Questions from Auditing and Assurance

Q: What are the short-term effect and the long-term

What are the short-term effect and the long-term effect of improperly capitalizing expenditures on the financial statements?

Q: What makes the recording of inventory at its proper amount difficult on

What makes the recording of inventory at its proper amount difficult on the financial statements?

Q: What primary functions should be separated in the acquisition and expenditure cycle

What primary functions should be separated in the acquisition and expenditure cycle?

Q: An audit team would most likely verify the interest earned on bond

An audit team would most likely verify the interest earned on bond investments by a. Vouching the receipt and deposit of interest checks. b. Confirming the bond interest rate with the issuer of the bo...

Q: What features of the cost accounting system would be expected to prevent

What features of the cost accounting system would be expected to prevent the omission of recording materials used in production?

Q: Which of the following procedures would best prevent or detect the theft

Which of the following procedures would best prevent or detect the theft of valuable items from an inventory that consists of hundreds of different items selling for $1 to $10 and a few items selling...

Q: How could auditors have discovered the off-balance-sheet financing

How could auditors have discovered the off-balance-sheet financing described in the Off-Balance-Sheet Inventory Financing case?

Q: Which of the following accounts does not appear in the acquisition and

Which of the following accounts does not appear in the acquisition and expenditure cycle? a. Cash. b. Purchases returns. c. Sales returns. d. Prepaid insurance.

Q: Which of the following audit procedures would not likely be performed for

Which of the following audit procedures would not likely be performed for audits of investments? a. Read board of directors’ minutes for authorization of investment strategies. b. Confirm investments...

Q: An audit team testing long-term investments would ordinarily use analytical

An audit team testing long-term investments would ordinarily use analytical procedures to ascertain the reasonableness of the a. Existence of unrealized gains or losses. b. Completeness of recorded in...