Ch 8,10,11

Front 1

which account does not appear in the aq and exp cycle?

Back 1

sales returns

Front 2

Which would not overstate current period net income?

Back 2

failing to record a check paying an item in vouchers payable

Front 3

A client's purchase system ends with recording a liab and its eventual pymt, which describes an auditor's primary concern with respect to liab resulting from the purchase system?

Back 3

accounts payable are not materially understated

Front 4

which is an internal control activity that could prevent a pd disbursement voucher from being presented for pymt a second time?

Back 4

the official who signs the check should compare the check with the voucher and should stamp paid on the voucher doc

Front 5

budd delivers hardware to his relative at wholesale prices, and he's prob able to accomplish this because of lake's poor internal controls over

Back 5

purchase orders

Front 6

which is the best audit procedure for determining the existence of unrecorded liab?

Back 6

examine a sample of cash disbursements in the period subsequent to YE

Front 7

to determine if AP is complete, auditors perform tests to verify that all merchandise received has been recorded. the population for this test is all

Back 7

receiving reports

Front 8

a furniture company ordered tables, but the supplier only sent half. which control would prevent overpaying?

Back 8

personell in the furniture company's purchasing dpt should compare the purchase requisition to the purchase order

Front 9

an audit team would most likely examine the detail support for which of the following charges?

Back 9

legal expense

Front 10

when auditing liab account balances, auditors are most concerned with mgts assertion about

Back 10

completeness

Front 11

in a test of controls, auditors may trace receiving reports to vouchers recorded in the voucher register. this is a test for

Back 11

completeness

Front 12

loan covenants are used for which reason?

Back 12

to protect the lender from the borrower substantially weakening the borrower's financial position

Front 13

which is the most important audit consideration when examing the stockholders equity section of a BS?

Back 13

entries trace to resolutions in minutes of BOD meetings

Front 14

if the auditors discover that the carrying amt of a client's investments is overstated bc of a loss in value that is other than a temp decline in market value, they should insist that

Back 14

the loss in value be recognized in the financial stmts

Front 15

the auditors should insist that a representative of the client be present during inspection and count of securities to

Back 15

acknowledge the receipt of securities returned

Front 16

when a client company does not maintain its own capital stock records, the auditors should obtain written confirmation from the transfer agent and registrar concerning

Back 16

the number of shares issues and outstanding

Front 17

an audit team would most likely verify the interest earned on bond investments by

Back 17

recomputing the interest earned on the basis of face amt, IR, and period earned

Front 18

a client has a large and active investment portfolio that is kept in a bank safe deposit box. if the auditors were unable to count securities at the BS date, they most likely will

Back 18

request the client have the bank seal the box until the auditors can count at a subsequent date

Front 19

which question would auditors most likely include on an internal control questionairre for notes payable?

Back 19

are direct borrowing of NP authorized by the BOD?

Front 20

an audit team's purpose in reviewing the documentation concerning the renewal of a NP shortly after the BS date most likely is to obtain evidence concerning mgt's assertion about

Back 20

classification

Front 21

the main purpose of mgt representation is to

Back 21

impress on mgt its ultimate responsibility for the FS's and disclosures

Front 22

A type I subsequent event involves subsequent info about a condition that existed at BS date. Subsequent knowledge of which would cause the entity to adjust its Dec 31 FS's?

Back 22

settlement of litigation in Febr for 100k that had been estimated at 12k in Dec

Front 23

A griffin finished her audit of YE Dec 31 on Jan 30th and later learned of stock split on feb 5th. The proper form of dual dating the reports is

Back 23

january 30, 2009, except as to Note X, which is dated February 5, 2009

Front 24

prior to the audit report release date, auditors have a responsibility related to mgt's disclosure of subsequent events until

Back 24

the audit report release date

Front 25

the auditing standards regarding "subsequent discovery of facts that existed at the BS date" refers to knowledge obtained after

Back 25

the audit report release date

Front 26

which is ordinarily performed last in the audit examination?

Back 26

performing a review for subsequent events

Front 27

which procedure is least likely to be performed in conjunction with the audit of revenue and expense accounts

Back 27

sampling and investigation of individual transactions affecting revenue and expense accounts

Front 28

if, after the audit report release date, auditors determine an important auditing procedure was omitted, which initial course of action is most appropriate?

Back 28

determine whether the omitted procedure is important in supporting the auditors opinion on the entity's FS's

Front 29

Hall's management representations normally would be dated

Back 29

march 24, yr 2, the date that hall completed gathering sufficient appropriate evidence

Front 30

which substantive procedure should auditors ordinarily perform regarding subsequent events?

Back 30

compare the latest available interim financial stmts witth the financial stmts being audited

Front 31

the primary reason auditors request responses to attorney letters is to provide auditors

Back 31

corroboration of the info furnished by mgt about litigation, claims, and assesments

Front 32

the scope of an audit is NOGT restricted when an attorney letter limits the response to

Back 32

matters to which the attorney has given substantial attn in the form of legal representation

Front 33

if loss is "probable and estimable" then

Back 33

book the amt

Front 34

if loss is "reasonably possible" then

Back 34

disclose in footnotes

Front 35

if loss is "remotely possible" then

Back 35

don't do anything