Audit Final Graded 2 - AUDIT FINAL Grade Details 1....

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AUDIT FINAL
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Grade Details 1. Question: Developing an understanding of the client's business and industry is essential to proficiency as discussed in the general standards of GAAS. Your Answer: True CORRECT False Points Received: 4 of 4 Comments: 2. Question: Ratio analysis only involves a year-to-year comparison of account balances. Your Answer: Points Received: 4 of 4 Comments: 3. Question: When control risk is assessed at a maximum level, the auditor assumes that the internal controls are reliable in preventing or detecting material misstatements. Your Answer:
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Points Received: 4 of 4 Comments: 4. Question: Vouching recorded transactions involves taking a sample from the journal and tracing them back to the source documents to ensure they occurred. Your Answer: Points Received: 4 of 4 Comments: 5. Question: Audit documentation serves as support for the financial statements. Your Answer: Points Received: 4 of 4 Comments: 6. Question: In analysis of the results of audit sampling, an auditor may determine that the sample size must be increased.
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Your Answer: Points Received: 4 of 4 Comments: 7. Question: The revenue cycle considered by auditors includes the sales process but not collections. Your Answer: Points Received: 4 of 4 Comments: 8. Question: Inventory is complex and typically considered a high-risk area in audits of service firms. Your Answer: Points Received: 4 of 4 Comments: 9.
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Question: An auditor can utilize a cross-sectional analysis for a client operating in multiple locations to identify areas of further inventory testing. Your Answer: Points Received: 4 of 4 Comments: 10. Question: Legal expenses are reviewed by auditors for possible litigation and related FAS 5 treatment. Your Answer: Points Received: 4 of 4 Comments: 11. Question: An imprest payroll account will never reach a zero balance. Your Answer: Points Received: 4 of 4
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Comments: 12. Question: Strong internal control over the cash account requires that the same person who is responsible for making the bank deposit not post the increase to cash in the accounting system. Your Answer: Points Received: 4 of 4 Comments: 13. Question: A turnaround document is an effective completeness control because they list essential information for further processing of the collection on account. Your Answer: Points Received: 0 of 4 Comments: 14. Question: Auditors will perform an analysis of leases using SFAS 13 criteria and other EITF statements to substantiate the accounting treatment. Your Answer:
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Points Received: 4 of 4 Comments: 15. Question: Contingencies are considered by the auditor in relation to the SFAS No. 5 criteria to determine whether material contingencies exist with the client and, if so, that they are properly accrued or disclosed.
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Audit Final Graded 2 - AUDIT FINAL Grade Details 1....

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