The IMA ethical standard that requires the management accountant to act with integrity

The IMA ethical standard that requires the management accountant to act with integrity A) requires the management accountant to mitigate actual conflicts...

The strategy map can be compared to the balanced scorecard (BSC) in that

The strategy map can be compared to the balanced scorecard (BSC) in that A) the strategy map is a subset of the BSC. B) the strategy map deals with...

Firms that want to grow quickly in the global marketplace often employ the cost leadership strategy because

Firms that want to grow quickly in the global marketplace often employ the cost leadership strategy because A) this produces favorable customs rates...

To determine whether a particular action is professionally ethical or not, using the Institute of Management Accountants Statement of Ethical Professional Practice, it is necessary to know:

To determine whether a particular action is professionally ethical or not, using the Institute of Management Accountants Statement of Ethical Professional...

Professional certifications are issued by the American Institute of Certified Public Accountants (AICPA), the Institute of Management Accountants (IMA), the Chartered Institute of Management Accountants (CIMA), and the Chartered Professional Accountants of Canada (CPA-Canada), among other professional accounting organizations. The Certificate in Management Accounting (CMA) is issued by the

Professional certifications are issued by the American Institute of Certified Public Accountants (AICPA), the Institute of Management Accountants (IMA),...

A management method in which managers and employees commit to a process of continuous improvement is best described as

A management method in which managers and employees commit to a process of continuous improvement is best described as A) total quality management. B)...

Cost management has evolved from a focus on measurement to one of identifying those measures that are critical to the organization's success. Given this new focus, indicate which one of the following types of cost management systems cost managers are likely to be striving for.

Cost management has evolved from a focus on measurement to one of identifying those measures that are critical to the organization's success. Given...

Walmart, Costco, and Dollar General are retailers that probably compete on the basis of

Walmart, Costco, and Dollar General are retailers that probably compete on the basis of A) quality and customer service. B) product differentiation. C)...

The management accountants in an organization probably report directly to the

The management accountants in an organization probably report directly to the A) controller. B) treasurer. C) chief executive officer (CEO). B)...

Management accounting, as defined by the IMA, uses the expertise of the management accountant to

Management accounting, as defined by the IMA, uses the expertise of the management accountant to A) improve quality and reduce manufacturing cost. B)...

Which of the following is the correct sequence in which cost management information is developed and used?

Which of the following is the correct sequence in which cost management information is developed and used? A) Business events, data, information, analysis,...

The IMA definition of management accounting states that

The IMA definition of management accounting states that A) management accounting is the process of gathering, reporting, and analyzing information...

Which of the following accounts is used to accumulate the actual MOH costs incurred during a period?

Which of the following accounts is used to accumulate the actual MOH costs incurred during a period? A Applied MOH B WIP C MOH Control D COGS E F...

Which of the following documents is used as the basis for posting to the DL section of the job cost sheet?

Which of the following documents is used as the basis for posting to the DL section of the job cost sheet? A Purchase requisition B material req C...

Which of the following documents is used as a basis for posting to the DM section of the job cost sheet?

Which of the following documents is used as a basis for posting to the DM section of the job cost sheet? A Purchase requisition B material req C Receiving...

Which of the following companies would most likely use job costing?

Which of the following companies would most likely use job costing? A paper manufacturer B paint producer C breakfast cereal maker D advertising ...

Which of the following is not a characteristic of job costing?

Which of the following is not a characteristic of job costing? A Each job is distinguishable from the other jobs B Identical units are produced on...

For which of the following businesses would the job order cost system be appropriate?

For which of the following businesses would the job order cost system be appropriate? A auto repair shop B crude oil refinery C drug manufacturer D...

Cost pools are:

Cost pools are: A costs that are accumulated before being allocated to cost objects on some common basis B costs that are relevant to decision making...

In a labor intensive company in which more OH is used by more highly skilled and paid ees, which activity base would be most appropriate for applying OH to production?

In a labor intensive company in which more OH is used by more highly skilled and paid ees, which activity base would be most appropriate for applying...

When a manufacturing company has a highly automated manufacturing plant producing many different products, what is probably the most appropriate basis of applying OH costs to WIP?

When a manufacturing company has a highly automated manufacturing plant producing many different products, what is probably the most appropriate basis...

The basic cost flow model is:

The basic cost flow model is: A BB+TO=TI+EB B BB+TO-TI=EB C EB=BB+TI-TO D EB-BB=TO-TI E EB+TI-TO=BB Answer: ...

The Cost Flow Diagram includes all of the following except:

The Cost Flow Diagram includes all of the following except: A Selling expenses B DM C DL D FMOH E VMOH Answer: ...

Which of the following statements are false regarding cost allocations and product costing?

Which of the following statements are false regarding cost allocations and product costing? A It is easier to determine the individual product cost...

Which of the following statements is (are) true regarding product costing?

Which of the following statements is (are) true regarding product costing? A individual product costs are relevant for managerial decision-making...

In the standard regression equation of y=a+bx, the letter y is best described at the:

In the standard regression equation of y=a+bx, the letter y is best described at the: A independent variable B dependent variable C slope of the equation D...

Which of the following is NOT a data problem an analyst must watch for when estimating cost behavior?

Which of the following is NOT a data problem an analyst must watch for when estimating cost behavior? A missing data B Outliers C Allocated Costs D...

Which of the following is the difference between variable costs and fixed costs?

Which of the following is the difference between variable costs and fixed costs? A variable costs per unity fluctuate and fixed CPU remain constant B...

In determining cost behavior in business, the cost function is often expressed as Y= a+bX. Which on the the following cost estimate methods should NOT be used in estimating fixed and variable costs for the equation?

In determining cost behavior in business, the cost function is often expressed as Y= a+bX. Which on the the following cost estimate methods should NOT...

In the standard regression equation of y=a+bx, the letter a is best described as the:

In the standard regression equation of y=a+bx, the letter a is best described as the: A independent variable B dependent variable C slope of the equation D...

A disadvantage of the high-low method of cost analysis is that it:

A disadvantage of the high-low method of cost analysis is that it: A typically results in totally inaccurate cost formula B is too time consuming...

Which of the following cost estimation methods finds the variable portion of a mixed cost before calculating the fixed portion?

Which of the following cost estimation methods finds the variable portion of a mixed cost before calculating the fixed portion? A Scattergraph B High-Low C...

In the cost equation TC+F+VX, V is best described as:

In the cost equation TC+F+VX, V is best described as: A costs that do not vary with changes in the activity level. B intercept of the cost equation C...

In the cost equation TC=F+VX, X is best described as the:

In the cost equation TC=F+VX, X is best described as the: A costs that do not vary with changes in the activity level. B costs that do vary with changes...

A manager is trying to estimate the manufacturing costs of a new product. The company makes several other products that utilize some of the same manufacturing procedures as the new product. Which cost estimate method would be the best method to determine the total cost of manufacturing the new product?

A manager is trying to estimate the manufacturing costs of a new product. The company makes several other products that utilize some of the same manufacturing...

The journal entry to record $200 of depreciation on factory equipment for the current period involves which of the following?

The journal entry to record $200 of depreciation on factory equipment for the current period involves which of the following? A) debit to accumulated...

Lakeside Company estimated manufacturing overhead costs for 2009 at $378,000, based on 180,000 estimated direct labor hours. Actual direct labor hours for 2009 totaled 195,000. Manufacturing overhead contains debit entries totaling $391,500. What was the amount of manufacturing overhead for 2009?

Lakeside Company estimated manufacturing overhead costs for 2009 at $378,000, based on 180,000 estimated direct labor hours. Actual direct labor hours...

How is the predetermined manufacturing overhead rate used to allocate manufacturing overhead calculated?

How is the predetermined manufacturing overhead rate used to allocate manufacturing overhead calculated? A) by dividing the total estimated manufacturing...

Door Company estimated manufacturing overhead costs for 2009 at $378,000. The predetermined manufacturing overhead rate was based on 105,000 estimated direct labor hours. Actual direct labor hours for 2009 totaled 110,000. The manufacturing overhead account showed debit entries totaling $394,000. For the year, was overhead over or underallocated and by how much?

Door Company estimated manufacturing overhead costs for 2009 at $378,000. The predetermined manufacturing overhead rate was based on 105,000 estimated...

Manufacturing overhead is overallocated $1,000 at the end of the current period. The journal entry to dispose of the overallocated overhead balance involves a debit to:

Manufacturing overhead is overallocated $1,000 at the end of the current period. The journal entry to dispose of the overallocated overhead balance...

Actual manufacturing overhead for the current period is $19,600 while allocated manufacturing overhead for the current period is $18,700. What is the proper entry to dispose of the manufacturing overhead balance?

Actual manufacturing overhead for the current period is $19,600 while allocated manufacturing overhead for the current period is $18,700. What is the...

When a job is completed in a job costing system, the journal entry involves which accounts?

When a job is completed in a job costing system, the journal entry involves which accounts? A) a debit to finished goods inventory and a credit to...

Actual manufacturing overhead for 2009 amounts to $102,500, allocated manufacturing overhead for 2009 amounts to $98,700. By how much is manufacturing overhead over/underallocated?

Actual manufacturing overhead for 2009 amounts to $102,500, allocated manufacturing overhead for 2009 amounts to $98,700. By how much is manufacturing...

Which of the following is the most significant cost for a service company which used job order costing?

Which of the following is the most significant cost for a service company which used job order costing? A) labor costs B) indirect costs C) supplies...

The journal entry to assign $1,500 of direct labor and $200 of indirect labor for the current period involves a debit to what account(s)?

The journal entry to assign $1,500 of direct labor and $200 of indirect labor for the current period involves a debit to what account(s)? A) manufacturing...

The journal entry to issue $500 of direct materials and $30 of indirect materials to production involves a debit to what account(s)?

The journal entry to issue $500 of direct materials and $30 of indirect materials to production involves a debit to what account(s)? A) work in process...

Allocation of direct and indirect materials requires a credit to what account?

Allocation of direct and indirect materials requires a credit to what account? A) materials inventory B) manufacturing overhead C) work in process...

Direct materials flow directly into what account?

Direct materials flow directly into what account? A) cost of goods sold B) finished goods inventory C) manufacturing overhead D) work in process inventory Answer:...

The Hemingway Company uses a job costing system. In April, material requisitions of $44,000 were issued (direct materials, $40,000) and materials purchases of both direct and indirect materials totaled $56,600. The ending balance in materials inventory was $18,400. What was the beginning balance?

The Hemingway Company uses a job costing system. In April, material requisitions of $44,000 were issued (direct materials, $40,000) and materials purchases...

In job costing, direct materials used in production are debited to which of the following?

In job costing, direct materials used in production are debited to which of the following? A) manufacturing overhead B) work in process inventory C)...

In job costing, indirect materials used in production are credited to which of the following?

In job costing, indirect materials used in production are credited to which of the following? A) finished goods inventory B) materials inventory C)...

The entry to transfer direct labor and indirect labor costs from manufacturing wages into production includes a debit to which of the following?

The entry to transfer direct labor and indirect labor costs from manufacturing wages into production includes a debit to which of the following? A)...

The __________ is a document prepared by manufacturing personnel to request materials for the production process.

The __________ is a document prepared by manufacturing personnel to request materials for the production process. A) cost ticket B) manufacturing...

Which of the following would be credited to accumulate the actual labor costs incurred?

Which of the following would be credited to accumulate the actual labor costs incurred? A) manufacturing overhead B) work in process inventory C)...

Which of the following would be debited to assign the costs of indirect labor?

Which of the following would be debited to assign the costs of indirect labor? A) manufacturing overhead B) wages payable C) finished goods inventory D)...

Which of the following would be debited to record direct labor costs actually incurred?

Which of the following would be debited to record direct labor costs actually incurred? A) wages payable B) manufacturing wages C) manufacturing overhead D)...

Which of the following would be debited to record the requisition of direct materials?

Which of the following would be debited to record the requisition of direct materials? A) materials inventory B) work in process inventory C) finished...

The entry to record the purchase of materials on account using a job costing system would include a:

The entry to record the purchase of materials on account using a job costing system would include a: A) debit to materials inventory. B) debit to...

What type of costing system would a manufacturer of luxury yachts use?

What type of costing system would a manufacturer of luxury yachts use? A) job costing B) process costing C) either job costing or process costing D)...

What type of costing system would a manufacturer of plywood use?

What type of costing system would a manufacturer of plywood use? A) job costing B) process costing C) either job costing or process costing D) both...

________ is assigning costs such as direct materials and direct labor to products.

________ is assigning costs such as direct materials and direct labor to products. A) Cost assigning B) Cost tracing C) Cost allocation D) None of...

Which of the following companies is most likely to use job costing?

Which of the following companies is most likely to use job costing? A) Exxon Mobil Oil Refinery B) Elizabeth's Custom Furniture Company C) DuPont...

The document used to accumulate the costs of a job is called the:

The document used to accumulate the costs of a job is called the: A) manufacturing overhead document. B) job cost record. C) labor time ticket. D)...

Job costing is most likely used in which of the following industries?

Job costing is most likely used in which of the following industries? A) pharmaceuticals B) printing C) chemicals D) food and beverage Answer:...

Which of the following is an example of an industry that would use a process costing system rather than a job costing system?

Which of the following is an example of an industry that would use a process costing system rather than a job costing system? A) custom furniture B)...

What type of businesses can use a job costing system?

What type of businesses can use a job costing system? A) service and manufacturing businesses B) Service and merchandising businesses C) manufacturing...

Which costing system would better account for a unique individual product?

Which costing system would better account for a unique individual product? A) job costing system B) product costing system C) process costing system D)...

What are the two basic types of costing systems?

What are the two basic types of costing systems?  A) product costing and materials inventory costing B) job costing and process costing C) periodic...

Overapplied manufacturing overhead occurs when:

Overapplied manufacturing overhead occurs when: A. applied overhead exceeds actual overhead. B. applied overhead exceeds estimated overhead. C. actual...

Which of the following is correct with respect to closing out overapplied manufacturing overhead to Cost of Goods Sold versus closing it out to Cost of Goods Sold and Finished Goods and Work in Process inventories?

Which of the following is correct with respect to closing out overapplied manufacturing overhead to Cost of Goods Sold versus closing it out to Cost...

Which terms will make the following statement true? When manufacturing overhead is overapplied, the Manufacturing Overhead account has a balance and applied manufacturing overhead is greater than manufacturing overhead.

Which terms will make the following statement true? When manufacturing overhead is overapplied, the Manufacturing Overhead account has a balance and...

Martinez Aerospace Company uses a job-order costing system. The direct materials for Job #045391 were purchased in July and put into production in August. The job was not completed by the end of August. At the end of August, in what account would the direct material cost assigned to Job #045391 be located?

Martinez Aerospace Company uses a job-order costing system. The direct materials for Job #045391 were purchased in July and put into production in August....

In a job-order costing system, indirect materials that have been previously purchased and that are used in production are recorded as a debit to:

In a job-order costing system, indirect materials that have been previously purchased and that are used in production are recorded as a debit to: A....

The balance in the Work in Process account equals:

The balance in the Work in Process account equals: A. the balance in the Finished Goods inventory account. B. the balance in the Cost of Goods Sold...

Which of the following accounts is debited when direct labor is recorded?

Which of the following accounts is debited when direct labor is recorded? A. Work in process B. Salaries and wages expense C. Salaries and wages payable D....

In a job-order costing system, the use of direct materials that have been previously purchased is recorded as a debit to:

In a job-order costing system, the use of direct materials that have been previously purchased is recorded as a debit to: A. Raw Materials inventory. B....

In a job-order costing system, direct labor cost is ordinarily debited to:

In a job-order costing system, direct labor cost is ordinarily debited to: A. Manufacturing Overhead. B. Cost of Goods Sold. C. Finished Goods. D....

What document is used to determine the actual amount of direct labor to record on a job cost sheet?

What document is used to determine the actual amount of direct labor to record on a job cost sheet? A. Time ticket B. Payroll register C. Production...

Which of the following would probably be the least appropriate allocation base for allocating overhead in a highly automated manufacturer of specialty valves?

Which of the following would probably be the least appropriate allocation base for allocating overhead in a highly automated manufacturer of specialty...

Which of the following is the correct formula to compute the predetermined overhead rate?

Which of the following is the correct formula to compute the predetermined overhead rate? A. Estimated total units in the allocation base divided...

In computing its predetermined overhead rate, Marple Company inadvertently left its indirect labor costs out of the computation. This oversight will cause:

In computing its predetermined overhead rate, Marple Company inadvertently left its indirect labor costs out of the computation. This oversight will...

Which of the following information would be included in the introductory paragraph of the auditor's report on internal control over financial reporting if the report is presented separately from the auditor's report on the entity's financial statements?

Which of the following information would be included in the introductory paragraph of the auditor's report on internal control over financial reporting...

If the auditors encounter a significant scope limitation in evaluating a public company`s internal control over financial reporting, which of the following types of opinions on the effectiveness of the company`s internal control over financial reporting would be appropriate?

If the auditors encounter a significant scope limitation in evaluating a public company`s internal control over financial reporting, which of the following...

Which of the following statements is not true with respect to the auditor's report on internal control over financial reporting?

Which of the following statements is not true with respect to the auditor's report on internal control over financial reporting? a. the report may...

Which report would not be appropriate for a public accounting firm to provide on financial reporting controls?

Which report would not be appropriate for a public accounting firm to provide on financial reporting controls? a. unqualified-- no material weaknesses...

Which of the following would probably not be considered an indication of a material weakness?

Which of the following would probably not be considered an indication of a material weakness? a. evidence of a material misstatement b. immaterial...

When completing the audit of internal controls for an issuer, AS5 requires auditors to test

When completing the audit of internal controls for an issuer, AS5 requires auditors to test a. operating effectiveness only b. neither operating nor...

When completing the audit of internal controls for an issuer, AS5 requires auditors of public companies to report on

When completing the audit of internal controls for an issuer, AS5 requires auditors of public companies to report on a. management's report on internal...

When completing the audit of internal controls for an issuer, the PCAOB requires auditors of public companies to audit internal controls over

When completing the audit of internal controls for an issuer, the PCAOB requires auditors of public companies to audit internal controls over a. all...

Which of the following does not accurately summarise auditor's requirements regarding internal control?

Which of the following does not accurately summarise auditor's requirements regarding internal control? a. test controls- public entity yes; non public...

When completing the audit of internal controls for an issuer, the severity of an internal control deficiency depends on:

When completing the audit of internal controls for an issuer, the severity of an internal control deficiency depends on: a. neither answer is correct b....

A material weakness is a situation in which

A material weakness is a situation in which a. it is reasonably possible that a material misstatement would not be detected on a timely basis b. it...

When planning the audit of internal controls for an issuer, the audit team should

When planning the audit of internal controls for an issuer, the audit team should a. identify significant accounts, locations, and assertions b. re-perform...

According to the PCAOB, during the audit of internal controls for an issuer, the ultimate objective of testing the design effectiveness of internal controls is to

According to the PCAOB, during the audit of internal controls for an issuer, the ultimate objective of testing the design effectiveness of internal...

The purpose of separating the duties of hiring personnel and distributing payroll checks is to separate the

The purpose of separating the duties of hiring personnel and distributing payroll checks is to separate the a. administrative controls from the internal...

A transaction-level internal control activity is best described as

A transaction-level internal control activity is best described as a. a method for recording, summarising, and reporting financial information b. an...

Tests of controls in a GAAS audit are required for

Tests of controls in a GAAS audit are required for a. obtaining evidence about the financial statement assertions b. obtaining evidence about the operating...

A bridge work-paper shows the connection between

A bridge work-paper shows the connection between a. management objectives and accounting system procedures b. control evaluation findings and subsequent...

Which of the following is a device designed to help the audit team obtain evidence about the accounting and control activities of the client?

Which of the following is a device designed to help the audit team obtain evidence about the accounting and control activities of the client? a. all...

In most audits of large entities, control risk assessment contributes to audit efficiency, which means that

In most audits of large entities, control risk assessment contributes to audit efficiency, which means that a. auditors will be able to reduce the...

Which of the following is a preventative control?

Which of the following is a preventative control? a. detailed fluctuation analysis completed by the CFO for revenue b. separation of duties between...

To test the operating effectiveness of a control, an audit team might use a combination of each of the following tests except

To test the operating effectiveness of a control, an audit team might use a combination of each of the following tests except a. confirmation of balances b....

Effectiveness of audit procedures would be reduced by

Effectiveness of audit procedures would be reduced by a. performing procedures during the interim period as opposed to at the fiscal year-end date b....

The primary purpose for obtaining an understanding of a nonpublic audit client's internal control is to

The primary purpose for obtaining an understanding of a nonpublic audit client's internal control is to a. provide the rational for the inherent risk...

The most important fundamental component of an entity's internal control is

The most important fundamental component of an entity's internal control is a. reliability of financial reporting b. people who operate the control...

Auditors perform analytical procedures in the planning stage of an audit for the purpose of

Auditors perform analytical procedures in the planning stage of an audit for the purpose of a. identifying unusual conditions that deserve more auditing...

Which of the following statements best describes auditors' responsibility for detecting a client's noncompliance with a law or regulation?

Which of the following statements best describes auditors' responsibility for detecting a client's noncompliance with a law or regulation? a. auditors...

When auditors become aware of noncompliance with a law or regulation committed by client personnel, the primary reason that the auditors should obtain a better understanding of the nature of the act is to

When auditors become aware of noncompliance with a law or regulation committed by client personnel, the primary reason that the auditors should obtain...

An audit committee is

An audit committee is a. a committee composed of persons not associating in any way with the client or the board of directors b. composed of internal...

When evaluating whether accounting estimates made by management are reasonable, auditors would be most interested in which of the following?

When evaluating whether accounting estimates made by management are reasonable, auditors would be most interested in which of the following? a. evidence...

Under the Private Securities Litigation Reform Act, independent auditors are required to first

Under the Private Securities Litigation Reform Act, independent auditors are required to first a. report clearly inconsequential noncompliance to...

It is acceptable under generally accepted auditing standards for an audit team to

It is acceptable under generally accepted auditing standards for an audit team to a. assess inherent risk at zero and perform a minimum of detection...

An audit strategy contains

An audit strategy contains a. documentation of the assertions under audit, the evidence obtained, and the conclusions reached b. reconciliation of...

Auditors are not responsible for accounting estimates with respect to

Auditors are not responsible for accounting estimates with respect to a. determining the reasonableness of estimates b. determining that estimates...

When a company that sells its products for a (gross) profit increases its sales by 15 percent and its cost of goods sold by 7 percent, the cost of goods ratio will

When a company that sells its products for a (gross) profit increases its sales by 15 percent and its cost of goods sold by 7 percent, the cost of goods...

Analytical procedures used when planning an audit should concentrate on

Analytical procedures used when planning an audit should concentrate on a. accounts and relationships that can represent specific potential problems...

Analytical procedures can be used in which of the following ways?

Analytical procedures can be used in which of the following ways? a. as "attention-directing" methods when planning an audit at the beginning b. as...

Analytical procedures are generally used to produce evidence from

Analytical procedures are generally used to produce evidence from a. detailed examination of external, external-internal, and internal documents b....

Which of the following is a specific procedural response to a particular fraud risk in an account balance or class of transactions?

Which of the following is a specific procedural response to a particular fraud risk in an account balance or class of transactions? a. exercising...

If tests of controls induce the audit team to change the assessed level of control risk for fixed assets from 0.4 to 1.0 and audit risk (0.05) and inherent risk remain constant, the acceptable level of detection risk is most likely to

If tests of controls induce the audit team to change the assessed level of control risk for fixed assets from 0.4 to 1.0 and audit risk (0.05) and inherent...

The auditors assessed risk of material misstatement at 0.50 and said they wanted to achieve a 0.05 risk of failing to express a correct opinion on financial statements that were materially misstated. What detection risk do the auditors plan to use for planning the remainder of the audit work?

The auditors assessed risk of material misstatement at 0.50 and said they wanted to achieve a 0.05 risk of failing to express a correct opinion on financial...

The risk that the auditors' own procedures will lead to the decision that material misstatements do not exist in the financial statements when in fact such misstatements do exist is

The risk that the auditors' own procedures will lead to the decision that material misstatements do not exist in the financial statements when in fact...

The risk of material misstatements is composed of which audit risk components?

The risk of material misstatements is composed of which audit risk components? a. inherent risk, control risk and detection risk b. inherent risk...

The likelihood that material misstatements may have entered the accounting system and not been detected and corrected by the client's internal control is referred to as

The likelihood that material misstatements may have entered the accounting system and not been detected and corrected by the client's internal control...

Which of the following circumstances would most likely cause an audit team to perform extended procedures?

Which of the following circumstances would most likely cause an audit team to perform extended procedures? a. supporting documents are produced when...

One of the typical characteristics of management fraud is

One of the typical characteristics of management fraud is a. falsification of documents in order to misappropriate funds from an employer b. conversion...

If sales were overstated by recording a false credit sale at the end of the year, where could you find the false "dangling debit?"

If sales were overstated by recording a false credit sale at the end of the year, where could you find the false "dangling debit?" a. cost of goods...

Auditing standards do not require auditors of financial statements to

Auditing standards do not require auditors of financial statements to a. assess the risk of occurrence of errors and frauds b. understand the nature...

Failure to meet company objectives is a result of

Failure to meet company objectives is a result of a. audit risk b. inherent risk c. information risk d. business risk Answer: d. business ...

Enterprise risk management is the responsibility of:

Enterprise risk management is the responsibility of: a. company management b. the external auditors c. the company's insurance providers d. all of...

When evaluating whether accounting estimates made by mangement are reasonable, the audit team would be most interested in which of the following?

When evaluating whether accounting estimates made by mangement are reasonable, the audit team would be most interested in which of the following? a....

Confirmations of accounts receivable provide evidence primarily about which two assertions?

Confirmations of accounts receivable provide evidence primarily about which two assertions? a. existence and rights & obligations b. valuation...

When auditing the existence assertion for an asset, auditors proceed from the

When auditing the existence assertion for an asset, auditors proceed from the a. general ledger back to the supporting original transaction documents b....

The revenue cycle of a company generally includes which accounts?

The revenue cycle of a company generally includes which accounts? a. inventory, accounts payable, and general expenses b. cash, notes payable, and...

An audit plan contains

An audit plan contains a. specifications of audit standards relevant to the financial statements being audited b. documentation of the assertions...

A primary advantage of using CAATs in the audit of an advanced computerized system is that it enables the auditor to

A primary advantage of using CAATs in the audit of an advanced computerized system is that it enables the auditor to a. substantiate the accuracy...

Which of the following is an advantage of computer-assisted audit techniques (CAATs)?

Which of the following is an advantage of computer-assisted audit techniques (CAATs)? a. the use of CAATs can be substituted for a relatively large...

Spreadsheet software would be most useful for which of the following audit activities?

Spreadsheet software would be most useful for which of the following audit activities? a. drafting a planning memorandum b. preparing a comparison...

An auditor's permanent file audit documentation most likely will contain

An auditor's permanent file audit documentation most likely will contain a. excerpts of the corporate charter and bylaws b. the most recent engagement...

Audit documentation that shows the detailed evidence and procedures regarding the balance in the accumulated depreciation account for the year under audit will be found in the

Audit documentation that shows the detailed evidence and procedures regarding the balance in the accumulated depreciation account for the year under...

With respect to the concept of materiality, which one of the following statements is correct?

With respect to the concept of materiality, which one of the following statements is correct? a. materiality is a matter or professional judgment b....

Prior to accepting a new engagement, a public accounting firm should

Prior to accepting a new engagement, a public accounting firm should a. assess the firm's resources to ensure that they are sufficient to permit them...

Which of the following procedures would most likely be performed during planning?

Which of the following procedures would most likely be performed during planning? a. performing a search for unrecorded liabilities b. reporting internal...

Which of the following communications is most likely to be written before the balance-sheet date?

Which of the following communications is most likely to be written before the balance-sheet date? a. a report to the audit committee on the results...

Which of the following engagement planning procedures would most likely assist the auditor in identifying related-party transactions before the balance-sheet date?

Which of the following engagement planning procedures would most likely assist the auditor in identifying related-party transactions before the balance-sheet...

When auditing Vandalay Jewelry, Costanza CPA was not familiar with the quality and cut of the company's precious jewel inventory. To address this shortcoming, Costanza hired Benes, an expert in jewel valuation, to assist in the inventory valuation. Should Costanza refer to Benes's work in the audit report?

When auditing Vandalay Jewelry, Costanza CPA was not familiar with the quality and cut of the company's precious jewel inventory. To address this shortcoming,...

An audit engagement letter should normally include which of the following matters of agreement between the auditor and the client?

An audit engagement letter should normally include which of the following matters of agreement between the auditor and the client? a. methods of statistical...

Which of the following is not a benefit claimed for the practice of determining materiality in the initial planning stage of an audit?

Which of the following is not a benefit claimed for the practice of determining materiality in the initial planning stage of an audit? a. avoiding...

When planning an audit, which of the following is not a factor that affects auditors' decisions about the quantity, type, and content of audit documentation?

When planning an audit, which of the following is not a factor that affects auditors' decisions about the quantity, type, and content of audit documentation? a....

Generally accepted auditing standards require that auditors always prepare and use

Generally accepted auditing standards require that auditors always prepare and use a. the written time budgets and schedules for performing each audit b....

When initiating communications with predecessor auditors, prospective auditors should expect

When initiating communications with predecessor auditors, prospective auditors should expect a. to take responsibility for obtaining the client's...