Questions from Auditing and Assurance

Q: Which of the following combinations is a good way to conceal employee

Which of the following combinations is a good way to conceal employee fraud but an ineffective means of perpetrating management (financial reporting) fraud? a. Overstating sales revenue and overstatin...

Q: Allison Everhart, an employee in accounts payable, believes she can

Allison Everhart, an employee in accounts payable, believes she can run a fictitious invoice through the accounts payable system and collect the money. She knows payments are subject to an audit. Whic...

Q: Which of these arrangements of duties could most likely lead to an

Which of these arrangements of duties could most likely lead to an embezzlement or theft? a. The inventory warehouse manager has responsibility for making the physical inventory observation and reconc...

Q: If the auditor believes that a misstatement is or might be intentional

If the auditor believes that a misstatement is or might be intentional and the effect on the financial statements could be material or cannot be readily determined, the auditor should do which of the...

Q: In what way can audit procedures be modified to address assessed fraud

In what way can audit procedures be modified to address assessed fraud risks? a. Obtain more reliable information. b. Perform procedures close to year-end. c. Apply computer-assisted techniques to all...

Q: Incorporating elements of unpredictability in the selection of audit procedures to be

Incorporating elements of unpredictability in the selection of audit procedures to be performed by auditors include all of the following except a. Varying the timing of the audit procedures. b. Select...

Q: Is there anything odd about these two situations? (a)

Is there anything odd about these two situations? (a) A check to Larson Electric Supply was endorsed with “Larson Electric” above the signature of “Eloise Garfunkle.” (b) Numerous checks were issued a...

Q: How can a proof of cash reveal unrecorded cash deposit and cash

How can a proof of cash reveal unrecorded cash deposit and cash payment transactions?

Q: Fraud risk factors are events or conditions that indicate I.

Fraud risk factors are events or conditions that indicate I. An incentive or pressure to perpetrate fraud. II. An opportunity to carry out the fraud. III. An attitude or rationalization that justifies...

Q: The Runge Controls Corporation manufactures and markets electrical control systems: temperature

The Runge Controls Corporation manufactures and markets electrical control systems: temperature controls, machine controls, burglar alarms, and the like. The company acquires electrical and semiconduc...