Questions from Auditing and Assurance

Q: Ando Company, a diversified manufacturer, has six divisions that operate

Ando Company, a diversified manufacturer, has six divisions that operate throughout the United States and Puerto Rico. Ando has historically allowed its divisions to operate autonomously. Ando does no...

Q: Purchase cutoff procedures should be designed to test whether all inventory

Purchase cutoff procedures should be designed to test whether all inventory a. Purchased and received before the end of the year was paid for. b. Ordered before the end of the year was received. c. Pu...

Q: Which of the following procedures is least likely to be performed before

Which of the following procedures is least likely to be performed before the balance sheet date? a. Test of internal control over cash. b. Confirmation of receivables. c. Search for unrecorded liabili...

Q: When using confirmations to provide evidence about the completeness assertion for accounts

When using confirmations to provide evidence about the completeness assertion for accounts payable, the appropriate population most likely would be a. Vendors with whom the entity has previously done...

Q: During the year being audited, the Matthews Corporation changed from a

During the year being audited, the Matthews Corporation changed from a system of recording time worked on time sheets to an IT payroll system in which employees record time in and out with magnetic ca...

Q: Which of the following procedures would most likely be considered a weakness

Which of the following procedures would most likely be considered a weakness in an entity’s internal controls over payroll? a. A voucher for the amount of the payroll is prepared in the general accoun...

Q: In meeting the control objective of safeguarding of assets, which department

In meeting the control objective of safeguarding of assets, which department should be responsible for the following?

Q: For an appropriate segregation of duties, journalizing and posting summary payroll

For an appropriate segregation of duties, journalizing and posting summary payroll transactions should be assigned to a. The treasurer’s department. b. General accounting. c. Payroll accounting. d. Th...

Q: The purpose of segregating the duties of hiring personnel and distributing payroll

The purpose of segregating the duties of hiring personnel and distributing payroll checks is to separate the a. Human resource function from the controllership function. b. Administrative controls fro...

Q: An auditor who is testing IT controls in a payroll system would

An auditor who is testing IT controls in a payroll system would most likely use test data (discussed in Advanced Module 2 in Chapter 7) that contain conditions such as a. Deductions not authorized by...