ACC 544 Final Exam
1) Which is NOT one of the AICPA`s Code of Professional
2) The ethical philosophy that considers the consequences of
similar persons acting under similar circumstances is called
3) The fundamental issues in independence require that the
4) Auditors have greater liability under the Securities Act
of 1933. Which is the reason that this greater liability exists?
5) The legal doctrine that states that a successful
plaintiff may recover the full amount of damages from any defendant that has
the ability to pay is called
6) The SEC regulation that governs disclosures in annual
reports other than financial statements is the
7) Inspection of tangible assets provides evidence for which
8) The risk that the auditor may provide an inappropriate
opinion based on their review of materially misstated financial statements is
referred to as
9) Auditors perform the steps in which order?
10) An internal control questionnaire (ICQ) contains the
question: "Does a single individual receive and list ca to sales and
general ledgers?" What action must an auditor take if the manager of
accounting responds yes to the
11) In addition to gaining an understanding of the internal
controls, an external auditor, at minimum, is expect
12) Which method provides the auditor with the best visual
grasp of a system and a means for analyzing complex operations?
13) Which of the accounts is NOT included in the revenue and
14) The most reliable evidence comes from
15) Custody is transferred from the warehouse to the
shipping department upon authorization of the
16) An enlightened management may decrease the probability
of fraud in the company best by
17) A proof of cash is normally used
18) Which is an appropriate audit program step for the
review of canceled checks for authorized signatures?
19) The production authorization starts with a
20) Which is NOT recognized by GAAP as appropriate for
determining inventory cost?
21) Inventory must be recorded when
22) Canceling invoices with a paid stamp after payment is a
control that relates to which assertion?
23) Which is NOT a step in the search for unrecorded
24) Which control question relates to the existence and
occurrence objective in purchasing and accounts payable?
25) The audit objective that all transactions and
accounts that should be presented in the financial statements are included is
related to which assertion?
26) Which best describes the main reason independent
auditors report on management`s financial statements?
27) The audit objective that all footnotes have been
included in the financial statements is related most closely to which