuation assertion for debt, an auditor:

Auditing of interbank transfers occurs:

Pensions are always defined-benefit plans.

Comprehensive income:

A proof of cash consists of which of the following:

An Introduction to Auditing

Overview of an Integrated Audit

The Auditors Role in Society

Legal Environment Affecting Audits Pt Iii Executing an Integrated Audit

Client Acceptance and Continuance and Preliminary Engagement Procedures

Audit Planning and Risk Assessment

Internal Control, Understanding the Clients Internal Control Over Financial Reporting and Auditing Design Effectiveness

Planning and Testing Operating Effectiveness of Internal Control Over Financial Reporting

Substantive Procedures and the Financial Statement Audit

Auditing Revenue Process: Sales, Billing and Collection in the Health-Care Provider and Retailing Industries

Completing the Integrated Audit and Reporting

The Acquisition and Payments Cycle and Related Accounts: Purchases, Cash Disbursements and Other Related Activities in the Automotive Industry

Auditing Human Resources Cycle Process: Personnel and Payroll in Service Industries

Auditing Inventory Processes: Tracking and Costing Products in the Land Development and Home Building Industry

Topics Beyond the Integrated Audit

Filters