Question

7. An auditor has accounted for a sequeno information on a representative number assertion does this procedure relate to most directly A) Completeness. B) Existence. C) Legality. D) Valuation. a sequence of inventory tags and is now going to trace e number of tags to the inventory summary sheets. Which o. Which of the following is not a procedure that typically is used by the auditors in tica 8. Which of the follow examination of a client's goods held in the custody of a public warehouse? A) Confirmation B) Obtaining reports on internal control at the warehouse. C) Observation. DJ Communicate with the regulatory agency about the legitimacy of the public warehouse 9. Which of the following is an internal control weakness for a company whose inventory of supplies consists of a large number of individual items? A) Supplies of relatively little value are expensed when purchased. B) The cycle basis is used for physical counts. C) The storekeeper is responsible for maintenance of perpetual inventory records D) Perpetual inventory records are maintained only for items of significant value. 10. Which of the following is nor one of the auditors' objectives in auditing depreciation? A) Establishing the reasonableness of the client's replacement policy. B) Establishing that the methods used are appropriate. C) Establishing that the methods are consistently applied. D) Establishing the reasonableness of depreciation computations. 11. To strengthen internal control over the custody of heavy mobile equipment, the client would most likely institute a policy requiring a periodic A) Increase in insurance coverage. B) Inspection of equipment and reconciliation with accounting records. C) Verification of liens, pledges, and collateralizations. D) Accounting for work orders 12. Which of the following tests of controls most likely would help assure an auditor that goods shipped are properly billed? A) Scan the sales journal for sequential and unusual entries. B) Examine shipping documents for matching sales invoices. C) Compare the accounts receivable ledger to daily sales summaries. D) Inspect unused sales invoices for consecutive prenumbering. 13. Which of the following audit procedures is best for identifying unrecorded trade accounts payable? A) Reviewing cash disbursements recorded subsequent to the balance sheet date to determine

auditing

Answer 1

7. Option A, Completeness

8. Option D, communicating with the regulatory agency about the legitimacy of the public warehouse

9. Option C, the storekeeper is responsible for maintenance of perpetual inventory records.

10. Option A,establishing the reasonableness of the client's replacement policy

11. Option B,Inspection of equipment and reconciliation with accounting records

12. Option B,Examine shipping documents for matching sales invoices.

19. Option D, update internal control questionnaire

20. Option A, an engagement to form an opinion on the effectiveness of internal control