confirms the transaction with the Secretary of State in the state of incorporation. b. verifies the existence of option holders in the entity’s payroll records or stock ledgers. c. determine that sufficient treasury stock is available to cover any new stock issued. d. trace the authorization for the transaction to a vote of the board of directors Question 7: Which of the following includes all payroll transactions processed by the accounting system for a given period of time? a. Payroll journal b. Payroll transaction file c. Time report d. Payroll summary
Question 8: Receipt of ordered materials by the receiving department will generate the completion of a form called the: a. bill of lading. b. receiving report. c. materials requisition. d. inventory acquisition summary. Question 9: is normally characterized as a difficult and complex account to audit. a. Property, plant and equipment b. Cash c. Inventory d. Prepaid insurance Question 10: Which of the following procedures is most likely to prevent the improper disposal of equipment? a. Separation of duties between those authorised to dispose of equipment and those authorised to approve removal work orders. b. The use of serial numbers to identify equipment that could be sold. c. Periodic comparison of removal work order to authorising documentation. d. Periodic analysis of the scrap sales and the repairs and maintenance accounts Question 11: An auditor is verifying valuation of building which has been self- constructed by the client. Which of the following documents is least relevant to the auditor for verification purposes? a. Bills of contractor b. Minutes of meeting of board of directors c. Certificates of engineer and architect d. Loan agreement
Question 12: Which of the following is not an objective of the auditor's examination of notes payable?
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- Fall '19