Auditing Chapter 14 and 15 quizzes

Auditing Chapter 14 and 15 quizzes - 1 Marks: 1 The auditor...

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1 Marks: 1 The auditor is most likely to seek information from the plant manager with respect to the Choose one answer. a. Adequacy of the provision for uncollectible accounts b. Appropriateness of physical inventory observation procedures c. Existence of obsolete machinery d. Deferral or procurement of certain necessary insurance coverage Correct Marks for this submission: 1/1. Question 2 Marks: 1 Reviewing capital budgets and comparing the amounts spent with amounts budgeted is an example of a substantive analytical procedure for auditing prepaid accounts. Answer: True False Incorrect Marks for this submission: 0/1. Question 3 Marks: 1 To achieve effective control over fixed asset additions, a company should establish activities that require Choose one answer. a. Capitalization of the cost of fixed asset additions in excess of a specific dollar amount b. Performance of recurring fixed asset maintenance work solely by maintenance department employees c. Classification as investments any fixed asset additions that are not used in the business d. Authorization and approval of major fixed asset additions Correct Marks for this submission: 1/1. Question 4 Marks: 1 When there are numerous property and equipment transactions during the year, an auditor planning to set control risk at the minimum level usually plans to obtain an understanding of internal control and to perform Choose one answer. a. Tests of controls and extensive tests of property and equipment balances at the end of the year
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c. Tests of controls and limited tests of current year property and equipment transactions d. Analytical procedures for property and equipment balances at the end of the year Incorrect Marks for this submission: 0/1. Question 5 Marks: 1 Recomputing the unexpired portion of insurance policies in effect tests which of the following assertions are for prepaid insurance? Choose one answer. a. Existence b. Classification c. Rights and obligations d. Valuation Correct Marks for this submission: 1/1. Question 6 Marks: 1 An auditor analyzes repairs and maintenance accounts primarily to obtain evidence in support of the audit assertion that all Choose one answer. a. Noncapitalizable expenditures for repairs and maintenance have been recorded in the proper period b. Expenditures for property and equipment have been recorded in the proper period c. Noncapitalizable expenditures for repairs and maintenance have been properly charged to expense d. Expenditures for property and equipment have not been charged to expenses Incorrect Marks for this submission: 0/1. Question 7 Marks: 1 In the examination of property, plant, and equipment, the auditor tries to determine all of the following except the 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 and 15 quizzes - 1 Marks: 1 The auditor...

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