ACCY 360 ACTUAL EXAM 2026 FULL
QUESTIONS AND SOLUTIONS VIEW AHEAD
◉ Which of the following procedures would an auditor most likely
perform in the planning stage of an audit?
A. make a preliminary judgment about materiality
B. Confirm a sample of the entity's accounts payable with known
creditors
C. Obtain a written representations from management that there are
no unrecorded transactions
Answer: A
◉ In determining whether transactions have been recorded, the
direction of the audit testing should start from:
A. Adjusted trial balance
B. General journal entries
C. Original source documents
Answer: C
◉ You are auditing a store that sells merchandise. Some of the store
merchandise is held on consignment. Which account balance
assertion for inventory should you be most concerned about
verifying?
,Answer: Rights and obligations
◉ Which of the following best describes the primary purpose of
audit procedures?
A. to gather corroborative evidence about management's assertions
B. To detect all errors or fraudulent activities
C. To comply with GAAP
Answer: A
◉ Which of the following is not a typical analytical procedure?
A. study of relationships of the financial information with relevant
nonfinancial information
B. Comparison of the financial information with budgeted amounts
C. Comparison of recorded amounts of major disbursements with
appropriate invoices
Answer: C
◉ Reports on service organizations typically:
A. ensure that the auditee is billed correctly
B. Provide reasonable assurance that their financial statements are
free of material misstatments
C. Assess whether the service organization's controls are suitable
designed to achieve internal control objectives
, Answer: C
◉ A substantive strategy differs forma reliace strategy in that a
substantive strategy includes:
A. Increased emphasis on verbal representations from managment
B. Extra tests of controls
C. Increased implementation of detailed tests of transactions and
balances
Answer: C
◉ A deficiency that implies that there is a reasonable possibility of
misstatement in the financial statements that is significant but not
material is
A. significant deficiency
B. A material weakness
C. An insignificant deficiency
Answer: A
◉ An "integrated audit" as stated in Section 404 of the SOX act
means:
A. the auditor must consider the integrated thoughts and ideas of
everyone on the audit staff
B. Two independent CPA firms must work together on the audit
QUESTIONS AND SOLUTIONS VIEW AHEAD
◉ Which of the following procedures would an auditor most likely
perform in the planning stage of an audit?
A. make a preliminary judgment about materiality
B. Confirm a sample of the entity's accounts payable with known
creditors
C. Obtain a written representations from management that there are
no unrecorded transactions
Answer: A
◉ In determining whether transactions have been recorded, the
direction of the audit testing should start from:
A. Adjusted trial balance
B. General journal entries
C. Original source documents
Answer: C
◉ You are auditing a store that sells merchandise. Some of the store
merchandise is held on consignment. Which account balance
assertion for inventory should you be most concerned about
verifying?
,Answer: Rights and obligations
◉ Which of the following best describes the primary purpose of
audit procedures?
A. to gather corroborative evidence about management's assertions
B. To detect all errors or fraudulent activities
C. To comply with GAAP
Answer: A
◉ Which of the following is not a typical analytical procedure?
A. study of relationships of the financial information with relevant
nonfinancial information
B. Comparison of the financial information with budgeted amounts
C. Comparison of recorded amounts of major disbursements with
appropriate invoices
Answer: C
◉ Reports on service organizations typically:
A. ensure that the auditee is billed correctly
B. Provide reasonable assurance that their financial statements are
free of material misstatments
C. Assess whether the service organization's controls are suitable
designed to achieve internal control objectives
, Answer: C
◉ A substantive strategy differs forma reliace strategy in that a
substantive strategy includes:
A. Increased emphasis on verbal representations from managment
B. Extra tests of controls
C. Increased implementation of detailed tests of transactions and
balances
Answer: C
◉ A deficiency that implies that there is a reasonable possibility of
misstatement in the financial statements that is significant but not
material is
A. significant deficiency
B. A material weakness
C. An insignificant deficiency
Answer: A
◉ An "integrated audit" as stated in Section 404 of the SOX act
means:
A. the auditor must consider the integrated thoughts and ideas of
everyone on the audit staff
B. Two independent CPA firms must work together on the audit
