Skip to content
Solved Assignments

ACC 599 Final Exam VERSIONS 1 & 2

A comprehensive final exam covering financial and managerial accounting.

Preview 4 of 13 pages

See the first 4 pages exactly as they appear in the document.

  1. Page 1
    Read page 1 as text

    ACC 599 FINAL EXAM VERSIONS 1 & 2 VERSIONS 1 Question 1 The first general standard of the PCAOB requires that an audit be performed by which type of person? Answer An auditor with seasoned judgment in varying degrees of supervision and review. An auditor with appropriate technical training and proficiency. An auditor with adequate knowledge of the standards of field work and reporting. An auditor satisfying the independence standards Question 2 Which assertion addresses whether all transactions and accounts that should be included in the financial statements are included? Answer Existence. Valuation. Completeness. Rights and Obligations Question 3 Which one of the following attributes is not required of an auditor? Answer Independence. Bias. Integrity. Technical competence Question 4 Which one of the following is a reporting standard requirement? Answer The auditor will state explicitly whether the financial statements are fairly presented in accordance with the applicable financial reporting framework. The auditor will identify in the auditor’s report, those circumstances in which auditing principles have not been consistently observed in the current period in comparison to the preceding period. The auditor will review adjusting journal entries for accuracy, and if the auditor concludes those entries are not reasonable accurate, the auditor must so state in the auditor’s report. The auditor will express an unqualified opinion on the financial statements, or will conduct additional audit procedures until such an opinion can be expressed Question 5 When obtaining an understanding of internal controls, what is the independent external auditor primary concerned with?

  2. Page 2
  3. Page 3
    Read page 3 as text

    Answer Detecting all errors Determining the effectiveness of operations Determining whether the internal controls can be relied upon Determining whether the controls promote efficiency Question 6 Which of the following is an inherent limitation of internal controls? Answer Lack of auditor independence Collusion Separation of duties Employee peer review Question 7 Which of the following is clearly a test of controls? Answer Walk - through of the expense cycle from performance of the service to the reporting in the balance sheet Examination of a sample of purchase order records for electronic, authenticated, authorization Observing the controller's use of company owned equipment Sending a letter to the client's attorney to determine litigation that is pending between plaintiff and the defendant Question 8 Which of the following is an example of a detective control in an information system? Answer Automated reports to management that specifically identify delinquent receivable A requirement that salaried employees submit written requests to work overtime Assurance from top management that computer centers are kept locked The employment of trustworthy people to enter data into the information system Question 9 Which of following is not part of the ethical framework derived from utilitarianism and rights theories? Answer Identification of the legal issues Determination of affected parties and their rights Determination of the most important rights Development of alternative courses of action Question 10 In determining the types of activities, engagements and interactions an auditor should have with a client, what must the CPA and the audit firm do? Answer

  4. Page 4
    Read page 4 as text

    Follow the rules exactly as they are written Assess all of their relationships with every client to ensure that independence is intact Focus on client satisfaction above all other considerations Realize that ethics are only guidelines and a matter of personal judgment Question 11 Which of the following is not an aspect of Rule 201 of the General Standards of the Code of Professional Conduct? Answer A member must not take on an engagement that is beyond the member's professional competence A member must exercise duties prudently and professionally A member must adequately plan and supervise the performance of professional services A member firm must not advertise services to competing clients Question 12 Which of the following represents a situation in which auditors may disclose client information to outside parties? Answer Bringing working papers to a professional CPA workshop as an example of quality work Complying with a validly issued and enforceable subpoena or summons Showing the client’s bank statement to a neighbor who is a shareholder to emphasize its cash position Explaining to the local television news station why the client is likely to miss payroll in the forthcoming periods Question 13 The significance of the bill of lading is to provide which of the following? Answer The warehouse personnel with the product that must be shipped to customers Invoices to customers for proper collection A credit application for customer approval Evidence of title transfer of goods to customers Question 14 A control that may be implemented to ensure all sales that occur are recorded in the general ledger includes which of the following? Answer Use of prenumbered shipping, invoice and sales documents Use of prenumbered statements, inventory lists and credit memos Reconciliation of invoices with customer statements Use of pre - authorized price lists Question 15

9 more pages in the full document

Unlock it once and it stays in your library, ready to chat with or turn into flashcards.

Unlock the full document

More Accounting study materials

See all

Study this document with CramX

Once it is in your library, every tool can work from it.