UPDATED STUDY GUIDE
⩥ Externally designated for expenditure in the acquisition or
construction of noncurrent assets
Answer: **Yes
No
⩥ The cost of extending the lease for the entire useful life of the
equipment may be more than the actual purchase price.
Answer: A. Advantage
**B. Disadvantage
⩥ De minimis fringe benefits
Answer: Yes
**No
⩥ The amount of cash required to plan and implement an
investment proposal.
Answer: A. Cash Outflow
B. Cash Inflow
,C. Economic Life
NOT - D. Opportunity Cost of Funds
⩥ Opportunities passed by because they were identified as too
risky.
Answer: **A. Cost
B. Benefit
⩥ The value lost from those incidents that could not be
prevented.
Answer: **A. Cost
B. Benefit
⩥ To assert to and report on the effectiveness of the company's
internal controls and procedures for financial reporting on an
annual basis.
Answer: Yes
**No
⩥ Which of the following statements is NOT true about
operational auditing?
,Answer: A. It is a technique to ensure that management
objectives and organizational policies are effectively carried out.
B. Opportunities for improvement are commonly identified as a
result of these reviews
**C. Operational auditing takes considerable special instruction
and training since it is not logical.
D. The auditor focuses on the operational aspects of running an
efficient and profitable business and ensures that assets are
safeguarded.
⩥ Useful in formulating overall financial policies
Answer: A. Short-Term
**B. Long-Term
⩥ State Children's Health Insurance Program (SCHIP) data
Answer: **Yes
No
⩥ To establish and maintain disclosure controls and procedures.
Answer: **Yes
No
, ⩥ When is revenue typically recorded on a financial statement?
Answer: A. When coverage is provided to an enrollee or the
service is provided to a patient or resident
B. When enterprises receive the promise of contributions,
grants, or tax support
NOT - C. Only when required by the AICPA Audit and
Accounting Guide, Audits of Not-For-Profit Organizations
D. Only when required by the ASU No. 2014-09
⩥ Other state and local indigent care programs data
Answer: **Yes
No
⩥ Reporting accurate data concerning the time, location,
frequency, duration, or provider of services.
Answer: Yes
**No
⩥ Which of the following statements is NOT accurate?