ACC 562 Entire Course New

STRAYER ACC 562 Final Exam Guide NEW

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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
False

3. Control is considered to be part of corporate governance. (Points: 4)
True
False

4. When control risk is assessed at a maximum level, the auditor assumes that the internal controls are reliable in preventing or detecting material misstatements. (Points: 4)
True
False

5. Accounting subsystems are accounting cycles composed of one or more accounting applications. (Points: 4)
True
False

6. Presentation and disclosure assertions imply that all transactions and balances are properly presented, disclosures represent what actually happened, and the footnote disclosures are appropriate and adequate. (Points: 4)
True
False

7. Vouching recorded transactions involves taking a sample from the journal and tracing them back to the source documents to ensure they occurred. (Points: 4)
True
False

8. Audit documentation serves as support for the financial statements. (Points: 4)
True
False

9. In analysis of the results of audit sampling, an auditor may determine that the sample size must be increased. (Points: 4)
True
False

10. The revenue cycle considered by auditors includes the sales process but not collections. (Points: 4)
True
False

11. Inventory is complex and typically considered a high-risk area in audits of service firms. (Points: 4)
True
False

12. An auditor can utilize a cross-sectional analysis for a client operating in multiple locations to identify areas of further inventory testing. (Points: 4)
True
False

13. Legal expenses are reviewed by auditors for possible litigation and related FAS 5 treatment. (Points: 4)
True
False

14. An imprest payroll account will never reach a zero balance. (Points: 4)
True
False

15. A turnaround document is an effective completeness control because they list essential information for further processing of the collection on account. (Points: 4)
True
False

16. Auditors will perform an analysis of leases using SFAS 13 criteria and other EITF statements to substantiate the accounting treatment. (Points: 4)
True
False