Question 1

The ________________________________________ is a set of procedures designed to yield audit evidence of liabilities that were not recorded in the reporting period.
Reference: Question also found in study guide
AICPA BB: Critical Thinking
AICPA FN: Risk Analysis
Blooms: Apply

Accepted Answer

The answer of The ________________________________________ is a set of procedures...

Question 2

The inherent risk that accounts payable may be omitted or otherwise understated typically is
A)Low.
B)High.
C)Moderate.
D)Indeterminate.

Accepted Answer

The risk of omitting or understating accounts payable is high as it can result in overstating net income and assets on the balance sheet. Failure to accurately record accounts payable can also result in inaccurate financial statements and mislead stakeholders.

Question 3

An audit plan for accounts payable would not include which of the following procedures?
A)Obtaining a trial balance of recorded accounts payable.
B)Sending confirmation to accounts with zero balances.
C)Reviewing cash receipts for the period after year-end.
D)Obtaining written client representations about related-party payables and pledges of assets as collateral for liabilities.

Accepted Answer

Reviewing cash receipts for the period after year-end is not relevant to auditing accounts payable. The other procedures listed all involve verifying the accuracy and completeness of recorded accounts payable.

Question 4

The _____________________________________ inspects the goods received for _____________________________ and _____________________________ and then puts them in the hands of other responsible persons.
Reference: Question also found in study guide

Accepted Answer

The answer of The _____________________________________ inspects the goods received for...

Question 5

___________________________________ and ___________________________________ can cause "unmatched" invoices and related "unmatched" receiving reports to be unnoticed.
Reference: Question also found in study guide

Accepted Answer

The answer of ___________________________________ and ___________________________________ can cause "unmatched" invoices...

Question 6

Auditors can compare the ________________________________ file to the _________________________________ to determine whether the company has material unrecorded liabilities on the financial statement date.
Reference: Question also found in study guide

Accepted Answer

The answer of Auditors can compare the ________________________________ file to...

Question 7

When considering assertions and obtaining evidence about accounts payable,auditors must put emphasis on the _____________________________ assertion.
Reference: Question also found in study guide
AICPA BB: Critical Thinking
AICPA FN: Risk Analysis
Blooms: Apply

Accepted Answer

The answer of When considering assertions and obtaining evidence about...

Question 8

The typical functions of the personnel and payroll cycle would not include
A)Labor relations.
B)Report of attendance and work performed.
C)Allocation to cost of goods sold.
D)Payroll accounting.

Accepted Answer

The answer of The typical functions of the personnel and...

Question 9

The __________________________________ has transaction initiation authority to add new employees and delete terminated employees.
Reference: Question also found in study guide

Accepted Answer

The answer of The __________________________________ has transaction initiation authority to...

Question 10

Specific balance assertions typical of accounts payable would not include
A)Recorded liabilities are obligations of the entity.
B)Estimated liabilities are properly valued.
C)Accounts payable are not pledged as collateral.
D)Payables are recorded in the proper period.

Accepted Answer

The assertion that accounts payable are not pledged as collateral is not a typical balance assertion for accounts payable, as this assertion pertains to the use of accounts payable rather than their existence or accuracy. The other options are all relevant balance assertions for accounts payable.

Question 11

A list of all purchases might exist only in a ____________________________________ file rather than a _____________________________________.
Reference: Question also found in study guide

Accepted Answer

The answer of A list of all purchases might exist...

Question 12

Assessment of _____________________________ of __________________________________ is important because it governs the nature,timing,and extent of substantive procedures that will be applied in the audit of account balances in the acquisition cycle.
Reference: Question also found in study guide

Accepted Answer

The answer of Assessment of _____________________________ of __________________________________ is important...

Question 13

Vendor invoices should be compared to _______________________________ and ________________________________ to determine that the vendor is charging the approved price and for quantity received.
Reference: Question also found in study guide

Accepted Answer

The answer of Vendor invoices should be compared to _______________________________...

Question 14

Which of the following functional responsibilities would not typically relate to salaried employees?
A)Collecting timekeeping data.
B)Supervision.
C)Personnel or labor relations.
D)Payroll distribution.

Accepted Answer

Collecting timekeeping data is typically not a salaried employee responsibility because they are exempt from overtime pay and do not need to track their hours worked.

Question 15

Which of the following would not typically be a specific relevant assertion about fixed asset accounts?
A)Fixed assets in the accounts exist and are in productive use.
B)Net carrying book values in the accounts are reflected at current market values.
C)Depreciation has been calculated properly using accepted methods and reasonable estimates of useful life and other factors.
D)Fixed assets are properly classified in the balance sheet under appropriate descriptive captions.

Accepted Answer

Net carrying book values in fixed asset accounts are typically not reflected at current market values. Instead, they are recorded at historical cost less accumulated depreciation. This is because fixed assets are not revalued to market value unless there is a permanent impairment in their value. A, C, and D are typical relevant assertions about fixed asset accounts.

Question 16

____________________________________ consist of (1)identification of data population for audit and (2)an expression of the action to be taken to produce relevant audit evidence.
Reference: Question also found in study guide

Accepted Answer

The answer of ____________________________________ consist of (1)identification of data population...

Question 17

The five functional responsibilities of a payroll cycle are ____________________________,____________________________,____________________________,and ________________________________.
Reference: Question also found in study guide

Accepted Answer

The answer of The five functional responsibilities of a payroll...

Question 18

A _____________________________ is a cover sheet containing all supporting documentation for an acquisition.
Reference: Question also found in study guide

Accepted Answer

The answer of A _____________________________ is a cover sheet containing...

Question 19

An internal control questionnaire for payroll processing occurrence assertion would not include which of the following questions?
A)Are names of terminated employees reported in writing to the payroll department?
B)Is the payroll compared to personnel files periodically?
C)Are checks distributed by the employee's immediate supervisor?
D)Are all wage rates determined by contract or approved by a personnel officer?

Accepted Answer

The answer of An internal control questionnaire for payroll processing...

Question 20

When the _________________________________,______________________________ and _________________________ are in hand,the accountants can record the accounts payable.
Reference: Question also found in study guide

Accepted Answer

The answer of When the _________________________________,______________________________ and _________________________ are in...

Quiz 8: Acquisition and Expenditure Cycle

The ________________________________________ is a set of procedures designed to yield audit evidence of liabilities that were not recorded in the reporting period. Reference: Question also found in study guide AICPA BB: Critical Thinking AICPA FN: Risk Analysis Blooms: Apply

The inherent risk that accounts payable may be omitted or otherwise understated typically is

An audit plan for accounts payable would not include which of the following procedures?

The _______________________ inspects the goods received for _ and _______________ and then puts them in the hands of other responsible persons. Reference: Question also found in study guide

_ and _ can cause "unmatched" invoices and related "unmatched" receiving reports to be unnoticed. Reference: Question also found in study guide

Auditors can compare the file to the _ to determine whether the company has material unrecorded liabilities on the financial statement date. Reference: Question also found in study guide

When considering assertions and obtaining evidence about accounts payable,auditors must put emphasis on the _____________________________ assertion. Reference: Question also found in study guide AICPA BB: Critical Thinking AICPA FN: Risk Analysis Blooms: Apply

The typical functions of the personnel and payroll cycle would not include

The __________________________________ has transaction initiation authority to add new employees and delete terminated employees. Reference: Question also found in study guide

Specific balance assertions typical of accounts payable would not include

A list of all purchases might exist only in a file rather than a _. Reference: Question also found in study guide

Assessment of _ of ______ is important because it governs the nature,timing,and extent of substantive procedures that will be applied in the audit of account balances in the acquisition cycle. Reference: Question also found in study guide

Vendor invoices should be compared to _ and __ to determine that the vendor is charging the approved price and for quantity received. Reference: Question also found in study guide

Which of the following functional responsibilities would not typically relate to salaried employees?

Which of the following would not typically be a specific relevant assertion about fixed asset accounts?

____________________________________ consist of (1)identification of data population for audit and (2)an expression of the action to be taken to produce relevant audit evidence. Reference: Question also found in study guide

The five functional responsibilities of a payroll cycle are ,,,and ____. Reference: Question also found in study guide

A _____________________________ is a cover sheet containing all supporting documentation for an acquisition. Reference: Question also found in study guide

An internal control questionnaire for payroll processing occurrence assertion would not include which of the following questions?

When the _______, and _ are in hand,the accountants can record the accounts payable. Reference: Question also found in study guide