You now need to gain an understanding of Cherry's non-current assets cycle.Which of the following statements is correct regarding audit procedures concerning the non-current asset cycle?
参考答案(由小熊题库网聘请的专业题库老师提供的解答)
请点击↑↑↑ 查看官方参考答案 按钮
习题解析
请点击 查看官方参考答案 按钮
您可能感兴趣的题目
1 .KLE Co's management is keen to increase the range of assignments that the company's internal audit undertake.Which of the following assignments could the internal audit department be asked to perform by management?
A Undertake 'mystery shopper' reviews, where they enter the store as a customer, purchase goods and rate the overall shopping experience B Assist the external auditors by requesting bank confirmation letters C Provide advice on the implementation of a new payroll package for the payroll department D...
2 .Which of the following best summarises the meaning of 'efficiency' in the context of a Value for Money audit as requested by KLE Co's management?
A The lowest cost at which the appropriate quantity and quality of physical, human and financial resources can be achieved B Producing the required goods and services in the shortest time possible C The extent to which an activity is achieving its policy objectives D The relationship between goods a...
3 .As part of audit planning, the audit team needs to obtain and understanding of the company's system of internal control. Peter, the audit junior, is unsure what a company's internal control comprises.Which of the following is NOT a component of an entity's internal control?
A The control environment B Control activities relevant to the audit C The selection and application of accounting policies D The information system relevant to financial reporting
4 .Which of the following are the most likely consequences of the internal control deficiency described in the requisition system for raw materials?(1) Fraudulent purchases may be made, leading to funds being diverted to third parties for illegal purposes(2) Stock-outs may occur, resulting in the company being unable to meet orders and lost revenue(3) Unnecessary purchases may be made, resulting in excess obsolescent raw materials accumulating in inventory requiring to be written down(4) Raw materials of poor quality may be purchased, resulting in low-quality products being produced, customer goodwill being lost and going concern risks
A 1 and 3 B 2 and 3 C 1 and 4 D 2 and 4
5 .While reviewing Cherry's purchases cycle, you identified that goods received notes for raw material purchases are not sequentially numbered.Which of the following areas would you consider to be most at risk of material misstatement, as a result of this internal control deficiency?
A Rights and obligations of inventory B Valuation of payables C Existence of inventory D Completeness of payables
7 .Cherry's internal audit department has provided you with details of the internal controls around the noncurrent assets cycle. The controls include the following:On receipt, each asset is assigned a unique serial number and this is recorded on the asset and in the non-current assets register.Which TWO of the following describe the MOST RELIABLE audit procedures which enable the auditor to assess whether this control is operating effectively?(1) Select a sample of capital additions on site, agree that a serial number is recorded on the asset and confirm it is included in the non-current assets register(2) Select a sample of assets recorded on the non-current assets register, confirm that it includes a serial number for each asset and agree the number to the physical asset(3) Inspect the non-current asset register and verify that there are no duplicated serial numbers(4) Observe the receipt of assets to confirm that serial numbers are assigned and recorded
A 1 and 3 B 2 and 3 C 1 and 4 D 2 and 4
8 .In relation to orders received through the website which of the following control objectives is met?
A Goods are sold to customers with good credit ratings. B The company is able to fulfil the orders. C Customers do not exceed credit limits. D Changes in customer data are authorised.
9 .Your audit junior has identified the following possible risks arising from the use of the printed order as a goods outward note and subsequent hand delivery to the invoicing department :(1) Orders are not fulfilled.(2) Goods are sent out but not invoiced.(3) Goods are invoiced but not sent out.(4) Wrong goods are sent to customers.Which of the above risks arise from the identified system deficiency?
A 1 and 2 B 2 and 3 C 2 and 4 D 1 and 3
10 .You are reviewing the audit plan for tests of controls over invoicing, which reads:(1) Observe the invoicing clerk to ensure that prices are checked to the official price list.(2) Review a sample of invoices to ensure their numerical sequence.(3) Review a sample of goods out notes to ensure they have been matched to sales invoices.(4) Review a sample of sales invoices to verify evidence that the calculations were checked before they were sent to customers.Which of the above procedures relate to the completeness assertion?
A 1 and 4 B 2 and 3 C 1 and 3 D 2 and 4
