practice exam final

practice exam final - Select the BEST answer to each...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Select the  BEST  answer to each question from those given.  Each Problem is worth 4 points. 1. "Recorded vouchers (accounts payable entries) in the voucher register (e.g., purchases journal) supported by completed voucher documentation" is a specific example of which management assertion? A) Environment. B) Existence or occurrence. C) Completeness. D) Valuation or allocation. Answer: B 2. Cash disbursements are authorized by A) purchase orders. B) invoices. C) receiving reports. D) vouchers. Answer: D 3. An auditor traced a sample of purchase orders and the related receiving reports to the purchases journal and the cash disbursements journal. The purpose of this substantive audit procedure most likely was to A) identify usually large purchases that should be investigated further. B) verify that cash disbursements were for goods actually received. C) determine that purchases were properly recorded.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
D) test whether payments were for goods actually ordered. Answer: C 4. Which of the following would detect the understatement of a purchase discount? A) Verify the arithmetic valuation or allocation of the purchase journal and the cash disbursements journal. B) Compare purchase invoice terms with disbursement records and checks. C) Compare approved purchase orders to receiving reports. D) Verify the receipt of items ordered and invoiced. Answer: B 5. A weakness in internal control over recording retirements of equipment may cause an auditor to A) inspect certain items of equipment in the plant and trace those items to the accounting records. B) review the subsidiary ledger to ascertain whether depreciation was taken on each item of equipment during the year. C) trace additions to the "other assets" account to search for equipment that is still on hand but no longer being used. D) select certain items of equipment from the accounting records and locate them in the plant. Answer: D
Background image of page 2
the perpetual records. This situation could be the result of the failure to record A) sales. B) sales discounts. C) purchases. D) purchase discounts. Answer: C 7. If an auditor wished to test for the existence or occurrence of inventory, he or she would most likely select a sample of inventory item perpetual records and A) trace additions to the general ledger. B) vouch additions to receiving reports. C) vouch additions to sales invoices. D) trace receipts to receiving reports. Answer: B 8. While observing a client's annual physical inventory, an auditor recorded test counts for several items and noticed that certain test counts were higher than the recorded quantities in the client's perpetual records. This situation could be the result of the client's failure to record A) purchase discounts. B) purchase returns.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 06/11/2008 for the course ACCT 4013 taught by Professor Pitman,m during the Spring '08 term at Texas San Antonio.

Page1 / 15

practice exam final - Select the BEST answer to each...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online