Audit

When there are numerous property and equipment transactions during the year, an auditor who plans to assess control risk at a low level usually performs:

Changes in capital stock accounts should normally be approved by

Which of the following is not a control that should be established for purchases of equipment?

Which of the following tests of controls most likely would help assure an auditor that goods shipped are properly billed?

Which of the following statements is correct regarding accounts payable and the auditor's procedures?

A continuing audit client's property, plant and equipment and accounts receivable accounts have approximately the same year-end balance. In this circumstance, when compared to property, plant and equipment one would normally expect the audit of accounts receivable to require:

Which of the following is not a test primarily used to test property, plant and equipment accounts for overstatement?

Which of the following best describes the auditors' approach to the audit of the ending balance of property, plant and equipment for a continuing nonpublic client?

In which of the following accounts would one expect a related party transaction to be easiest to detect?

Which of the following is used to obtain evidence that the client's equipment accounts are not understated?

A plant manager would be most likely to provide information on which of the following?

The auditors may expect a proper debit to goodwill due to:

The confirmation of accounts payable is most closely associated with

In the examination of property, plant, and equipment, the auditor tries to determine all of the following except the:

A likely analytical procedure to test the accuracy of purchase discounts would be to compute the ratio of cash discounts earned to

Which of the following best describes the specific accounts payable that are selected for confirmation?

The most likely technique for the current year audit of goodwill which was acquired three years ago by a continuing audit client

When an auditor finds a debit to accounts payable, which of the following accounts is most likely to be credited?

Property acquisitions that are misclassified as maintenance expense would most likely be detected by an internal control system that provides for

Which of the following best describes the auditors' typical observation of plant and equipment?

Which of the following assertions is of principle concern to the auditors in the examination of accounts payable?

In violation of company policy, Lowell Company erroneously capitalized the cost of painting its warehouse. The auditors examining Lowell's financial statements would most likely detect this when

For which of the following ledger accounts would the auditor be most likely to analyze the details to identify understatements of equipment acquisitions?

The auditors are least likely to learn of retirements of equipment through which of the following?

An entity's internal control requires for every check request that there be an approved voucher, supported by a prenumbered purchase order, and a prenumbered receiving report. To determine whether checks are being issued for unauthorized expenditures, an auditor most likely would select for testing from the population of:

Auditors may choose not to confirm accounts payable because:

Which of the following audit procedures is best for identifying unrecorded trade accounts payable?

For audit purposes, a corporation's articles of incorporation are normally

In testing for unrecorded retirements of equipment, an auditor might

The assertion most directly addressed when performing the search for unrecorded liabilities is:

Which of the following best describes the auditors' approach to the audit of accrued liabilities?

Which of the following best describes the independent auditors' approach to obtaining satisfaction concerning depreciation expense in the income statement?

Which of the following would be least likely to address control over the initiation and execution of equipment transactions?

Which of the following manipulations would understate accounts payable on the financial statements?

Which of the following is a customary audit procedure for the verification of the legal ownership of real property?

A client recorded a payable for a large purchase twice. Which of the following controls would be most likely to detect this error in a timely and efficient manner?

For a large publicly traded client the auditors' examination of capital stock accounts will not normally include:

An auditor has identified numerous debits to accumulated depreciation of equipment. Which of the following is most likely?

When performing an audit of the property, plant and equipment accounts, an auditor should expect which of the following to be most likely to indicate a departure from generally accepted accounting principles?

When comparing an initial audit with a subsequent year audit for a particular client, the scope of audit procedures for which of the following accounts would be expected to decrease the most?

Which of the following is an example of an accrued liability?

The audit approach for acquired treasury stock will normally include:

Which of the following is not one of the auditors' objectives in auditing depreciation?

Which of the following best describes a voucher prepared under good internal control?

Which statement is correct with respect to accounts payable confirmations?

For which of the following accounts is it most likely that most of the audit work can be performed in advance of the balance sheet date?

Which of the following audit procedures is aimed most directly at testing the completeness assertion for accounts payable

Which of the following is the best evidence of continuous ownership of property?

An auditor wishes to perform tests of controls on a client's cash disbursements relating to accounts payable. If the control procedures leave no audit trail of documentary evidence, the auditor most likely will test the procedures by

Which of the following is the most important control procedure over acquisitions of property, plant, and equipment?