This document provides an overview of the ACCT 555 Week 7 Homework Assignment, including sample questions covering topics like internal controls, auditing procedures, and potential financial misstatements. Specifically, it addresses controls over payroll, approval of time records, separation of duties for hiring and payroll, tests of controls vs substantive tests, controls over inventory purchases, cost accounting records, physical inventory counts, purposes of internal controls, tests of control effectiveness, potential misstatement risks, and substantive audit procedures. The document directs the student to an online tutorial for guidance on the assignment and notes that additional classes are available on the same website.

1. DEVRY ACCT 555 Week 7 Homework Assignment
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20-17
a.A factory foreman at Steblecki Corporation
discharged an hourly worker but did not notify the
human resources department. The foreman then
forged the worker's signature on time cards and
work tickets and, when giving out the checks,
diverted the payroll checks drawn from the
discharged worker to his own use. The most
effective procedure for preventing this activity is
to

2. An auditor found that employee time records in
one department are not properly approved by
the supervisor. Which of the following could
result?
The purpose of segregating the duties of hiring
personnel and distributing payroll checks is to
separate the
20-20
Identify whether each of the procedures is
primarily a test of control or a substantive test of
transactions.
Identify the transaction-related audit
objective(s)
of each of the procedures
21-17
Which of the following controls will most likely
justify a reduced assessed level of control risk for
the occurrence assertion for purchases of
inventory?

3. 21-18
When an auditor tests a client's cost accounting
records, the auditor's tests are primarily
designed
to determine that
21-19
Which of the following procedures is the auditor
least likely to perform on the actual date the
physical inventory count is observed?
21-20
For each of the preceding questions, state the
purpose of the internal control.
For each internal control, list a test of control to
test its effectiveness.
For each of the preceding questions, identify the
nature of the potential financial misstatement(s) if
the control is not in effect.
For each of the potential misstatements in part c,

4. list a substantive audit procedure to determine
whether a material misstatement exists
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