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ACC 506 Chapter
1. The audit risk model includes the
four risks listed below. Place the correct number ofthe type ofrisk with the
related definition below.
The probability that audit procedures will fail to produce
evidence of material
ACC 506 Sampling Practice
We discussed an example of the use of sampling to determine whether individuals
their driving distance by using a Wilson golf ball. Indicate whether each of the following
situations reflects sampling risk (S) or
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Measure the sample items. (each sample go lfer. h.lE
Assume an average distance of 6'7
yards was measured for Wilson's ball.
ball is hit "longer" than the
Evaluating sample results. (can auditors co
To determine if a pirticular trait or attribute exists. Used to examine in
Little lershe\"s Kisses Internal Clontrol
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Vanables Sam i TO determine ifthe dollar balance in an account is correct
l.Detanlhe the ottecuVe Ofsamplhg.Ex)Isthe bJancc h ac9 ntS rece a e
Determine the characteristic of interest. E*) pg!]arvalqe of
fa ly stated?
Accounts Receivabte, Notes Receivabte.
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In-Class Team Case: 7-44
A-Controls appear strong; Auditor
decides to test controls to extent possible*
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Chapter 1 Organizations and Organizational Effectiveness
1) Studying organizations is relatively easy because they are tangible. That is, we can see and touch them.
2) One of the difficulties in
CH 3 MULTIPLE CHOICE
1. The narratives, diagrams, charts, and other written materials that explain how a system works are collectively called
a) b) c) d) documentation. data flows. flowcharts. schema.
2. One popular means of documenting a system is to dev
Chapter 17 MULTIPLE CHOICE
1. Explicitly identifying the different employees who participate in each event by their job functions is helpful when verifying
a) b) c) d) Internal controls. Job descriptions. Proper supervision. Segregation of duties.
CH 18 MULTIPLE CHOICE
1. Organizations continually face the need for new, faster, and more reliable ways of obtaining information. One reason why companies change their systems is to increase quality, quantity, and the speed with which information can be
CH 19 MULTIPLE CHOICE
1. Which statement below regarding the development of an AIS is false?
a) A newly designed AIS always meets user needs for a time period. b) Changes to the AIS are often difficult to make after requirements have been frozen into spec
Chapter 20 MULTIPLE CHOICE
1. What is one activity that is not one of the responsibilities of accountants to help keep a project on track?
a) b) c) d) ensuring that the project is on schedule evaluating and measuring benefits helping programmers write cod
Chapter 8 MULTIPLE CHOICE
1. Concerning virtual private networks (VPN), which of the following is not true?
a) VPNs provide the functionality of a privately owned network using the Internet. b) Using VPN software to encrypt information while it is in tran
CH 12 MULTIPLE CHOICE
1. The AIS compiles and feeds information among the business cycles. What is the relationship between the revenue and production cycles regarding the exchange of information?
a) The revenue cycle provides sales forecast and customer
Chapter 11 MULTIPLE CHOICE
1. In the expenditure cycle, the primary external exchange of information occurs with
a) b) c) d) customers. suppliers. management. the audit committee.
2. Within the expenditure cycle, internal information flows
a) b) c) d) fro
Chapter 9 MULTIPLE CHOICE
1. Which characteristics below is not a characteristic of auditing?
a) b) c) d) evidence collection establishing audit criteria objectivity systems development
2. Auditing involves the
a) b) c) d) collection, review, and document
Chapter 10 MULTIPLE CHOICE
1. The credit manager reports to the _ and the treasurer reports to the _.
a) b) c) d) controller; vice president of finance treasurer; controller marketing manager; vice president of finance treasurer; vice president of finance
Chapter 7 MULTIPLE CHOICE
1. The AICPA and the CICA have created an evaluation service known as SysTrust. SysTrust follows four principles to determine if a system is reliable. The reliability principle that states that users must be able to enter, update
Chapter 4 MULTIPLE CHOICE 1. What is the most popular type of database? a) b) c) d) hierarchical relational object-oriented network
2. Using a file-oriented approach to data and information, data is maintained in a) b) c) d) a central database. many inter
Chapter 16 MULTIPLE CHOICE
1. Integrating separate REA diagrams developed for individual transaction cycles into a single, comprehensive enterprise-wide data model
a) is possible. b) requires understanding what the cardinalities in each separate diagram r
Chapter 15 MULTIPLE CHOICE
1. There are five basic stages in the database design process. The step which includes developing the conceptual-, external-, and internal-level schema into the actual database structures is known as
a) b) c) d) stage one. stage
Chapter 13 MULTIPLE CHOICE 1. Which activity below is not performed by the HRM? a) b) c) d) compensation training discharge recruitment and hiring
2. In most companies the HRM/payroll cycle activities are accomplished by two separate systems. Which task b
Chapter 14 MULTIPLE CHOICE
1. The general ledger and reporting system consists of the _ involved in _ the general ledger and _ reports.
a) b) c) d) business transactions; updating; processing data processing; business transactions for; printing informatio
Chapter 6 MULTIPLE CHOICE
1. What is one reason why AIS threats are increasing?
a) b) c) d) LANs and client/server systems are easier to control than centralized, mainframe systems. Many companies do not realize that data security is crucial to their surv
Chapter 5 MULTIPLE CHOICE
1. Perhaps the most striking fact about natural disasters in relation to AIS controls is that
a) b) c) d) many companies in one locale can be seriously affected at one time by a disaster. losses are absolutely unpreventable. ther
1. An agreement between two entities to exchange goods or services or any other event that can be measured in economic terms by an organization is a) give-get exchange b) transaction c) revenue d) processing cycle 2. Groups of re
Chapter 1 MULTIPLE CHOICE 1. A set of two or more interrelated components that interact to achieve a goal is: a) A system b) An accounting information system c) Data d) Mandatory information 2. This results when a subsystem achieves its goals while contri