Auditing Chapter 14 Quiz, Chapter 15 Quiz, Chapter 16 Quiz, and Test #3

Auditing Chapter 14 Quiz, Chapter 15 Quiz, Chapter 16 Quiz, and Test #3

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Chapter 14 Quiz Review of attempt 1 Started on Sunday, March 6, 2011, 10:27 PM Completed on Sunday, March 6, 2011, 11:05 PM Time taken 38 mins 20 secs Grade 4 out of a maximum of 10 ( 40 %) Question 1 Marks: 1 Substantive analytical procedures are commonly used to test prepaid accounts. Answer: True False Correct Marks for this submission: 1/1. Question 2 Marks: 1 Which of the following questions would an auditor least likely include on an internal control questionnaire concerning the initiation and execution of equipment transactions? Choose one answer. a. Are requests for major repairs approved at a higher level than the department initiating the request? b. Are prenumbered purchase orders used for equipment and periodically accounted for? c. Are requests for purchases of equipment reviewed for consideration of soliciting competitive bids? d. Are procedures in place to monitor and properly restrict access to equipment? Incorrect Marks for this submission: 0/1. Question 3 Marks: 1 Which of the following explanations might satisfy an auditor who discovers significant debits to an accumulated depreciation account? Choose one answer. a. Several fully depreciated assets were retired during the year b. Prior years' depreciation charges were erroneously understated c. A reserve for possible loss on retirement has been recorded d. An asset has been recorded at its fair value Incorrect Marks for this submission: 0/1. Question 4 Marks: 1 Prepaid expenses provide economic benefit for longer than a year. Answer:
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True False Correct Marks for this submission: 1/1. Question 5 Marks: 1 The controller of Excello Manufacturing, Inc., wants to use ratio analysis to identify the possible existence of idle equipment or the possibility that equipment has been disposed of without having been written off. Which of the following ratios would best accomplish this objective? Choose one answer. a. Depreciation expense/book value of manufacturing equipment b. Accumulated depreciation/book value of manufacturing equipment c. Repairs and maintenance cost/direct labor costs d. Gross manufacturing equipment cost/units produced Correct Marks for this submission: 1/1. Question 6 Marks: 1 The cutoff assertion for prepaid insurance Choose one answer. a. Is never tested because amounts always are immaterial b. Is best tested as part of the testing of property and equipment purchasing c. Is best tested exclusively by sending confirmations to vendors d. Is best tested by recomputing the unexpired portion of insurance policies in effect Incorrect Marks for this submission: 0/1. Question 7 Marks: 1 Testing a sample of repairs and maintenance expense items to ensure that they were properly classified as repairs as opposed to property, plant, and equipment tests which of the following assertions for the repairs and maintenance expense account? Choose one answer.
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This note was uploaded on 05/06/2011 for the course AUDITING 4505 taught by Professor Messier during the Spring '11 term at University of Minnesota Duluth.

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Auditing Chapter 14 Quiz, Chapter 15 Quiz, Chapter 16 Quiz, and Test #3

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