ACC 576 MIDTERM QUESTIONS ACC576 MIDTERM QUESTIONS
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Which of the following is least likely to be considered a risk assessment procedure?
Confirmation of ending accounts receivable.
Inspection of documents.
Observation of the performance of certain accounting procedures.
An auditor’s engagement letter most likely would include a statement regarding
Management’s responsibility to provide certain written representations to the auditor.
Conditions under which the auditor may modify the preliminary judgment about materiality.
Internal control activities that would reduce the auditor’s assessment of control risk.
Materiality matters that could modify the auditor’s preliminary assessment of fraud risk.
Which of the following describes a weakness in accounts payable procedures?
The accounts payable clerk files invoices and supporting documentation after payment.
The accounts payable clerk manually verifies arithmetic on the vendor invoice.
The accounts payable system compares the receiving report to the vendor invoice.
The accounts payable manager issues purchase order
Which of the following procedures is an accountant required to perform when reviewing the financial statements of a nonpublic entity in accordance with Statements on Standards for Accounting and Review Services (SSARS)?
Assess control risk.
Obtain a management representation letter.
Confirm account balances.
Perform a physical inventory observati
Which of the following procedures would least likely result in the discovery of possible illegal acts?
Reading the minutes of the board of directors’ meetings.
Making inquiries of the client’s management.
Performing tests of details of transactions....