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28 Cards in this Set
- Front
- Back
- 3rd side (hint)
What are the different transaction cycles?
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1) Revenue
2) Expenditure 3) Payroll & Personnel 4) Inventory & Production 5) Property, Plant & Equipment 6) Investments 7) Other Liabilities |
There are 7
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Would following TOC procedure would be a test over SALES or COLLECTIONS?
"Vouch a sample of sales invoices to shipping documents and approved sales orders" |
SALES
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Would following TOC procedure would be a test over SALES or COLLECTIONS?
"Observe mailing of monthly customer statements" |
SALES
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Would following TOC procedure would be a test over SALES or COLLECTIONS?
"Inspect deposit slip and compare to cash summary" |
COLLECTIONS
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Would following TOC procedure would be a test over SALES or COLLECTIONS?
"Observe the matching of remittance advices and check deposit summary" |
COLLECTIONS
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Would following TOC procedure would be a test over PURCHASES or PAYABLES?
"Inspect purchase orders for approved requisition" |
Purchases
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True or False:
Auditing Standards require the final audit documentation to be assembled within 45 days following the report release date. |
FALSE
*must be assembled within 60 days. |
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True or False:
The PCAOB require the final audit documentation to be assembled within 45 days following the report release date. |
TRUE
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Is audit documentation property of the independent auditor or the client?
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Independent auditor
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In determining the nature and extent of audit documentation, the auditor should considere the following:
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1) Risk of material misstatement
2) Extent to which judgement was required in performing the work and evaluating the results 3) Nature of the specific auditing procedure 4) Significance of the evidence obtained 5) Nature & extent of any problems identified 6) The need to document conclusions that may not be obvious |
There are 6
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Is the following included in the permanent file or the current year file?
Copies of stock options |
PERMANENT FILE
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Is the following included in the permanent file or the current year file?
Confirmation Letters |
CURRENT YEAR FILE
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Is the following included in the permanent file or the current year file?
Summaries of signficant audit findings |
CURRENT YEAR FILE
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Is the following included in the permanent file or the current year file?
Copies of Leases |
PERMANENT FILE
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Is the following included in the permanent file or the current year file?
Accounts Receivable Aging |
CURRENT YEAR FILE
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Is the following included in the permanent file or the current year file?
Copies of Bylaws and Articles of Incorporation |
PERMANENT FILE
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Audit documentation can be provided wihtout the client's permission under what three situations?
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1) Part of a voluntary quality review program under the auspices of the AICPA or state society of CPAs
2) If its subpoenaed by a court 3) If its needed as part of an official investigation being conducted by the AICPA, a state CPA society, or under state statues |
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True or False:
Analytical Procedures are required in the planning stage of the audit. |
TRUE
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True or False:
Analytical Procedures are required in the substantive testing stage of the audit. |
FALSE
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True or False:
Analytical Procedures are required in the final stage of the audit. |
TRUE
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List the standard auditing procedures
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1) Foot, Crossfoot, Recalc
2) Inquiry 3) Vouching 4) Examination/Inspection 5) Confirmation 6) Analytical Procedurs 7) Reperformance 8) Reconciliation 9) Observation 10) Tracing 11) Subsequent Events Review |
FIVE CARROTS
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The following procedure tests which assertion?
Examine the last five sales invoices of the year. |
Cut-off
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The following procedure tests which assertion?
Confirmation of accounts with third parties |
Existence
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The following procedure tests which assertion?
Perform inventory observation |
Existence
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The following procedure tests which assertion?
Trace an invoice to the accounts payable aging. |
Completeness
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The following procedure tests which assertion?
Inspection of contracts/debt agreements |
Rights & Obligations
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The following procedure tests which assertion?
Review of all disclosures for compliance with GAAP |
Understandability and Classification
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The following procedure tests which assertion?
Recalculation of allowance for doubtful accounts for reasonableness. |
Allocation & Valuation
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