ACC 492 Final Exam: Comprehensive Review of Auditing and Internal Control Concepts

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ACC 492 Final Exam: Comprehensive Review of Auditing and Internal ControlConcepts1. The cash disbursements journal also is called thea) Voucher register.b) Purchases journal.c) Check register.d) Accounts payable subsidiary ledger.2. Inassessing control risk for purchases, an auditor vouches a sample of entries in the voucherregister to the supporting documents. Which assertion would this test of controls most likelysupport?a) Completeness.b) Existence or occurrence.c) Valuation or allocation.d) Rights and obligations.3. An important purpose of the auditor’s review of the client’s procurement system should be todetermine the effectiveness of the procedures to protect againsta) Improper materials handling.b)Unauthorized persons issuing purchase orders.c) Mispostings of purchase returns.d) Excessive shrinkage or spoilage.4. A client erroneously recorded a large purchase twice. Which of the following internal controlmeasures would be most likely to detect this error in a timely and efficient manner?a) Footing the purchases journal.b) Reconciling vendors’ monthly statements with subsidiary payable ledger accounts.c) Tracing totals from the purchases journal to the ledger accounts.d) Sending written quarterly confirmation to all vendors.5. Which of the following departments most likely would approve changes in pay rates anddeductions from employee salaries?a) Personnel.b) Treasurer.c) Controller.d) Payroll.6. Possible misstatements related to the validity internal control objective for payroll transactionsinclude all of the following excepta) Payments to fictitious employees.b) Payments to terminated employees.c) Payments to valid employees who have not worked.d) Payment to valid employees at a rate in excess of the authorized amount.7. When examining payroll transactions, an auditor is primarily concerned with the possibility ofa) Posting of gross payroll amounts to incorrect salary expense accounts.b) Overpayments and unauthorized payments.c) Misfootings of employee time records.d) Excess withholding of amounts required to be withheld.8. An auditor vouched data for a sample of employees in a payroll register to approved clockcard data to provide assurance that

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