LATIHAN SOAL BAB 11

1. Which of the following best describes the process for assessing control risk?
A.
1! "erfor# tests of controls$ and %! e&al'ate the e&idence and assess control
risk(
B.
1! Identif) necessar) controls$ %! perfor# tests of controls$ and *! e&al'ate
the e&idence and assess control risk(
C.
1! Identif) potential #isstate#ents that co'ld occ'r$ %! identif) necessar)
controls$ *! perfor# tests of controls$ and +! e&al'ate the e&idence and
assess control risk(
D.
1! ,onsider the knowledge ac-'ired fro# obtaining the 'nderstanding of
internal control$ %! identif) potential #isstate#ents that co'ld occ'r$ *!
identif) necessar) controls$ +! perfor# tests of controls$ and .! e&al'ate the
e&idence and assess control risk(
2. Which of the following represents the necessar) control and the test of control that
wo'ld control the risk of d'plicate pa)#ent of an acco'nts pa)able &o'cher?
A.
Necessar) control/ The co#p'ter #atches check infor#ation with the
s'pporting &o'cher0 Test of control/ S'b#it test data to see that the co#p'ter
appropriatel) #atches check infor#ation with &o'cher infor#ation(
B.
Necessar) control/ The co#p'ter electronicall) cancels the &o'cher and
s'pporting infor#ation when the check is iss'ed0 Test of control/ S'b#it test
data to see that the co#p'ter re1ects d'plicate pa)#ents(
C.
Necessar) control/ The co#p'ter #atches &o'cher date with the check date0
Test of control/ S'b#it test data to see that the co#p'ter appropriatel)
#atches dates on the &o'cher and on the check(
D.
Necessar) control/ There is separate d'ties for appro&ing &o'cher and signing
checks0 Test of control/ Obser&e segregation of d'ties
3. ,ontrols o&er the co#pleteness assertion generall)
A.
start b) capt'ring infor#ation abo't a transaction when it is initiated and then
follow the transaction forward thro'gh receipt or deli&er and recording(
B.
co#pare infor#ation associated with the recording of transactions with
infor#ation associated with the passage of title$ which is nor#all) capt'red
d'ring the deli&er) or receipt of goods and ser&ices(
C.
co#pare infor#ation associated with the recording of transactions with
infor#ation obtained both with the deli&er) or receipt of goods and ser&ices
and infor#ation associated with the initiation of the transaction(
D.
co#pare infor#ation associated with the recording of transactions with
infor#ation created when the transaction is initiated(
1
4. When obtaining an 'nderstanding of internal controls the a'ditor identifies i#portant
progra##ed application controls o&er the occ'rrence of sales$ howe&er$ the a'ditor
also has serio's concerns abo't the ade-'ac) of the control en&iron#ent d'e to a
weak tone at the top abo't control conscio'sness( Which of the following best
describes how the a'ditor sho'ld respond to this sit'ation when planning tests of
occ'rrence of sales?
A.
The a'ditor co'ld assess control risk as low for an assertion after perfor#ing
co#p'ter assisted a'dit techni-'es on controls rele&ant to that assertion(
B.
The a'ditor co'ld assess control risk as low for an assertion after perfor#ing
co#p'ter assisted a'dit techni-'es on controls rele&ant to that assertion and
assessing the ade-'ac) of segregation of d'ties(
C.
The a'ditor will probabl) assess control risk at the #a2i#'# irrespecti&e of
the -'alit) of the progra##ed application controls(
D.
The a'ditor co'ld assess control risk as low for an assertion if significant
perfor#ance re&iews are placed in operation(
5. After obtaining an 'nderstanding of internal control and assessing control risk the
a'ditors decided not to perfor# additional tests of controls( The a'ditor #ost likel)
concl'ded that the
A.
additional e&idence to s'pport a f'rther red'ction in control risk was not cost
beneficial to obtain(
B.
assessed le&el of inherent risk e2ceeded the assessed le&el of control risk(
C.
internal controls were properl) designed and 1'stifiabl) #a) be relied 'pon(
D.
e&idence obtained thro'gh tests of controls wo'ld not s'pport an increased
le&el control risk(
6. When an a'ditor increases the planned assessed le&el of control risk beca'se certain
control proced'res were deter#ined to be ineffecti&e$ the a'ditor wo'ld #ost likel)
increase the
A.
e2tent of tests of controls(
B.
planned le&el of detection risk(
C.
planned le&el of s'bstanti&e tests(
D.
le&el of inherent risk(
7. Which of the following is not a step in an a'ditor3s decision to asses control risk at
below the #a2i#'#?
A.
4&al'ate the effecti&eness of the internal control proced'res with tests of
%
controls(
B.
Obtain an 'nderstanding of the entit)3s acco'nting s)ste# and control
en&iron#ent(
C.
"erfor# tests of details of transactions to detect #aterial #isstate#ents in the
financial state#ents(
D.
,onsider whether control proced'res can ha&e a per&asi&e effect on financial
state#ent assertions(
8. The 'lti#ate p'rpose of assessing control risk is to contrib'te to the a'ditor3s
e&al'ation of the risk that
A.
specified controls re-'iring segregation of d'ties #a) be circ'#&ented b)
coll'sion(
B.
entit) policies #a) be o&erridden b) senior #anage#ent(
C.
tests of controls #a) fail to identif) proced'res rele&ant to assertions(
D.
#aterial #isstate#ents #a) e2ist in the financial state#ent assertions(
9. A proced're that wo'ld #ost likel) be 'sed b) an a'ditor in perfor#ing tests of
control proced'res that in&ol&e segregation of f'nctions and that lea&e no transaction
trail is
A.
inspection(
B.
obser&ation(
C.
reperfor#ance(
D.
reconciliation(
10. If an a'ditor decides to assess control risk as low based on co#p'ter application
control proced'res$ which of the following wo'ld not be part of the a'ditor3s strateg)
for testing controls?
A.
testing the effecti&eness of co#p'ter general control proced'res
B.
testing the effecti&eness of #anage#ent controls o&er co#p'ter o'tp't
C.
testing the effecti&eness of #an'al follow5'p proced'res
D.
testing the effecti&eness of co#p'ter application control proced'res
11. When control risk is assessed at the #a2i#'# le&el for all financial state#ent
*
assertions$ an a'ditor sho'ld doc'#ent the a'ditor3s
A.
concl'sion that control risk is at the #a2i#'# le&el 6 no/ basis for
concl'ding that control risk is at the #a2i#'# le&el 6 no(
B.
concl'sion that control risk is at the #a2i#'# le&el 6 no/ basis for
concl'ding that control risk is at the #a2i#'# le&el 6 )es(
C.
concl'sion that control risk is at the #a2i#'# le&el 6 )es/ basis for
concl'ding that control risk is at the #a2i#'# le&el 6 no(
D.
concl'sion that control risk is at the #a2i#'# le&el 6 )es/ basis for
concl'ding that control risk is at the #a2i#'# le&el 6 )es(
12. If an a'ditor s'b#its test data on an on5line$ real5ti#e basis to test co#p'ter
application controls$ this is #ost likel) done as part of which of the following
approaches to testing controls?
A.
parallel si#'lation
B.
test data
C.
integrated test facilit)
D.
s)ste#s control a'dit re&iew file
13. If the a'ditor assessed control risk as low for an assertion based on tests perfor#ed
d'ring the first 17 #onths of the )ear$ which of the following wo'ld be L4AST
LI84L9 to be perfor#ed to 'pdate the a'ditor3s concl'sion abo't control risk?
A.
The a'ditor wo'ld consider the significance of the assertion in&ol&ed(
B.
The a'ditor wo'ld consider the res'lts of the tests of controls 'sed to #ake
that e&al'ation(
C.
The a'ditor wo'ld consider the e&idential #atter abo't design or operation
that #a) res'lt fro# s'bstanti&e test perfor#ed in the re#aining period(
D.
The a'ditor wo'ld consider the changes in the ind'str) and the entit)3s
operating en&iron#ent(
14. Which of the following factors wo'ld generall) NOT infl'ence the a'ditor3s decision
abo't sa#ple si:e when #aking decisions abo't the e2tent of tests of controls?
A.
the nat're of the control
B.
the operating effecti&eness of the control en&iron#ent
C.
the fre-'enc) of operation of the control
D.
the i#portance of the control
+
15. A d'al5p'rpose test nor#all) in&ol&es0
A.
perfor#ing anal)tical proced'res and tests of controls si#'ltaneo'sl)(
B.
'sing the sa#e e&idence to draw a concl'sion for tests of controls and for
s'bstanti&e tests(
C.
'sing the sa#e e&idence to draw a concl'sion abo't tests of controls and to
de&elop a preli#inar) a'dit strateg)(
D.
perfor#ing tests of details of transactions and anal)tical proced'res
si#'ltaneo'sl)(
16. An a'ditor #akes the following assess#ents of internal controls for #aterial
transaction classes0
; ,o#pleteness assertion related to credit sales as high
; 42istence and Occ'rrence assertion related to credit sales as low
; ,o#pleteness assertion related to the cash receipts f'nction as low
; 42istence and Occ'rrence assertion related to the cash receipts f'nction as high
; ,o#pleteness assertion related to the sales ret'rns f'nction as low
; 42istence and Occ'rrence assertion related to the sales and ret'rns f'nction as
high
Based on these assess#ents the a'ditor is likel) to conser&ati&el) set control risk for
the e2istence of acco'nts recei&able at0
A.
low(
B.
#oderate(
C.
high(
D.
#a2i#'#(
17. A #aterial weakness in internal controls is one in which0
A.
there is less than a re#ote chance that a #isstate#ent that is #ore than
inconse-'ential will occ'r(
B.
there is #ore than a re#ote chance that a #isstate#ent that is #ore than
inconse-'ential will occ'r(
C.
there is less than a re#ote chance that a #aterial #isstate#ent will occ'r(
D.
there is #ore than a re#ote chance that a #aterial #isstate#ent will occ'r(
18. <or a pri&ate co#pan) which of the following state#ents is tr'e abo't reporting
.
deficiencies in internal controls?
A.
reporting in the a'ditor3s report 6 none/ reporting to the a'dit co##ittee 6
onl) #aterial weaknesses
B.
reporting in the a'ditor3s report 6 none/ reporting to the a'dit co##ittee 6
both significant deficiencies and onl) weaknesses
C.
reporting in the a'ditor3s report 6 onl) #aterial weaknesses/ reporting to the
a'dit co##ittee 6 both significant deficiencies and onl) weaknesses
D.
reporting in the a'ditor3s report 6 onl) #aterial weaknesses/ reporting to the
a'dit co##ittee 6 onl) #aterial weaknesses
1. Which of the following best describes the steps in&ol&ed in assessing the risk of
#aterial #isstate#ents?
A.
1! 4&al'ate the t)pe of potential #isstate#ents that can occ'r$ %! e&al'ate
the #agnit'de of potential #isstate#ents$ *! e&al'ate the likelihood of
potential #isstate#ents(
B.
1! Assess inherent risk$ %! assess control risk$ *! assess detection risk(
C.
1! 4&al'ate the #agnit'de of potential #isstate#ents$ %! e&al'ate the
likelihood of potential #isstate#ents(
D.
1! Assess inherent risk$ %! assess control risk$ *! assess anal)tical
proced'res risk$ +! assess test of details risk(
2. A constr'ction ind'str) client 'ses the percentage of co#pletion #ethod to recogni:e
re&en'e and e2pense on c'rrent pro1ects( Which of the following best describes the
t)pes of potential #isstate#ents that the a'ditor sho'ld be concerned abo't?
A.
It is possible that in&entor) is o&erstated( The a'ditor sho'ld be alert to
proble#s with the e2istence and occ'rrence or &al'ation and allocation of
in&entor)(
B.
Significant re&en'es$ e2pense$ assets and liabilities arise fro# this acco'nting
esti#ate( The a'ditor sho'ld be alert for proble#s with the &al'ation and
allocation assertion(
C.
A weak control en&iron#ent #a) ha&e a per&asi&e i#pact on #an)
assertions(
D.
Weak ind'str) trends #ight i#pact the co#pleteness of re&en'es(
3. Anal)tical proced'res for a retailer show significant increases in both profit #argins
and in&entor) t'rn da)s( Which of the following best describes the t)pes of potential
#isstate#ents that the a'ditor sho'ld be concerned abo't?
=
A.
The a'ditor sho'ld be concerned abo't re&en'e recognition proble#s(
B.
The a'ditor sho'ld be concerned abo't the co#pleteness of in&entor)(
C.
The a'ditor sho'ld be concerned abo't the e2istence of in&entor)(
D.
The a'ditor sho'ld be concerned abo't the co#pleteness of re&en'es(
4. If the a'ditor plans to following a pri#aril) s'bstanti&e approach detection risk is
nor#all) assessed as0
A.
#a2i#'# or #oderate
B.
high or #oderate
C.
#oderate or low
D.
low or &er) low
5. If the a'ditor plans to follow a lower assessed le&el of control risk approach the
a'ditor will 's'all) plan0
A.
less e2tensi&e s'bstanti&e tests at )ear5end(
B.
#ore e2tensi&e s'bstanti&e tests at )ear5end(
C.
less e2tensi&e s'bstanti&e tests at an interi# date(
D.
#ore e2tensi&e s'bstanti&e tests at an interi# date(
6. Which of the following best contrasts tests of controls and s'bstanti&e tests?
A.
Tests of controls are 's'all) perfor#ed at interi# and s'bstanti&e tests are
's'all) perfor#ed at )ear5end(
B.
Both tests of controls and s'bstanti&e tests are pri#aril) designed to pro&ide
e&idence abo't control risk(
C.
Tests of control are designed to draw a concl'sion abo't fre-'enc) of
de&iations fro# proscribed controls and s'bstanti&e tests are designed to draw
concl'sions abo't #onetar) errors(
D.
Both tests of controls and s'bstanti&e tests are alwa)s re-'ired b) >AAS(
7. >enerali:ed a'dit software is nor#all) NOT designed to perfor# which of the
following?
A.
?econcile detail a'dit data with the general ledger(
@
B.
"erfor# tests on an entire pop'lation(
C.
Select and print a'dit sa#ples(
D.
Assess detection risk(
8. Which of the following wo'ld NOT describe the nat're of a s'bstanti&e test?
A.
initial proced'res
B.
tests of details of acco'nting esti#ates
C.
tests of details of disclos'res
D.
risk assess#ent proced'res
9. If an a'ditor sends a confir#ation of a c'sto#ers balance in acco'nts recei&ables$ this
best described as an!0
A.
initial proced're(
B.
anal)tical proced're(
C.
test of details of balances(
D.
test of details of acco'nting esti#ates(
10. Which of the following factors wo'ld tend to increase sa#ple si:es?
A.
The a'dit pop'lation is ho#ogeneo's(
B.
The a'ditor is willing to accept a large a#o'nt of tolerable #isstate#ent(
C.
The a'dit pop'lation is a large a'dit pop'lation(
D.
The a'ditor is willing to accept a high le&el of detection risk(
11. Which of the following wo'ld nor#all) NOT be perfor#ed when a'diting an
acco'nting esti#ate?
A.
Send a confir#ation or obtain e&idence fro# an o'tside third part)(
B.
"erfor# proced'res to re&iew and test #anage#ent3s process in #aking the
esti#ate(
C.
"repare an independent e2pectation of the esti#ate(
A
D.
?e&iew s'bse-'ent transactions and e&ents occ'rring prior to co#pleting the
a'dit that pertain to the esti#ate(
12. As the acceptable le&el of detection risk decreases$ the ass'rance directl) pro&ided
fro#
A.
s'bstanti&e tests sho'ld increase(
B.
s'bstanti&e tests sho'ld decrease(
C.
tests of controls sho'ld increase(
D.
tests of controls sho'ld decrease(
13. As the acceptable le&el of detection risk decreases$ an a'ditor #a) change the
A.
ti#ing of s'bstanti&e tests b) perfor#ing the# at an interi# date rather than
at )ear5end(
B.
nat're of s'bstanti&e tests fro# a less effecti&e to a #ore effecti&e
proced're(
C.
ti#ing of tests of controls b) perfor#ing the# at se&eral dates rather than at
one ti#e(
D.
assessed le&el on inherent risk to a higher a#o'nt(
14. Which of the following conditions does NOT need to e2ist in order for the a'ditor to
consider #o&ing the ti#ing of a s'bstanti&e test to an interi# date?
A.
Internal control d'ring the interi# period and )ear5end is effecti&e(
B.
There are no conditions or circ'#stances that #ight predispose #anage#ent
to #isstate the financial state#ents in the re#aining period(
C.
Inherent risk wo'ld be assessed as low(
D.
The )ear5end balances of the acco'nts e2a#ined at the interi# date are
reasonabl) predictable as to a#o'nt$ relati&e significance$ and co#position(
15. If detection risk is assessed as low the a'ditor will nor#all) consider which of the
following?
A.
"erfor# #ore effecti&e a'dit proced'res$ with larger sa#ples si:es$ at )ear5
end(
B.
"erfor# #ore effecti&e a'dit proced'res$ with s#aller sa#ples si:es$ at )ear5
end(
C.
"erfor# less effecti&e a'dit proced'res$ with s#aller sa#ples si:es$ at an
B
interi# date(
D.
"erfor# #ore effecti&e a'dit proced'res$ with s#aller sa#ples si:es$ at an
interi# date(
16. An a'ditor3s decision either to appl) anal)tical proced'res as s'bstanti&e tests or to
perfor# tests of transaction and acco'nt balances 's'all) is deter#ined b) the
A.
a&ailabilit) of data aggregated at a high le&el(
B.
relati&e effecti&eness of the tests(
C.
ti#ing of tests perfor#ed at the balance sheet date(
D.
a'ditor3s fa#iliarit) with ind'str) trends(
17. A'ditors tr) to identif) predictable relationships when 'sing anal)tical proced'res(
?elationships in&ol&ing transactions for# which of the following acco'nts #ost
likel) wo'ld )ield the highest le&el of e&idence 'sing anal)tical proced'res?
A.
total re&en'es and n'#ber of sales for a retail grocer
B.
total re&en'es$ the n'#ber of roo#s$ occ'panc) rates$ and a&erage roo# rate
for a hotel
C.
total re&en'es and the n'#ber of s'bscribers for a #aga:ine
D.
total interest e2pense and the a&erage principal balance o'tstanding for a
constr'ction co#pan) b'ilding new ho#es
18. After identif)ing related part) transactions$ an a'ditor #ost likel) wo'ld
A.
s'bstantiate that the transactions were cons'##ated on ter#s e-'i&alent to
those pre&ailing in ar#s5length transactions(
B.
disc'ss the i#plications of the transactions with third parties$ s'ch as the
entit)3s attorne) and bankers(
C.
deter#ine whether the transactions were appro&ed b) the board of directors
or other appropriate officials(
D.
ascertain whether the transactions wo'ld ha&e occ'rred if the parties had not
been related(
19. The p'rpose of an a'dit progra# for s'bstanti&e tests is to0
A.
describe the nat're of proced'res to be perfor#ed 5 )es/ describe the ti#ing
of s'bstanti&e 6 )es/ ens're that a'dit e&idence is obtained for all a'dit
ob1ecti&es 6 )es(
17
B.
describe the nat're of proced'res to be perfor#ed 5 )es/ describe the ti#ing
of s'bstanti&e 6 )es/ ens're that a'dit e&idence is obtained for all a'dit
ob1ecti&es 6 not necessaril)(
C.
describe the nat're of proced'res to be perfor#ed 5 )es/ describe the ti#ing
of s'bstanti&e 6 not necessaril)/ ens're that a'dit e&idence is obtained for all
a'dit ob1ecti&es 6 )es(
D.
describe the nat're of proced'res to be perfor#ed 5 not necessaril)/ describe
the ti#ing of s'bstanti&e 6 not necessaril)/ ens're that a'dit e&idence is
obtained for all a'dit ob1ecti&es 6 )es(
11
Latihan ,hapter 1*
1. In the a'dit of <ine Host ,orporation$ the S4, fo'nd that the a'dit tea#$ 'nder the
s'per&ision of Cohn Bacsik$
A.
did not pro1ect the res'lts of the sa#ple on the entire pop'lation(
B.
'sed a sa#ple si:e that was too s#all(
C.
did not 'se statistical sa#pling for s'bstanti&e tests(
D.
did not 'se statistical sa#pling for tests of controls(
2. An ad&antage to 'sing statistical o&er nonstatistical sa#pling #ethods in tests of
controls is that the statistical #ethods
A.
afford greater ass'rance than a nonstatistical sa#ple of e-'al si:e(
B.
pro&ide an ob1ecti&e basis for -'antitati&el) e&al'ating sa#ple risks(
C.
can #ore easil) con&ert the sa#ple into a d'al p'rpose test 'sef'l for
s'bstanti&e testing(
D.
eli#inate the need to 'se 1'dg#ent in deter#ining appropriate sa#ple si:es(
3. The risk of incorrect acceptance and the likelihood of assessing control risk too low
relate to the
A.
effecti&eness of the a'dit(
B.
efficienc) of the a'dit(
C.
preli#inar) esti#ates of #aterialit) le&els(
D.
allowable risk of tolerable error(
4. Which of the following is NOT related to nonsa#pling risk?
A.
h'#an #istakes$ s'ch as failing to recogni:e errors in doc'#ents
B.
appl)ing a'diting proced'res inappropriate to the a'dit ob1ecti&e
C.
'sing nonstatistical sa#pling for proced'res s'ch as sending confir#ations
D.
#isinterpreting the res'lts of a sa#ple
5. The p'rpose of an a'dit sa#ple for tests of controls is to0
A.
deter#ine the esti#ated risk of assessing control risk too low(
B.
deter#ine the esti#ated risk of assessing control risk too high(
C.
deter#ine the esti#ated rate of de&iations fro# prescribed control proced'res
in a pop'lation(
D.
deter#ine the esti#ated rate of de&iation fro# prescribed control proced'res
1%
in a sa#ple(
6. To deter#ine the sa#ple si:e for a test of controls$ an a'ditor sho'ld consider nat're
of the control$ the fre-'enc) of operation of the control$ the i#portance of the control$
the tolerable de&iation rate$ the allowable risk of assessing control risk too low$ the
pop'lation si:e and the
A.
e2pected de&iation rate(
B.
'pper precision li#it(
C.
risk of incorrect acceptance(
D.
risk of incorrect re1ection(
7. If an a'ditor plans to assess control risk as low$ which of the following best describes
a reasonable range for the a'ditor3s tolerable de&iation rate?
A.
1D 5 .D
B.
%D 5 @D
C.
=D 5 1%D
D.
11D 5 %7D
8. Which of the following factors is associated with s#aller sa#ple si:es for tests of
controls?
A.
The control is a #an'al control(
B.
The control operates fre-'entl) e(g($ on e&er) transaction!
C.
The a'ditor deter#ines that he or she can accept a s#all a#o'nt of sa#pling
risk 6 the risk of assessing control risk too low(
D.
The a'ditor deter#ines that he or she can accept a larger tolerable de&iation
rate(
9. Which of the following state#ents is correct concerning a'dit sa#pling for tests of
controls?
A.
The pop'lation si:e has little or no effect on deter#ining sa#ple si:e e2cept
for s#all pop'lations pop'lation si:es less than .$777!(
B.
The e2pected pop'lation de&iation rate has little or no effect on deter#ining
sa#ple si:e e2cept for s#all pop'lations pop'lation si:es less than .$777!(
C.
<or larger pop'lation si:es$ as the pop'lation si:e do'bles the sa#ple si:e
also sho'ld do'ble(
D.
<or a gi&en tolerable rate$ a larger sa#ple si:e sho'ld be selected as the
e2pected pop'lation de&iation rate decreases(
10. In planning a statistical sa#ple for a test of controls$ an a'ditor increased the
e2pected pop'lation de&iation rate fro# the prior )ear3s rate beca'se of the res'lts of
1*
the prior )ear3s tests of controls and the o&erall control en&iron#ent( If other factors
re#ain constant$ co#pared to last )ear this will ca'se an increase in
A.
tolerable rate(
B.
allowance for sa#pling risk(
C.
risk of assessing control risk too low(
D.
sa#ple si:e(
11. An a'ditor plans to e2a#ine a sa#ple of %7 checks for co'ntersignat'res as
prescribed b) the client3s internal control proced'res( One of the checks in the chosen
sa#ple of %7 cannot be fo'nd( The a'ditor sho'ld consider the reasons for this
li#itation and
A.
e&al'ate the res'lts as if the sa#ple si:e had been 1B(
B.
treat the #issing check as a de&iation for the p'rpose of e&al'ating the
sa#ple(
C.
treat the #issing check in the sa#e #anner as the #a1orit) of the other 1B
checks$ that is$ co'ntersigned or not(
D.
choose another check to replace the #issing check in the sa#ple(
12. In the a'dit of the financial state#ents of Eelta ,o#pan)$ the a'ditor deter#ines that
in perfor#ing a test of controls$ the de&iation rate in the sa#ple does not s'pport the
planned control risk when$ in fact$ the tr'e de&iation rate in the pop'lation does
s'pport the planned control risk( This sit'ation ill'strates the risk of
A.
assessing control risk too high(
B.
assessing control risk too low(
C.
incorrect re1ection(
D.
incorrect acceptance(
13. An a'ditor #a) 'se either of two statistical sa#pling approaches in s'bstanti&e
testing$ probabilit)5proportional5to5si:e ""S! sa#pling or classical &ariables
sa#pling( ""S sa#pling is pri#aril) applicable in testing for
A.
the n'#ber of errors in )ear5end sales c'toff(
B.
an o&erstate#ent of acco'nts recei&able(
C.
an 'nderstate#ent of acco'nts pa)able(
D.
proper segregation of d'ties in acco'nts recei&able collections(
14. In a probabilit)5proportional5to5si:e sa#ple with a sa#pling inter&al of F17$777$ an
a'ditor disco&ered that a selected acco'nt recei&able with a recorded a#o'nt of
F.$777 had an a'dit a#o'nt of F%$777( The pro1ected #isstate#ent of this sa#ple
was
1+
A.
F*$777(
B.
F+$777(
C.
F=$777(
D.
FA$777(
15. Which of the following #ost likel) wo'ld be an ad&antage in 'sing classical
&ariables sa#pling rather than probabilit)5proportional5to5si:e ""S! sa#pling?
A.
An esti#ate of the standard de&iation of the pop'lation3s recorded a#o'nts
is not re-'ired(
B.
The a'ditor rarel) needs the assistance of a co#p'ter progra# to design an
efficient sa#ple(
C.
Incl'sion of :ero and negati&e balances generall) does not re-'ire special
design considerations(
D.
An) a#o'nt that is indi&id'all) significant is a'to#aticall) identified and
selected(
16. While perfor#ing a s'bstanti&e test of details d'ring an a'dit$ the a'ditor deter#ined
that the sa#ple res'lts s'pported the concl'sion that the recorded acco'nt balance
was #ateriall) #isstated( It was$ in fact$ not #ateriall) #isstated( This sit'ation
ill'strates the risk of
A.
incorrect re1ection(
B.
incorrect acceptance(
C.
assessing control risk too low(
D.
assessing control risk too high(
17. An ad&antage of 'sing statistical sa#pling techni-'es is that s'ch techni-'es
A.
#athe#aticall) #eas're and control sa#pling risk(
B.
eli#inate the need for 1'dg#ental decisions(
C.
define the &al'es of tolerable error and risk of incorrect acceptance re-'ired
to pro&ide a'dit satisfaction(
D.
ha&e been established in the co'rts to be s'perior to 1'dg#ent sa#pling(
18. When planning a statistical ""S sa#ple$ which of the following factors wo'ld
nor#all) increase sa#ple si:e co#pared to the sa#e pop'lation for the pre&io's
)ear?
A.
The pop'lation si:e in ter#s of book &al'e has decreased(
B.
The a'ditor decides to accept a larger a#o'nt of tolerable #isstate#ent(
C.
The a'ditor decides to accept a s#aller a#o'nt of risk of incorrect
acceptance(
1.
D.
The a'ditor esti#ates that the anticipated #isstate#ent in the pop'lation has
decreased(
19. The a'ditor3s decision abo't the risk of incorrect acceptance affects which of the
following factors in a statistical ""S sa#ple?
A.
tolerable #isstate#ent
B.
reliabilit) factor
C.
book &al'e of the pop'lation
D.
anticipated #isstate#ent
20. An a'ditor 'ses nonstatistical ratio esti#ation to e&al'ate the res'lts of a sa#ple(
The pop'lation book &al'e was F%$777$777 and contained *.7 ite#s( The a'ditor
selected 177 ite#s with a book &al'e of F.77$777( The a'dited &al'e of the sa#ple
was F+A7$777( The esti#ated a'dited &al'e of the pop'lation is0
A.
F1$BA7$777(
B.
F1$B*7$777(
C.
F1$B%7$777(
D.
F1$B77$777(
1=
Latihan ,hapter 1+
1. An a'ditor wants to deter#ine that all sales ad1'st#ents are recorded( This relates to
which of the following a'dit ob1ecti&es?
A.
the transaction class a'dit ob1ecti&e for occ'rrence
B.
the transaction class a'dit ob1ecti&e for acc'rac)
C.
the acco'nt balance a'dit ob1ecti&e for &al'ation
D.
the transaction class a'dit ob1ecti&e for co#pleteness
2. If the a'ditor is concerned abo't the risk of fra'd in the re&en'e c)cle$ which of the
following best describes a'ditor concerns abo't eh potential for fra'd related to credit
sales?
A.
#anage#ent fra'd 6 high risk/ e#plo)ee fra'd 6 high risk
B.
#anage#ent fra'd 6 high risk/ e#plo)ee fra'd 6 low risk
C.
#anage#ent fra'd 6 low risk/ e#plo)ee fra'd 6 high risk
D.
#anage#ent fra'd 6 low risk/ e#plo)ee fra'd 6 low risk
3. The a'ditor is st'd)ing a ratio of acco'nts recei&able growth rate to the growth rate of
sales( Which of the following indicates a potential risk of collection proble#s in
acco'nts recei&able?
A.
Sales grew b) 17D and recei&ables grew b) 11D fro# )ear one to )ear two(
B.
Sales declines b) %D and recei&ables declined b) @D fro# )ear one to )ear
two(
C.
Sales grew b) 17D and recei&ables declined b) %D fro# )ear one to )ear
two(
D.
Sales grew b) .D and recei&ables grew b) 1@D fro# )ear one to )ear two(
4. Which of the following controls #ost likel) wo'ld be effecti&e in offsetting the
tendenc) of sales personnel to #a2i#i:e sales &ol'#e at the e2pense of high bad debt
write5offs?
A.
4#plo)ees responsible for a'thori:ing sales and bad5debt write offs are
denied access to cash(
B.
4#plo)ees who re&iew e2ception reports based on the co#p'ter #atching of
shipping infor#ation and data on sales in&oices do not ha&e the a'thorit) to
write5off bad debts(
C.
4#plo)ees who appro&e credit li#its incl'ded in a #aster c'sto#er file are
separated fro# the sales f'nction(
D.
The acco'nts recei&able #aster file acco'nts recei&able s'bsidiar) ledger! is
reconciled with the general ledger control acco'nt b) an e#plo)ee
independent of the a'thori:ation of credit(
1@
5. Which of the following controls #ost likel) wo'ld help ens're that all credit sales
transactions of an entit) are recorded?
A.
The co#p'ter co#pares sales orders with a c'sto#er3s credit li#it and
c'rrent acco'nt balances(
B.
The acco'nts recei&able #aster file acco'nts recei&able s'bsidiar) ledger! is
reconciled with the general ledger control acco'nt(
C.
The acco'nting depart#ent s'per&isor controls the #ailing of #onthl)
state#ents to c'sto#er and in&estigates an) difference reported b)
c'sto#ers(
D.
The co#p'ter prints a report of all ship#ents that ha&e not been #atched
with a sales in&oice(
6. Which of the following internal control proced'res #ost likel) wo'ld ass're that no
fictitio's billings ha&e been posted to the acco'nts recei&able ledger?
A.
The co#p'ter co#pares the s'# of dail) sales with the total of posting
debits! to the acco'nts recei&able #aster file(
B.
The co#p'ter co#pares each sales in&oice with s'pporting shipping
infor#ation(
C.
The acco'nts recei&able #aster file acco'nts recei&able s'bsidiar) ledger! is
reconciled with the general ledger control acco'nt(
D.
4ach ship#ent on credit is s'pported b) pren'#bered sales in&oice(
7. An a'ditor #ost likel) wo'ld re&iew an entit)3s periodic acco'nting for the n'#erical
se-'ence of shipping doc'#ents and in&oices to s'pport #anage#ent3s financial
state#ent assertion of
A.
e2istence or occ'rrence(
B.
rights and obligations(
C.
&al'ation or allocation(
D.
co#pleteness(
8. So'nd internal control proced'res dictate that defecti&e #erchandise ret'rned b)
c'sto#ers sho'ld be presented initiall) to the
A.
acco'nts recei&able s'per&isor(
B.
recei&ing clerk(
C.
sales #anage#ent(
D.
sales clerk(
9. An a'ditor wo'ld consider a cashier3s 1ob description to contain co#patible d'ties if
the cashier recei&es re#ittances fro# the #ailroo# and also prepares the
A.
prelist of indi&id'al checks(
1A
B.
#onthl) bank reconciliation(
C.
dail) deposit slip(
D.
re#ittance ad&ices(
10. The -'estions below appear on an Internal ,ontrol G'estionnaire( Which
-'estion$ if answered NO$ wo'ld ha&e disclosed that the cashier di&erted cash
recei&ed o&er the co'nter fro# a c'sto#er to his or her own 'se and wrote off
the recei&able as a bad debt?
A.
Are aging sched'les of acco'nts recei&able prepared periodicall) and
re&iewed b) a responsible official?
B.
Are 1o'rnal entries appro&ed b) a responsible official?
C.
Are receipts gi&en directl) to the cashier b) the person who opens the
#ail?
D.
Are re#ittance ad&ices$ letter$ or en&elopes that acco#pan) receipts
separated and gi&en directl) to the acco'nting depart#ent?
11. In 'pdating a co#p'teri:ed acco'nts recei&able file$ which one of the following
wo'ld be 'sed as a batch control to &erif) the acc'rac) of posting cash
re#ittances?
A.
the s'# of net sales(
B.
the s'# of cash deposits less disco'nts taken b) c'sto#ers
C.
the s'# of cash deposits pl's disco'nts taken b) c'sto#ers
D.
the s'# of net sales pl's disco'nts taken b) c'sto#ers
12. An entit) with a large &ol'#e of c'sto#er re#ittances b) #ail co'ld #ost likel)
red'ce the risk of e#plo)ee #isappropriation of cash b) 'sing
A.
e#plo)ee fidelit) bonds(
B.
independentl) prepared #ailroo# prelists(
C.
dail) check s'##aries(
D.
a bank lockbo2 s)ste#(
13. I##ediatel) 'pon receipt of cash$ a responsible e#plo)ee sho'ld
A.
prepare a prelisting of cash recei&ed or a re#ittance listing(
B.
record the a#o'nt in the cash receipts 1o'rnal(
C.
'pdate the s'bsidiar) acco'nts recei&able records(
D.
prepare a deposit slip in triplicate(
14. An a'ditor3s p'rpose in re&iewing credit ratings of c'sto#ers with delin-'ent
1B
acco'nts recei&able is #ost likel) to obtain e&idence concerning #anage#ent3s
assertions abo't
A.
presentation and disclos're(
B.
e2istence or occ'rrence(
C.
rights and obligations(
D.
&al'ation or allocation(
15. The negati&e re-'est for# of acco'nts recei&able confir#ation is 'sef'l
partic'larl) when the
A.
assess le&el of control risk for acco'nts recei&able is high$ the n'#ber of
s#all balances is #an)$ and the consideration b) the recipient is likel)
B.
assess le&el of control risk for acco'nts recei&able is high$ the n'#ber of
s#all balances is few$ and the consideration b) the recipient is likel)
C.
assess le&el of control risk for acco'nts recei&able is low$ the n'#ber of
s#all balances is #an)$ and the consideration b) the recipient is likel)
D.
assess le&el of control risk for acco'nts recei&able is low$ the n'#ber of
s#all balances is #an)$ and the consideration b) the recipient is 'nlikel)
16. Which of the following #ost likel) wo'ld be detected b) an a'ditor3s re&iew of a
client3s sales c'toff?
A.
'nrecorded sales for the )ear
B.
lapping of )ear5end acco'nts recei&able
C.
e2cessi&e sales disco'nts
D.
'na'thori:ed goods ret'rned for credit
17. Which of the following #ost likel) wo'ld gi&e the #ost ass'rance concerning the
&al'ation assertion of acco'nts recei&able?
A.
Tracing a#o'nts in the s'bsidiar) ledger to details on shipping doc'#ents(
B.
,o#paring recei&able t'rno&er ratios to ind'str) statistics for
reasonableness(
C.
In-'iring abo't recei&ables pledged 'nder loan agree#ents(
D.
Assessing the allowance for 'ncollectable acco'nts for reasonableness(
18. ,'toff tests designed to detect credit sales #ade before the end of the )ear that ha&e
been recorded in the s'bse-'ent )ear pro&ide ass'rance abo't #anage#ent3s
assertion of
A.
presentation(
B.
co#pleteness(
C.
rights(
%7
D.
e2istence(
19. When sending positi&e confir#ations$ which of the following wo'ld NOT be an
appropriate wa) to address non5response b) a c'sto#er?
A.
Search for e&idence of s'bse-'ent cash receipt fro# the c'sto#er(
B.
Hatch open in&oices to 'nderl)ing bills of lading and c'sto#er3s orders(
C.
Send negati&e confir#ations in the place of positi&e confir#ations
D.
Ass'#e that the non5response is 177D in error and pro1ect the #isstate#ent
on the pop'lation(
%1
LATIHAN ,HA"T4? 1.(
1. Which of the following ind'stries wo'ld ha&e the greatest concerns abo't p'rchases
c'toff at #onth end$ 'nrecorded liabilities$ and acco'nting for ad&ertising allowances
pro&ided b) &endors?
A.
#an'fact'rer of constr'ction e-'ip#ent(
B.
retail grocer
C.
a hotel
D.
a local school district
2. If the a'ditor is concerned abo't the risk of fra'd in the e2pendit're c)cle$ which of
the following best describes a'ditor concerns abo't the potential for fra'd in the
e2pendit're c)cle?
A.
#anage#ent fra'd 6 high risk/ e#plo)ee fra'd 6 high risk
B.
#anage#ent fra'd 6 high risk/ e#plo)ee fra'd 6 low risk
C.
#anage#ent fra'd 6 low risk/ e#plo)ee fra'd 6 high risk
D.
#anage#ent fra'd 6 low risk/ e#plo)ee fra'd 6 low risk
3. The a'ditor is st'd)ing a ratio of acco'nts pa)able t'rn da)s( Which of the following
indicates a potential risk of 'nrecorded liabilities?
A.
Acco'nts pa)able t'rn da)s increased fro# %A da)s to +. da)s fro# )ear one
to )ear two(
B.
Acco'nts pa)able t'rn da)s increased fro# %A da)s to *7 da)s fro# )ear one
to )ear two(
C.
Acco'nts pa)able t'rn da)s decreased fro# %A da)s to 1. da)s fro# )ear one
to )ear two(
D.
Acco'nts pa)able t'rn da)s decreased fro# *7 da)s to %. da)s fro# )ear one
to )ear two(
4. The internal doc'#ent co##onl) 'sed to a'thori:e the recording and pa)#ent of a
credit p'rchase in the p'rchases 1o'rnal is a0
A.
p'rchase re-'isition(
B.
p'rchase order(
C.
&endor3s in&oice(
D.
&o'cher(
5. When goods are recei&ed$ the co#p'ter wo'ld co#pare recei&ing infor#ation with
infor#ation fro# which of the following doc'#ents and generate an e2ception report
of an) discrepancies?
%%
A.
p'rchase order and p'rchase re-'isition infor#ation
B.
&endor3s in&oice infor#ation
C.
&endor3s shipping doc'#ent and p'rchase order infor#ation
D.
&endor3s shipping doc'#ent and &endor3s in&oice infor#ation
6. Eescribe the progra##ed control proced're that pro&ides ass'rance that all the
#erchandise for which the client was billed was recei&ed( Ass'#e that the co#p'ter
prepares an e2ception report and that follow5'p proced'res are effecti&e(
"rogra##ed edit checks co#pare0
A.
-'antities and prices on the &o'cher with -'antities and prices on the
p'rchase order(
B.
-'antities on the &o'cher with -'antities entered in recei&ing(
C.
-'antities and prices on the &o'cher with -'antities and prices on the
&endor3s in&oice(
D.
-'antities ti#es price on the &o'cher with the a#o'nt of cash disb'rse#ents(
7. Internal control is strengthened when the -'antit) of #erchandise ordered is o#itted
fro# the p'rchasing infor#ation that can be accessed thro'gh the co#p'ter b) the
A.
depart#ent that initiated the re-'isition(
B.
recei&ing depart#ent(
C.
p'rchasing agent(
D.
acco'nts pa)able depart#ent(
8. Which of the following progra##ed control proced're wo'ld be #ost effecti&e in
ass'ring that recorded p'rchases are acc'ratel) recorded for transactions that act'all)
occ'rred?
A.
The co#p'ter co#pares the -'antit) ordered fro# p'rchase order
infor#ation with the -'antit) recei&ed fro# the recei&ing depart#ent(
B.
Iendor in&oice infor#ation is co#pared with p'rchase order infor#ation(
C.
?ecei&ing reports re-'ire the signat're of the indi&id'al who a'thori:ed the
p'rchase(
D.
The co#p'ter #atches &o'cher infor#ation with infor#ation s'pporting
p'rchase orders$ recei&ing reports$ and &endor3s in&oices(
9. Which of the following progra##ed control proced'res wo'ld be #ost effecti&e in
identif)ing 'nrecorded liabilities?
A.
An e2ception report identifies all p'rchase orders that ha&e not been
recei&ed(
B.
An e2ception report identifies all &endors3 in&oices that do not ha&e a
&o'cher(
%*
C.
An e2ception report identifies all recei&ings that do not ha&e a &o'cher(
D.
An e2ception report identifies all recei&ings that do not ha&e a &endor3s
in&oice(
10. An acco'nts pa)able ter#inal operator at a s'bsidiar) co#pan) fabricated false
in&oices fro# a fictitio's &endor$ and entered the# in the parent co#pan)3s acco'nts
pa)able J cash disb'rse#ent s)ste#( Ten checks totaling F1..$777 were iss'ed to the
&endor( What internal control ob1ecti&e was not achie&ed to allow the fra'd'lent
#isstate#ent disc'ssed abo&e?
A.
co#pleteness
B.
c'toff
C.
occ'rrence
D.
classification
E.
acc'rac)
11. Which of the following control proced'res is not 's'all) perfor#ed in the &o'chers
pa)able depart#ent?
A.
deter#ining the #athe#atical acc'rac) of the &endor3s in&oice
B.
ha&ing an a'thori:ed person appro&e the &o'cher
C.
controlling the #ailing of the check and re#ittance ad&ice
D.
#atching the recei&ing report with the p'rchase order
12. Which of the following progra##ed control proced'res wo'ld be #ost effecti&e in
pre&enting d'plicate pa)#ents?
A.
No checks can be #ade pa)able to KcashL or Kbearer(L
B.
"ren'#bered checks are 'sed and the co#p'ter prints an e2ception report of
an) breaks in se-'ence(
C.
After cash disb'rse#ent infor#ation is co#pared with 'ncanceled &o'cher
infor#ation the &o'cher is electronicall) canceled(
D.
?'n5to5r'n totals co#pare the beginning balance of the acco'nts pa)able
file$ less cash disb'rse#ents$ with the ending acco'nts pa)able file(
13. Which of the following a'diting proced'res is best for identif)ing 'nrecorded trade
acco'nts pa)able?
A.
e2a#ining 'n's'al relationships between #onthl) acco'nts pa)able
balances and recorded cash pa)#ents
B.
reconciling &endors3 state#ents to the file of recei&ing reports to identif)
ite#s recei&ed 1'st prior to the balance sheet date
C.
in&estigating pa)ables recorded 1'st prior to and 1'st s'bse-'ent to the
balance sheet date to deter#ine whether the) are s'pported b) recei&ing
%+
reports
D.
re&iewing cash disb'rse#ents recorded s'bse-'ent to the balance sheet date
to deter#ine whether the related pa)ables appl) to the prior period
14. Which of the following best describes the a'ditor3s responsibilit) to confir#ing
acco'nts pa)able?
A.
,onfir#ation of acco'nts pa)able is re-'ired b) generall) accepted a'diting
standards(
B.
,onfir#ation of acco'nts pa)able is a #atter of professional 1'dg#ent and
wo'ld nor#all) be perfor#ed when detection risk is low(
C.
,onfir#ation of acco'nts pa)able is a #atter of professional 1'dg#ent and
wo'ld nor#all) be perfor#ed when detection risk is high(
D.
,onfir#ation of acco'nts pa)able is a #atter of professional 1'dg#ent and
wo'ld nor#all) be perfor#ed when control risk is low(
15. An a'ditor decided to confir# acco'nts pa)able to acco#plish a low le&el of
detection risk for the co#pleteness assertion( Which of the following is the #ost
reasonable sa#pling plan?
A.
,onfir# acco'nts pa)able with an e#phasis on all &endors incl'ding :ero
and s#all balances(
B.
,onfir# acco'nts pa)able with an e#phasis on the largest acco'nt pa)ables(
C.
,onfir# acco'nts pa)able 'sing probabilit)5proportionate5to5si:e sa#pling(
D.
,onfir# acco'nts pa)able with an e#phasis on new &endors$ irrespecti&e of
the si:e of the acco'nt balance(
16. Which of the following proced'res is least likel) to be perfor#ed before the balance
sheet date?
A.
testing of internal control o&er cash
B.
confir#ation of recei&ables
C.
search for 'nrecorded liabilities
D.
obser&ation of in&entor)
%.
LATIHAN ,hapter 1=
1. <or which of the following co#panies wo'ld the a'ditor ha&e the L4AST concern
abo't the e2istence of in&entor)?
A.
#an'fact'rer of constr'ction e-'ip#ent
B.
a retail grocer
C.
a co#p'ter #an'fact'rer
D.
a hotel
2. Which of the following wo'ld NOT be a signal that an a'dit client #ight ha&e a
possible proble# with phanto# in&entor) the e2istence assertion!?
A.
in&entor) increasing faster than sales
B.
decreasing in&entor) t'rno&er
C.
cost of goods sold on the books not agreeing with ta2 ret'rns
D.
shipping cost increasing as a percentage of in&entor)
3. Which of the following is NOT an i#portant doc'#ent that s'pports the recording of
in&entor) in the prod'ction process?
A.
dail) prod'ction reports
B.
#aterial #o&e tickets
C.
ti#e tickets
D.
#aterial iss'e slips
4. Which of the following is an i#portant control o&er the &al'ation of in&entor)?
A.
The co#p'ter acco'nts for pren'#bered #aterials iss'es slips and reconciles
slips with recording in dail) prod'ction reports(
B.
The co#p'ter acco'nts for ho'rs worked and ho'rs charged to dail)
prod'ction reports(
C.
Signed in&entor) #o&e tickets are 'sed to control #o&e#ent of goods
thro'gh prod'ction depart#ent$ with tickets reconciled to dail) prod'ction
reports and co#pleted prod'ction reports(
D.
"rod'ction planning and control appro&es all prod'ction orders(
5. Which one of the following controls will be #ost likel) to disco&er that prod'ction
costs are not recorded?
A.
The co#p'ter generates a report of all #aterial iss'e slips$ ti#e tickets$ and
in&entor) #o&e tickets that are not incl'ded in the dail) prod'ction reports(
B.
The co#pan) has designed independent checks on the agree#ent of entries
for the allocation of #an'fact'ring costs to work in process with data on
%=
#aterials and labor 'sage in dail) prod'ction acti&it) reports(
C.
The co#pan) has designed independent checks on the agree#ent of entries
for the transfer of work in process to finished goods with data in co#pleted
prod'ction reports(
D.
Hanage#ent appro&es all o&erhead rates and standard costs
6. A client #aintains perpet'al in&entor) records in both -'antities and dollars( If the
assessed le&el of control risk is low$ an a'ditor wo'ld probabl)
A.
insist that the client perfor# ph)sical co'nts of in&entor) ite#s se&eral ti#es
d'ring the )ear(
B.
appl) gross profit tests to ascertain the reasonableness of the ph)sical co'nts(
C.
increase the e2tent of tests of controls of the in&entor) c)cle(
D.
re-'est the client to sched'le the ph)sical in&entor) co'nt at the end of the
)ear(
7. The pri#ar) ob1ecti&e of a ,"A3s obser&ation of a client3s ph)sical in&entor) co'nt is
to
A.
disco&er whether a client has co'nted a partic'lar in&entor) ite# or gro'p of
ite#s(
B.
obtain direct knowledge that the in&entor) e2ists and has been properl)
co'nted(
C.
pro&ide an appraisal of the -'alit) of the #erchandise on hand on the da) of
the ph)sical co'nt(
D.
allow the a'ditor to s'per&ise the cond'ct of the co'nt to obtain ass'rance
that in&entor) -'antities are reasonabl) acc'rate(
8. Which one of the following proced'res wo'ld NOT be appropriate for an a'ditor in
discharging his or her responsibilities concerning the client3s ph)sical in&entories?
A.
confir#ation of goods in the hands of p'blic wareho'ses
B.
s'per&ising the taking of the ann'al ph)sical in&entor)
C.
carr)ing o't ph)sical in&entor) proced'res at an interi# date
D.
obtaining written representation fro# the client as to the e2istence$ -'alit)$
and dollar a#o'nt of the in&entor)
9. Ass'#e that the a'ditor has obser&ed the ph)sical in&entor) and concl'ded that all
in&entor) -'antities are &alid( Which of the following proced're represents the best
test of the &al'ation of in&entor) at <I<O?
A.
The a'ditor rando#l) selects &endor3s in&oices for tracing prices fro#
&endor3s in&oices at the beginning of the )ear to prices on the e2tended
in&entor) listing(
B.
The a'ditor foc'ses pri#aril) on prices that ha&e changed b) #ore than 17D
since the last )ear end$ and on the pricing of all new prod'cts in in&entor)$
and &o'ches prices on the e2tended in&entor) listing back to &endor3s in&oices
%@
near )ear5end(
C.
The a'ditor rando#l) selects ite#s fro# the in&entor) list for &o'ching prices
on an e2tended in&entor) listing back to prior )ear3s working papers(
D.
The a'ditor rando#l) selects &endor3s in&oices for tracing prices fro#
&endor3s in&oices near the end of the )ear to prices on the e2tended in&entor)
listing(
10. If a client has a strong perpet'al in&entor) s)ste#$ the a'ditor is likel) to plan0
A.
in&entor) obser&ations at an interi# date(
B.
in&entor) price testing at )ear5end(
C.
in&entor) tests of the lower of cost or #arket at an interi# date(
D.
direct confir#ations of in&entor) pledged as collateral for loans(
11. In the a'dit of in&entor)$ selecting in&entor) ite#s fro# a perpet'al #aster file$
going to the location$ and obtaining test co'nts is intended to prod'ce e&idence for
which a'dit ob1ecti&e?
A.
the transaction ob1ecti&es that all transactions occ'rred
B.
the balance ob1ecti&e that in&entor) e2ists
C.
the balance ob1ecti&e that all in&entor) is recorded
D.
the balance ob1ecti&e that the client has rights to the in&entor)
12. Which of the following wo'ld represent the best e&idence for testing the net
reali:able &al'e of in&entor)?
A.
In&estigate sale prices on sales of in&entor) #ade after )ear5end(
B.
Io'ch in&entor) prices to &endor in&oices at an interi# date(
C.
Io'ch in&entor) prices to the perpet'al in&entor)(
D.
In&estigate all prices that ha&e decreased b) #ore than .D d'ring the )ear(
13. Which of the following is NOT a significant concern abo't fra'd in the pa)roll
c)cle?
A.
4#plo)ees in&ol&ed in preparing and pa)ing the pa)roll #a) process data
for fictitio's e#plo)ees and then di&ert the pa)checks to their own 'se(
B.
When there is fre-'ent t'rno&er of personnel in a co#pan)$ there is the risk
that a ter#inated e#plo)ee is contin'ed on the pa)roll(
C.
Hanage#ent #a) o&erstate pa)roll costs as part of earning #anage#ent(
D.
Hanage#ent #a) o&ertl) #isclassif) or KpadL labor cost in go&ern#ent
contract work to defra'd the agenc)(
14. A client 1'st read abo't a b'siness pa)ing e#plo)ees e2traordinar) s'#s of #one)
to a &ariet) of e#plo)ees( 42plain how the client co#pan) wo'ld 'se progra##ed
%A
controls to pre&ent this t)pe of &al'ation proble#(
A.
Test a check digit e#bedded in the e#plo)ee n'#ber(
B.
"erfor# a li#it test related to the class of e#plo)ee(
C.
,heck the e#plo)ee n'#ber against the #aster pa)roll file(
D.
,o#pare the total n'#ber of pa)roll disb'rse#ents with a predeter#ined
batch total(
15. If a progra##ed control o&er &al'ation of indi&id'al pa)roll ite#s is going to be
effecti&e$ which of the following controls #'st also be effecti&e?
A.
controls o&er the co#pleteness of pa)roll ti#e cards
B.
controls o&er access to pa)roll reports
C.
controls o&er the processing of pa)roll ta2es
D.
controls o&er access to the e#plo)ee #aster file
16. In a co#p'teri:ed pa)roll s)ste# en&iron#ent$ an a'ditor wo'ld be #ost effecti&e at
finding weaknesses in internal controls o&er the occ'rrence of pa)roll transactions
b) s'b#itting test data0
A.
incorrect hash totals(
B.
with total pa)roll that e2ceeds a predeter#ined li#it(
C.
with an acco'nt n'#ber that does not #atch acco'nt n'#bers on 1ob tickets(
D.
incorrect e#plo)ee n'#bers that do not contain appropriate check digits(
17. The lower assessed le&el of control risk approach #a) be 'sed b) the e2ternal
a'ditor in the personnel ser&ices c)cle beca'se$ a#ong other factors0
A.
the chance of e#plo)ee fra'd is re#ote(
B.
o'tside go&ern#ental a'ditors spend considerable ti#e in&estigating the
pa)roll area in #ost co#panies(
C.
a'dit risk in the area relates pri#aril) to the hiring of co#petent personnel(
D.
pa)roll transactions are generall) ro'tine and processed in a high &ol'#e(
18. Which of the following a'dit ob1ecti&es is L4AST LI84L9 to be acco#plished b)
&o'ching pa)roll transactions to s'pporting doc'#entation e(g($ ti#e cards and
e#plo)ee contracts!?
A.
the occ'rrence of pa)roll transactions
B.
the co#pleteness of pa)roll transactions
C.
the acc'rac) of pa)roll transactions
D.
proper c'toff related to pa)roll transactions
%B
*7
CAWABAN LATIHAN BAB 115 1=
NO CH 11 CH 12 CH 13 CH 14 CH 15 CH 16
1 E A B B B ,
% B B B B A E
* A , A E , A
+ , E , , , B
. A , , E A A
= E , A B B ,
@ , E B E B B
A E E E , E ,
B B , A A , ,
17 B E E B , A
11 , A B B , B
1% , A , E , A
1* E B B A E ,
1+ B , , A B B
1. B A , , B E
1= A B A A , E
1@ E B A E E
1A B A , B B
1B , B ,
%7 ,
*1