Professional Documents
Culture Documents
Auditing
a. Production scheduling.
b. Inventory policy.
c. Product quality.
d. Advertising budget
Answer: C
Solution:
a. Incorrect. This would seldom be a long-range topic.
b. Incorrect. This would rarely be a long-range concern.
c. Correct. This would be a long-range planning topic because it affects the
company’s market position, which entails long-term consideration.
d. Incorrect. This is a certainly a concern, but usually is not for long-range
planning.
Managerial Accounting
2. Zoltrixound company manufactures high quality speakers for desktop and laptop
computers. Last month Zoltrixound suffered a loss of $18,000. The income statement for
the last month is as follows:
January 3, 2019 [COLEGIO SAN AGUSTIN - BACOLOD]
a. 25%
b. 30%
c. 15%
d. 20%
Answer: B
Moderate
Auditing
1. Which of the following tests would best assist the auditor in deciding
whether to investigate this anonymous tip further?
Answer: C
Solution:
a. Incorrect. The current quarter’s expense would equal the prior period’s
activity unless the manager just started this fraud. The auditor has no
information on how long this might have been occurring.
b. Incorrect. Physical testing would not locate nonexistent parts that have
already been charged to maintenance.
c. Correct. An analysis of repair parts charged to maintenance would
quantify the excessive number of items and detect that abuse may be
occurring.
January 3, 2019 [COLEGIO SAN AGUSTIN - BACOLOD]
Managerial Accounting
A B C TOTAL
a. increase by $4,000
b. decrease by $4,000
c. increase by $2,000
d. decrease by $2,000
e. increase by $6,000
Answer: D
Difficult
Auditing
January 3, 2019 [COLEGIO SAN AGUSTIN - BACOLOD]
a. I and II only.
b. I and IV only.
Answer: A
Solution:
I and II. Correct. Internal auditors consider the following when determining the
appropriateness and sufficiency of resources:
• Knowledge, skills, and other competencies of the internal auditing staff when
selecting internal auditors for the engagement.
III. Incorrect. Using the proper sampling technique is a means to achieve to the
engagement objective.
Managerial Accounting
= $447,200/0.52
= $860,000
Product A: $320,000
Product B: $400,000
January 3, 2019 [COLEGIO SAN AGUSTIN - BACOLOD]
Product C: $280,000
Total: $320,000 + $400,000 + $280,000 = $1,000,000
Solution:
= $447,200/0.43
= $1,040,000