Questions from Auditing and Assurance

Q: What are the primary control procedures to ensure completeness of recorded revenues

What are the primary control procedures to ensure completeness of recorded revenues?

Q: What type of opinion would be issued by the audit team as

What type of opinion would be issued by the audit team as the result of a scope limitation on the examination of internal control over financial reporting?

Q: What is due care? To what standards are auditors held with

What is due care? To what standards are auditors held with respect to due care?

Q: What types of audit procedures are typically performed in testing operating effectiveness

What types of audit procedures are typically performed in testing operating effectiveness of controls over the revenue and collection cycle?

Q: When a company that sells its products with a positive gross profit

When a company that sells its products with a positive gross profit increases its sales by 15 percent and its cost of goods sold by 7 percent, the cost of goods sold ratio will a. Increase. b. Decreas...

Q: Effectiveness of audit procedures would be reduced by a. Selecting

Effectiveness of audit procedures would be reduced by a. Selecting larger sample sizes for audit. b. Performing audit procedures at the fiscal year-end date as opposed to the interim period. c. Decidi...

Q: The primary purpose for obtaining an understanding of a nonpublic audit client’s

The primary purpose for obtaining an understanding of a nonpublic audit client’s internal control is to a. Provide a basis for making constructive suggestions in a management letter. b. Determine the...

Q: It is acceptable under generally accepted auditing standards for an audit team

It is acceptable under generally accepted auditing standards for an audit team to a. Assess risk of material misstatement at high and achieve an acceptably low audit risk by performing extensive subst...

Q: Which of the following is a preventive control? a.

Which of the following is a preventive control? a. Reconciliation of a bank account. b. Recalculation of a sample of payroll entries by internal auditors. c. Separation of duties between the payroll a...

Q: Which of the following accounts is not normally part of the revenue

Which of the following accounts is not normally part of the revenue and collection cycle? a. Sales. b. Accounts Receivable. c. Cash. d. Purchases Returns and Allowances.