NEIEP 600 Final Exam Review Updated Version
Questions With Complete 100% Verified Solutions
Compere the latest available interim financial statements with the statements
being audited
Which of the following procedures would an auditor generally perform regarding
subsequent events?
a. Inspect inventory items that were ordered before the year end but arrived after the
year end.
b. Test internal control activities that were previously reported to management as
inadequate.
c. Review the client's cutoff bank statements for several months after the year end.
d. Compare the latest available interim financial statements with the statements being
audited.
Sales and Bad Debt Expense
In auditing the balance sheet. most revenue and expense accounts are also audited.
Which accounts are most likely to be audited when auditing account receivable?
a. Sales and Cost of Goods Sold.
b. Interest and Bad Debt Expense.
c. Sales and Bad Debt Expense.
d. Interest and Cost of Goods Sold.
Through the date of the audit report
Auditors should perform audit procedures relating to subsequent events
a. Through year-end.
b. Through issuance of the audit report.
,c. Through the date of the audit report.
d. For a reasonable period after year-end.
Projected Misstatement
The auditors used statistical sampling for the audit of inventory and calculated an
estimated total audited value of $1,100,000; the client's book value for inventory is
$1,200,000. This misstatement is properly classified as a:
Factual misstatement.
Judgmental misstatement.
Relevance misstatement.
Projected misstatement.
Obtaining a management representation letter
Which of the following auditing procedures is ordinarily performed last?
a. Reading of the minutes of the directors' meetings.
b. Confirming accounts payable.
c. Obtaining a management representation letter.
d. Testing of the purchasing function.
Assist the auditor when forming overall conclusions about the financial
statements
The primary objective of analytical procedures used near the end of an audit is to
a. Obtain evidence from details tested to corroborate particular assertions.
b. Identify areas that represent specific risks relevant to the audit.
c. Assist the auditor when forming overall conclusions about the financial statements.
d. Satisfy doubts when questions arise about a client's ability to continue in existence.
Compere the latest available interim financial statements with the statements
being audited
, Which of the following procedures would an auditor generally perform regarding
subsequent events?
a. Inspect inventory items that were ordered before the year end but arrived after the
year end.
b. Test internal control activities that were previously reported to management as
inadequate.
c. Review the client's cutoff bank statements for several months after the year end.
d. Compare the latest available interim financial statements with the statements being
audited.
Obtain a lawyer's letter
Which of the following is a procedure normally performed awhile completing the audit of
a public company?
a. Obtain a lawyer's letter.
b. Send out accounts receivable confirmations.
c. Observe the count of year-end inventory.
d. Fill out the internal control questionnaire.
Assess the importance of the omitted procedures to Brown's present ability to
support the opinion
On February 9, Brown, CPA, expressed an unmodified (unqualified) opinion on the
financial statements of Web Company. On October 9, during a peer review of Brown's
practice, the reviewer informed Brown that engagement personnel failed to perform a
search for subsequent events for the Web engagement. Brown should first:
a. Request Web's permission to perform substantive procedures that would provide a
satisfactory basis for the opinion.
b. Inquire of Web whether there are persons currently relying, or likely to rely, on the
financial statements.
c. Take no additional action because subsequent events have no effect on the financial
statements that were reported on.
Questions With Complete 100% Verified Solutions
Compere the latest available interim financial statements with the statements
being audited
Which of the following procedures would an auditor generally perform regarding
subsequent events?
a. Inspect inventory items that were ordered before the year end but arrived after the
year end.
b. Test internal control activities that were previously reported to management as
inadequate.
c. Review the client's cutoff bank statements for several months after the year end.
d. Compare the latest available interim financial statements with the statements being
audited.
Sales and Bad Debt Expense
In auditing the balance sheet. most revenue and expense accounts are also audited.
Which accounts are most likely to be audited when auditing account receivable?
a. Sales and Cost of Goods Sold.
b. Interest and Bad Debt Expense.
c. Sales and Bad Debt Expense.
d. Interest and Cost of Goods Sold.
Through the date of the audit report
Auditors should perform audit procedures relating to subsequent events
a. Through year-end.
b. Through issuance of the audit report.
,c. Through the date of the audit report.
d. For a reasonable period after year-end.
Projected Misstatement
The auditors used statistical sampling for the audit of inventory and calculated an
estimated total audited value of $1,100,000; the client's book value for inventory is
$1,200,000. This misstatement is properly classified as a:
Factual misstatement.
Judgmental misstatement.
Relevance misstatement.
Projected misstatement.
Obtaining a management representation letter
Which of the following auditing procedures is ordinarily performed last?
a. Reading of the minutes of the directors' meetings.
b. Confirming accounts payable.
c. Obtaining a management representation letter.
d. Testing of the purchasing function.
Assist the auditor when forming overall conclusions about the financial
statements
The primary objective of analytical procedures used near the end of an audit is to
a. Obtain evidence from details tested to corroborate particular assertions.
b. Identify areas that represent specific risks relevant to the audit.
c. Assist the auditor when forming overall conclusions about the financial statements.
d. Satisfy doubts when questions arise about a client's ability to continue in existence.
Compere the latest available interim financial statements with the statements
being audited
, Which of the following procedures would an auditor generally perform regarding
subsequent events?
a. Inspect inventory items that were ordered before the year end but arrived after the
year end.
b. Test internal control activities that were previously reported to management as
inadequate.
c. Review the client's cutoff bank statements for several months after the year end.
d. Compare the latest available interim financial statements with the statements being
audited.
Obtain a lawyer's letter
Which of the following is a procedure normally performed awhile completing the audit of
a public company?
a. Obtain a lawyer's letter.
b. Send out accounts receivable confirmations.
c. Observe the count of year-end inventory.
d. Fill out the internal control questionnaire.
Assess the importance of the omitted procedures to Brown's present ability to
support the opinion
On February 9, Brown, CPA, expressed an unmodified (unqualified) opinion on the
financial statements of Web Company. On October 9, during a peer review of Brown's
practice, the reviewer informed Brown that engagement personnel failed to perform a
search for subsequent events for the Web engagement. Brown should first:
a. Request Web's permission to perform substantive procedures that would provide a
satisfactory basis for the opinion.
b. Inquire of Web whether there are persons currently relying, or likely to rely, on the
financial statements.
c. Take no additional action because subsequent events have no effect on the financial
statements that were reported on.
