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Unformatted text preview: c. Cookie‐jar reserves. d. Backdating stock options. e. None of the above. 94. Corruption would not include: a. Bribery of a government official. b. Kickbacks to a purchasing agent. c. Free vacation to an acquisition agent. d. Stealing petty cash by a purchasing agent. e. None of the above. 95. Which is not a detective control? a. Reconciliations. b. Training of employees. c. Reviews. d. Surprise cash count. e. None of the above. 96. Which is not a preventive control? a. Process redesign. b. Segregation of duty. c. Passwords on a computer. d. Job rotation. e. Requiring approvals. Chapter 4:
2. One of the two fieldwork stages of gathering audit evidence is the account balance‐testing phase. a. True b. False 3. A detection risk is a risk that an account or transactions contain material misstatements before the effects of the controls. a. True b. False 4. A control risk is a risk that a material error in the balance or transaction class will not be prevented or detected. a. True b. False 5. Substantive auditing tests do not include analytical procedures. a. True Page 13 of 44 ...
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- Summer '10