Which of the following is NOT considered to be a "substantive" audit procedure?
A) Analytical procedures used to assess the reasonableness of payroll expenses.
B) Tests of transactions for general ledger accounts having a low level of activity
C) Tests of controls to evaluate the operating effectiveness of internal controls
D) Tests of ending balances for general ledger accounts having a high level of activity.
E) All of the above are substantive audit procedures.
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C) Tests of controls to evaluate the operating effectiveness of internal
controls
Deposit in transit of the applicable bank reconciliation
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Q: mark (triangle) under bank column within the "Date disbursed by" tab
represents:
The discovery of information regarding a contingency that existed before the financial
statements were issued
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Q: Which of the following events occurring after the issuance of a set of
financial statements and the accompanying auditor's report would be most
likely to cause the auditor to make further inquires about the financial
statements?
The highest-quality and most reliable audit evidence that segregation of duties is
properly implemented is obtained by
A) Inspection of documents prepared by a third party but which contain the initials of
those applying entity controls.
B) Observation by the auditor of the employees performing control activities.
,C) Inspection of a flowchart of duties performed and available personnel.
D) Inquiries of employees who apply control activities.
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B) Observation by the auditor of the employees performing control
activities.
verifying the composition (math) of the year-end balance
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Test of details: Test of ending balance
When completing the audit, how are you still gathering evidence
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1) Review for contingencies (in general)
2) Inquiry regarding legal matters (specifically)
3) Review for subsequent events
4) Obtain a management representation letter
A bank account containing a stipulated amount of money used for limited purposes
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, D: Imprest Account
Consist of all the people, processes, and activities in place to help ensure proper
stewardship over an entities assets. It ensures those managing an entity property
utilizes their time, talents, and resources in the best interest, and that they faithfully
report the economic condition and performance of the enterprise.
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Corporate Governance
Assist the auditor in assessing the validity of the conclusions reached on the audit
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Q: The primary objective of final analytical procedures is to:
No reply to a positive conformation request is received
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Q: an auditor should perform alternative procedures to substantive the
existence of accounts receivable when:
Is concerned with issues such as equity, fairness, and impartiality
A) Analytical procedures used to assess the reasonableness of payroll expenses.
B) Tests of transactions for general ledger accounts having a low level of activity
C) Tests of controls to evaluate the operating effectiveness of internal controls
D) Tests of ending balances for general ledger accounts having a high level of activity.
E) All of the above are substantive audit procedures.
,Give this one a try later!
C) Tests of controls to evaluate the operating effectiveness of internal
controls
Deposit in transit of the applicable bank reconciliation
Give this one a try later!
Q: mark (triangle) under bank column within the "Date disbursed by" tab
represents:
The discovery of information regarding a contingency that existed before the financial
statements were issued
Give this one a try later!
Q: Which of the following events occurring after the issuance of a set of
financial statements and the accompanying auditor's report would be most
likely to cause the auditor to make further inquires about the financial
statements?
The highest-quality and most reliable audit evidence that segregation of duties is
properly implemented is obtained by
A) Inspection of documents prepared by a third party but which contain the initials of
those applying entity controls.
B) Observation by the auditor of the employees performing control activities.
,C) Inspection of a flowchart of duties performed and available personnel.
D) Inquiries of employees who apply control activities.
Give this one a try later!
B) Observation by the auditor of the employees performing control
activities.
verifying the composition (math) of the year-end balance
Give this one a try later!
Test of details: Test of ending balance
When completing the audit, how are you still gathering evidence
Give this one a try later!
1) Review for contingencies (in general)
2) Inquiry regarding legal matters (specifically)
3) Review for subsequent events
4) Obtain a management representation letter
A bank account containing a stipulated amount of money used for limited purposes
Give this one a try later!
, D: Imprest Account
Consist of all the people, processes, and activities in place to help ensure proper
stewardship over an entities assets. It ensures those managing an entity property
utilizes their time, talents, and resources in the best interest, and that they faithfully
report the economic condition and performance of the enterprise.
Give this one a try later!
Corporate Governance
Assist the auditor in assessing the validity of the conclusions reached on the audit
Give this one a try later!
Q: The primary objective of final analytical procedures is to:
No reply to a positive conformation request is received
Give this one a try later!
Q: an auditor should perform alternative procedures to substantive the
existence of accounts receivable when:
Is concerned with issues such as equity, fairness, and impartiality
