ACC450_MC_Solutions_Chpt5

ACC450_MC_Solutions_Chpt5 - Chapter 5: SOLUTIONS FOR...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 5: SOLUTIONS FOR MULTIPLE-CHOICE QUESTIONS 5.39 a. Incorrect Effectiveness and efficiency is an objectives category, not a fundamental  component. b. Correct “People” is the most important fundamental component. c. Incorrect Reliability of financial reporting is an objectives category, not a  fundamental component. d. Incorrect Compliance with laws and regulations is an objectives category, not a  fundamental component. 5.40 a. Incorrect Management letter suggestions are a secondary purpose. b. Correct These are auditors’ responsibilities under GAAS. c. Incorrect This does not only relate to internal control. d. Incorrect Communication of control-related matters is a secondary purpose. 5.41 a. Incorrect Larger sample sizes expand audit procedures. b. Incorrect Performing procedures at year-end instead of at interim generally  represents stricter application. c. Incorrect External evidence represents stricter application. d. Correct Performing procedures at an interim date is less effective. 5.42 a. Incorrect See answer d. b. Incorrect See answer d. c. Incorrect See answer d. d. Correct Financial totals can be used as input, processing, and output controls 5.43 a. Incorrect This is a general control that secures the hardware. b. Incorrect This is a general control over software changes. c. Incorrect This is a general control for all data. d. Correct  This is an output control. 5.44  a. Incorrect This is a detective control. b. Incorrect This is a detective control. c. Correct This is a preventive control. d. Incorrect This is a detective control. 5.45 a. Incorrect The absolute amount of cost is irrelevant. Year-end substantive work  usually costs more than control evaluation work. b. Correct The substantive testing cost savings exceeds the control evaluation cost.
Background image of page 1

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

View Full DocumentRight Arrow Icon
c. Incorrect Whether the cost of control work exceeds (or does not exceed) the cost of  year-end work is irrelevant. Efficiency relates to the cost that can be saved  as a result of control evaluation work. d.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 6

ACC450_MC_Solutions_Chpt5 - Chapter 5: SOLUTIONS FOR...

This preview shows document pages 1 - 3. Sign up to view the full document.

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