This document provides sample exam questions for an accounting course (ACCT 555) covering various auditing topics such as evaluating internal controls, assessing audit risk, and issuing audit reports. It includes multiple choice and discussion questions about auditing standards, procedures, and ethical responsibilities.
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1.Developing an understanding of the client's business and industry is essential to proficiency as discussed in the general standards of GAAS. (Points: 4)
True
False
2. Ratio analysis only involves a year-to-year comparison of account balances. (Points: 4)
True
For more classes visit
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1.Developing an understanding of the client's business and industry is essential to proficiency as discussed in the general standards of GAAS. (Points: 4)
True
False
For more classes visit
www.snaptutorial.com
1.Developing an understanding of the client's business and industry is essential to proficiency as discussed in the general standards of GAAS. (Points: 4)
True
False
2. Ratio analysis only involves a year-to-year comparison of account balances. (Points: 4)
True
For more classes visit
www.snaptutorial.com
1.Developing an understanding of the client's business and industry is essential to proficiency as discussed in the general standards of GAAS. (Points: 4)
True
False
Week 5 Homework QuestionsQuestions 1 and 2 were taken directly f.docxco4spmeley
Week 5 Homework Questions
Questions 1 and 2 were taken directly from the text and I am aware that the answers are available through an internet search.
I want to remind you that searching the internet for the answers and using those answers is a violation of UMUC academic integrity policies.
In addition, using any outside source without citation is plagiarism.
However, just gaining access to the answers will not satisfy the homework assignment because I have added the requirement that you explain your answers, which cannot be found on the internet and needs to be reasoned out from the material in the chapter.
In grading, I will place more emphasis you explanation than your selection of the correct alternative.
1)
The following are several multiple choice questions adapted from the CPA exam that cover the concept and application of materiality.
For each question, selected the best answer and then explain why it is better than all the alternatives.
Your explanations should address all the possible alternatives presented in the question.
a)
Which one of the following statements is correct concerning the concept of materiality?
i)
Materiality is determined by reference to guidelines established by the AICPA.
ii)
Materiality depends only on the dollar amount of an item relative to other items in the financial statements.
iii)
Materiality depends on the nature of an item rather than the dollar amount.
iv)
Materiality is a matter of professional judgment.
Answer:
Explanation
:
b)
In considering materiality for planning purposes, an auditor believes that misstatements aggregating $10,000 will have a material effect on an entity's income statement, but that misstatements will have to aggregate $20,000 to materially affect the balance sheet.
Ordinarily, it is appropriate to design audit procedures that are expected to detect misstatements that aggregate to
i)
$10,000
ii)
$15,000
iii)
$20,000
iv)
$30,000
Answer:
Explanation
:
c)
A client decides not to record an auditor's proposed adjustments that collectively are not material and wants the auditor to issue the report based on the unadjusted numbers.
Which of the following statements is correct regarding the financial statement presentation?
i)
The financial statements are free from material misstatement, and no disclosure is required in the notes to the financial statements.
ii)
The financial statements do not conform with generally accepted accounting principles (GAAP).
iii)
The financial statements contain unadjusted misstatements that should result in a qualified opinion.
iv)
The financial statements are free from material misstatement, but disclosure of the proposed adjustment is required in the notes to the financial statements.
Answer:
Explanation
:
2)
The following are several multiple choice questions adapted from the CPA exam that cover audit risk.
For each question, selected the best answer and then explain why it is better than all the alternative.
ACC 675 Final Project Guidelines and Rubric Overvie.docxnettletondevon
ACC 675 Final Project Guidelines and Rubric
Overview
The final project for this course is the creation of a case study analysis. You will use the article The SOX Compliance Journey at Trinity Industries as a resource for
this project.
Companies today must ensure that operational processes are performing efficiently and effectively in compliance with current regulations. Accountants must
adhere to domestic standards set by organizations—such as the Public Company Accounting Oversight Board and the Financial Accounting and Standards
Board—as well as global standards, such as the International Financial Reporting Standards, requiring appropriate implementation and assessment of internal
controls. Whether developing appropriate processes internally or preparing substantive testing, external auditors must be able to quickly and completely assess
the financial processes, determine weaknesses, and provide recommendations for improvement.
The ability to transcribe formalized or narrative processes into functional workflows allows an auditor to identify potential gaps in accounting systems. These
gaps can result in material audit findings necessitating changes in the company’s control structure.
However, it is not only the process and flow of transactions that requires scrutiny. Companies evolve into sophisticated, computerized systems that require an in-
depth understanding of administrative rights, electronic process flows, and end user reporting.
In this case study, you will apply all of these skills in developing recommendations for Trinity Industries. Though the Sarbanes–Oxley Act of 2002 (SOX)
promulgated many internal control structure changes, the company is unsure as to whether they are applying too few or too many internal controls. Unnecessary
controls place added burden on staff and cost the company thousands of dollars in monitoring and maintenance.
Your role will be to provide an overview of the company and its market industry. From this you will formulate your processes into a comprehensive flowchart that
will be used to identify gaps in processes and other threats to potential audit weaknesses.
The project is divided into four milestones, which will be submitted at various points throughout the course to scaffold learning and ensure quality final
submissions. These milestones will be submitted in Modules Two, Four, Six, and Seven. The final product will be submitted in Module Nine.
In this assignment, you will demonstrate your mastery of the following course outcomes:
Transcribe formalized or verbal financial processes into both narrative and process flowcharts for identifying gaps resulting in potential material
weaknesses
Summarize advantages and disadvantages of various accounting electronic data processing systems with respect to a specific industry’s needs
http://ezproxy.snhu.edu/login?url=http://search.proquest.com/docview/963675948?accountid=3783
Perform substantive tes.
EXHIBIT 515 Payroll System FlowchartFollowing is a selec.pdfaccostinternational
EXHIBIT 5.15 Payroll System FlowchartFollowing is a selection of items from the payroll
processing internal control questionnaire in Exhibit 5.15. 1. Are names of terminated employees
reported in writing to the payroll department? 2. Are authorizations for deductions signed by the
employee on file? 3. Is there a timekeeping department (function) independent of the payroll
department? 4. Are timekeeping and cost accounting records (such as hours, dollars) reconciled
with payroll department calculations of hours and wages? Required: For each of the four
preceding questions a. Identify the assertion to which the question applies. b. Specify one test of
controls an auditor could use to determine whether the control was operating effectively. c.
Provide an example of an error or fraud that could occur if the control were absent or ineffective. d.
Identify a substantive auditing procedure that could detect errors or frauds that could result from
the absence or ineffectiveness of the control items..
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ACC 576 Final Exam Study
Question 1 (IFTC-0112)
Controls in the information technology area are classified into the preventive
FOR MORE CLASSES VISIT
www.acc576tutor.com
ACC 576 Final Exam Study
Question 1 (IFTC-0112)
Controls in the information technology area are classified into the preventive, detective, and corrective categories. Which of the following is a preventive control?
Question 2 (IFTC-0082)
An organization relied heavily on e-commerce for its transactions. Evidence of the organization’s security awareness manual would be an example of which of the following types of controls?
Question 3 (IFTC-0067)
Which of the following types of control plans is particular to a specific process or subsystem, rathe
For more course tutorials visit
www.newtonhelp.com
ACC 576 Final Exam Study
Question 1 (IFTC-0112)
Controls in the information technology area are classified into the preventive, detective, and corrective categories.
Week 5 Homework QuestionsQuestions 1 and 2 were taken directly f.docxco4spmeley
Week 5 Homework Questions
Questions 1 and 2 were taken directly from the text and I am aware that the answers are available through an internet search.
I want to remind you that searching the internet for the answers and using those answers is a violation of UMUC academic integrity policies.
In addition, using any outside source without citation is plagiarism.
However, just gaining access to the answers will not satisfy the homework assignment because I have added the requirement that you explain your answers, which cannot be found on the internet and needs to be reasoned out from the material in the chapter.
In grading, I will place more emphasis you explanation than your selection of the correct alternative.
1)
The following are several multiple choice questions adapted from the CPA exam that cover the concept and application of materiality.
For each question, selected the best answer and then explain why it is better than all the alternatives.
Your explanations should address all the possible alternatives presented in the question.
a)
Which one of the following statements is correct concerning the concept of materiality?
i)
Materiality is determined by reference to guidelines established by the AICPA.
ii)
Materiality depends only on the dollar amount of an item relative to other items in the financial statements.
iii)
Materiality depends on the nature of an item rather than the dollar amount.
iv)
Materiality is a matter of professional judgment.
Answer:
Explanation
:
b)
In considering materiality for planning purposes, an auditor believes that misstatements aggregating $10,000 will have a material effect on an entity's income statement, but that misstatements will have to aggregate $20,000 to materially affect the balance sheet.
Ordinarily, it is appropriate to design audit procedures that are expected to detect misstatements that aggregate to
i)
$10,000
ii)
$15,000
iii)
$20,000
iv)
$30,000
Answer:
Explanation
:
c)
A client decides not to record an auditor's proposed adjustments that collectively are not material and wants the auditor to issue the report based on the unadjusted numbers.
Which of the following statements is correct regarding the financial statement presentation?
i)
The financial statements are free from material misstatement, and no disclosure is required in the notes to the financial statements.
ii)
The financial statements do not conform with generally accepted accounting principles (GAAP).
iii)
The financial statements contain unadjusted misstatements that should result in a qualified opinion.
iv)
The financial statements are free from material misstatement, but disclosure of the proposed adjustment is required in the notes to the financial statements.
Answer:
Explanation
:
2)
The following are several multiple choice questions adapted from the CPA exam that cover audit risk.
For each question, selected the best answer and then explain why it is better than all the alternative.
ACC 675 Final Project Guidelines and Rubric Overvie.docxnettletondevon
ACC 675 Final Project Guidelines and Rubric
Overview
The final project for this course is the creation of a case study analysis. You will use the article The SOX Compliance Journey at Trinity Industries as a resource for
this project.
Companies today must ensure that operational processes are performing efficiently and effectively in compliance with current regulations. Accountants must
adhere to domestic standards set by organizations—such as the Public Company Accounting Oversight Board and the Financial Accounting and Standards
Board—as well as global standards, such as the International Financial Reporting Standards, requiring appropriate implementation and assessment of internal
controls. Whether developing appropriate processes internally or preparing substantive testing, external auditors must be able to quickly and completely assess
the financial processes, determine weaknesses, and provide recommendations for improvement.
The ability to transcribe formalized or narrative processes into functional workflows allows an auditor to identify potential gaps in accounting systems. These
gaps can result in material audit findings necessitating changes in the company’s control structure.
However, it is not only the process and flow of transactions that requires scrutiny. Companies evolve into sophisticated, computerized systems that require an in-
depth understanding of administrative rights, electronic process flows, and end user reporting.
In this case study, you will apply all of these skills in developing recommendations for Trinity Industries. Though the Sarbanes–Oxley Act of 2002 (SOX)
promulgated many internal control structure changes, the company is unsure as to whether they are applying too few or too many internal controls. Unnecessary
controls place added burden on staff and cost the company thousands of dollars in monitoring and maintenance.
Your role will be to provide an overview of the company and its market industry. From this you will formulate your processes into a comprehensive flowchart that
will be used to identify gaps in processes and other threats to potential audit weaknesses.
The project is divided into four milestones, which will be submitted at various points throughout the course to scaffold learning and ensure quality final
submissions. These milestones will be submitted in Modules Two, Four, Six, and Seven. The final product will be submitted in Module Nine.
In this assignment, you will demonstrate your mastery of the following course outcomes:
Transcribe formalized or verbal financial processes into both narrative and process flowcharts for identifying gaps resulting in potential material
weaknesses
Summarize advantages and disadvantages of various accounting electronic data processing systems with respect to a specific industry’s needs
http://ezproxy.snhu.edu/login?url=http://search.proquest.com/docview/963675948?accountid=3783
Perform substantive tes.
EXHIBIT 515 Payroll System FlowchartFollowing is a selec.pdfaccostinternational
EXHIBIT 5.15 Payroll System FlowchartFollowing is a selection of items from the payroll
processing internal control questionnaire in Exhibit 5.15. 1. Are names of terminated employees
reported in writing to the payroll department? 2. Are authorizations for deductions signed by the
employee on file? 3. Is there a timekeeping department (function) independent of the payroll
department? 4. Are timekeeping and cost accounting records (such as hours, dollars) reconciled
with payroll department calculations of hours and wages? Required: For each of the four
preceding questions a. Identify the assertion to which the question applies. b. Specify one test of
controls an auditor could use to determine whether the control was operating effectively. c.
Provide an example of an error or fraud that could occur if the control were absent or ineffective. d.
Identify a substantive auditing procedure that could detect errors or frauds that could result from
the absence or ineffectiveness of the control items..
FOR MORE CLASSES VISIT
www.acc576tutor.com
ACC 576 Final Exam Study
Question 1 (IFTC-0112)
Controls in the information technology area are classified into the preventive
FOR MORE CLASSES VISIT
www.acc576tutor.com
ACC 576 Final Exam Study
Question 1 (IFTC-0112)
Controls in the information technology area are classified into the preventive, detective, and corrective categories. Which of the following is a preventive control?
Question 2 (IFTC-0082)
An organization relied heavily on e-commerce for its transactions. Evidence of the organization’s security awareness manual would be an example of which of the following types of controls?
Question 3 (IFTC-0067)
Which of the following types of control plans is particular to a specific process or subsystem, rathe
For more course tutorials visit
www.newtonhelp.com
ACC 576 Final Exam Study
Question 1 (IFTC-0112)
Controls in the information technology area are classified into the preventive, detective, and corrective categories.
eco 372 week 2 knowledge check new,eco 372 week 2 team weekly reflection economic forecasting paper new,eco 372 week 2 individual assignment product purchases and the economy new,eco 372 week 2 assignment the real economy in the long run new,eco 372 week 2 principles of economics and the data of macroeconomics new,uop eco 372,eco 372,uop eco 372 week 2 tutorial,eco 372 week 2 assignment,uop eco 372 week 2 help
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Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
Palestine last event orientationfvgnh .pptxRaedMohamed3
An EFL lesson about the current events in Palestine. It is intended to be for intermediate students who wish to increase their listening skills through a short lesson in power point.
This is a presentation by Dada Robert in a Your Skill Boost masterclass organised by the Excellence Foundation for South Sudan (EFSS) on Saturday, the 25th and Sunday, the 26th of May 2024.
He discussed the concept of quality improvement, emphasizing its applicability to various aspects of life, including personal, project, and program improvements. He defined quality as doing the right thing at the right time in the right way to achieve the best possible results and discussed the concept of the "gap" between what we know and what we do, and how this gap represents the areas we need to improve. He explained the scientific approach to quality improvement, which involves systematic performance analysis, testing and learning, and implementing change ideas. He also highlighted the importance of client focus and a team approach to quality improvement.
Ethnobotany and Ethnopharmacology:
Ethnobotany in herbal drug evaluation,
Impact of Ethnobotany in traditional medicine,
New development in herbals,
Bio-prospecting tools for drug discovery,
Role of Ethnopharmacology in drug evaluation,
Reverse Pharmacology.
How to Split Bills in the Odoo 17 POS ModuleCeline George
Bills have a main role in point of sale procedure. It will help to track sales, handling payments and giving receipts to customers. Bill splitting also has an important role in POS. For example, If some friends come together for dinner and if they want to divide the bill then it is possible by POS bill splitting. This slide will show how to split bills in odoo 17 POS.
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
How to Create Map Views in the Odoo 17 ERPCeline George
The map views are useful for providing a geographical representation of data. They allow users to visualize and analyze the data in a more intuitive manner.
1.4 modern child centered education - mahatma gandhi-2.pptx
Devry acct-555-entire-course
1. DEVRY ACCT 555 Entire Course
Check this A+ tutorial guideline at
http://www.acct555entirecourse.com/acct-
555/acct-555-final-exam-new
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1. (TCO B) An auditor was unable to obtain
sufficient appropriate audit evidence
concerning certain transactions due to an
inadequacy in the entity's accounting records.
The auditor would choose between issuing
a(an): (Points : 5)
Question2. (TCO K) An auditor should consider
which of the following when evaluating the ability
of a company to continue as a going concern?
(Points : 5)
2. Question3. (TCO A) An auditor's independence is
considered impaired if the auditor has: (Points :
5)
Question4. (TCO H) Which of the following should
be included as a written representation from
management? (Points : 5)
Question 5. (TCO E) An auditor would most likely
be concerned with internal controls that provide
reasonable assurance about the: (Points : 5)
Question 1. (TCO A) In performing an ATTEST
Engagement A CPA would be required to do what
as part of the engagement? (Points : 19)
2. (TCO B) When a CPA performs an Audit the
Client is always looking to receive a “CLEAN
OPINION” or an Unqualified Opinion. Explain
what your client must do for a CPA to justify that
Unqualified Opinion? (Points : 19)
3. 3. (TCO C) - Based upon the below 4 situations
-explain your position of “why” or “why not” the
following circumstances would have violated the
professions ethical standards when you are a
practicing CPA?
4. (TCO D) Discuss five steps individual practicing
auditors can take to minimize their legal liability.
(Points : 19)
5. (TCO F) Sarbanes Oxley requires that per
Section 404 that Internal Controls within a
publicly held company are to be reviewed,
evaluated and tested at year end to insure that
adequate controls are in place. In addition to
understanding the Internal Controls present
within your client's company, the auditor must
also evaluate whether these controls are in place,
and implemented. How does an auditor evaluate
these controls to see that they are working and in
place?(Points : 19)
4. Question 1. (TCO E) What is COSO? Describe the 5
elements of COSO's Internal Control-Integrated
Framework. Provide an example of each of those
components and explain why they are important
in providing “Reliable Financial Reporting” for a
company. Please provide a complete answer for
full points. (Points : 30)
2. (TCO G) Business risk must be assessed in
performing an audit.
(a) Define business risk in association with an
audit and describe several sources of such risk.
(b) How does business risk relate to the
performance of preliminary analytical procedures
in an audit?
(c) There are four major areas in planning an audit
engagement and there are subparts to each of the
four major areas. Please identify the four major
areas and the subparts that are associated with the
major areas. (Points : 30)
(TCO H) Audit Risk consists of inherent risk,
control risk, and detection risk.
(a) Please completely define each of the
above.
5. (b) Indicate whether each of the statements below
is true or false and explain your position:
(1) The risk that material misstatement will not
be prevented or detected on a timely basis by
internal controls can be reduced to zero by
having
effective controls in place.
(2) Detection Risk is a function of the efficiency of
an auditing procedure.
(3) Cash is more susceptible to theft than an
inventory of coal because it has greater
inherent
risk?
(4) The Inherent risk of the theft of an inventory
of cellphones at a mall store is greater than
the misappropriation of cash at a COSTCO
Store?
(Points : 30)4. (TCO I) Accounts Receivable - For each of the
following, please explain if an auditor's review of
the client's sales cutoff would detect these
problems:
(a) Would excessive goods returned for credit
be detected by a sales cut-off test - why or why
not?
(b) Would unrecorded sales discounts be
detected
by a sales cut-off test - why or why not?
(c) Lapping of year-end accounts receivable be
detected by a sales cut-off test - why or why not?
6. (d) Inflated sales for the year - could it be detected
by a sales-cut-off test - why or why not? (Points :
30)
(TCO J) One of the major problems in a computer
system is that incompatible functions may be
performed by the same individual. Identify from
the below choices the control compensating for
inadequate segregation of duties in a computer
system. Explain why you have selected your
response.
(a) Echo Checks (b) A check digit system
(c) Computer-Generated hash totals
(d) A computer access log (Points : 30)
(TCO K) You are the Senior Auditor for WWZ Co.
and you have completed the testing of all the
accounts. However, prior to issuing your report,
what are at least five other procedures or
reviews that must be performed prior to issuing
your report? Explain your responses(Points : 30)
7. (d) Inflated sales for the year - could it be detected
by a sales-cut-off test - why or why not? (Points :
30)
(TCO J) One of the major problems in a computer
system is that incompatible functions may be
performed by the same individual. Identify from
the below choices the control compensating for
inadequate segregation of duties in a computer
system. Explain why you have selected your
response.
(a) Echo Checks (b) A check digit system
(c) Computer-Generated hash totals
(d) A computer access log (Points : 30)
(TCO K) You are the Senior Auditor for WWZ Co.
and you have completed the testing of all the
accounts. However, prior to issuing your report,
what are at least five other procedures or
reviews that must be performed prior to issuing
your report? Explain your responses(Points : 30)