9. Transactions involving purchase orders being received from other companies should be reconciled by comparing the ______________________ with the accounts receivable ledger accounts. 10. In auditing inventories, finished goods, raw materials, and ___________________ must be included. 11. In an audit, one way to verify rental revenue owned by the client is to ___________________________________________________________________________. 12. The role of depreciation expense is to a the annual cost of the asset. 13. Evidence of property ownership is best obtained __________________________________. 14. To verify the account Appropriation of Retained Earnings For Plant Expansion, an auditor would look to the __________________________________________________________. 15. Authorization of long-term debt is by the _____________________________________. 16. An independent bond trustee is responsible for ___________________________________________________________________________. 17. A company that manages the roll of shareholder of record is called______________________________________________________________________. 18. & 19. Using Figure 9.4 with a 5% risk of assessing control risk too low, assume that auditors expect the deviation rate in the population to be 1%, and a 7% tolerable deviation rate to justify their planned assessed level of control risk related to this control. Under these assumptions, the sample size would be __________ which must contain no more than ________ control deviations. 20. Based on the question above, instead three (3) deviations are found in the sample.Using Figure 9.5 the tolerable deviation rate would be increased to ________ percent.

II. Completion - There are a series of statements below that have blank spaces. Please fill in the blank space with the word or words that complete the statement, so that each is correct. (20 blanks, 1 point each, 20 points total). 1. A comfort letter is a letter to the regarding compliance with the Securities Act of 1933. 2. Personal financial statements do not include an Income Statement. Instead they include a 3. The SSARS include guidance for these types of engagements including preparation of financial statements, reviews, and 4. The Management's Discussion & Analysis (MD&A) is a specialized report sent to the 5. An audit of "agreed upon procedures" may be used by any third party. 6. ABC Corp, has a 10% interest in the capital stock of XYZ Corp. On Jan. 15, 202X, the Board of Directors of XYZ Corp. declared a $1 per share cash dividend on its common stock. To verify the proper recording of this transaction compare the with the cash receipts journal. 7. The Simon Co. wants to improve efficiency. The Sales Manager suggests that his sales personnel have sufficient time to handle sales to customers, and also handle sales returns & allowances. If you were the auditor, this would be viewed as an example of 8. When an auditor requests that a customer of his client ought to confirm the amount of accounts receivable duc his client, this is an example of a confirmation. 9. Transactions involving purchase orders being received from other companies should be reconciled by comparing the with the accounts receivable ledger accounts. 10. In auditing inventories, finished goods, raw materials, and must be included. 11. In an audit, one way to verify rental revenue owned by the client is to 12. The role of depreciation expense is to a the annual cost of the asset. 13. Evidence of property ownership is best obtained 14. To verify the account Appropriation of Retained Earnings For Plant Expansion", an auditor would look to the 15. Authorization of long-term debt is by the 16. An independent bond trustee is responsible for 17. A company that manages the roll of shareholder of record is called 18. & 19. Using Figure 9.4 with a 5% risk of assessing control risk too low, assume that auditors expect the deviation rate in the population to be 1%, and a 7% tolerable deviation rate to justify their planned assessed level of coltrol risk related to this control. Under these assumptions, the sample size would be which must contain no more than control deviations 20. Based on the question above, instead three (3) deviations are found in the sample.Using Figure 9.5 the tolerable deviation rate would be increased to percent