A. Accounts payable Allowance for doubtful accounts B. Purchase returns and discounts C. D. Property, plant and equipment 20) It is possible to test the physical inventory prior to balance sheet date when A. There are deficiencies in the Company's inventory process B. Sales near year end are small C. All inventory is stored at a public warehouse There are accurate perpetual inventory master files D. 21) Professional standards require that the following items related to inventory (if mat disclosed on the face of the financial statements or in the footnotes to the financia I. The cost method used (LIFO, FIFO, weighted average cost) Il. The raw materials, work-in-process, and finished goods inventory balances III. The valuation method used (net realizable value or lower of cost or market) A. Ionly B. Il only C. Iand II D. I, Il and lI 22) Queen Marjorie, an auditor, is examining payroll transactions. She is primarily co possibility of A. Incorrect summaries of employee time records Overpayments and unauthorized payments B. C. Posting of gross payroll amounts to incorrect salary expense accounts D. Under withholding of amounts required to be withheld for taxes 23) Tyrell, an auditor, vouched data for a sample of employees in a payroll register t card data to provide assurance that: A. Segregation of duties exists between the preparation and distribution of pa B. Internal controls relating to unclaimed payroll checks are operating properl C. Employees work the number of hours for which they are paid D. Payments to employees are computed at authorized rates 24) According to ASC 820 (formerly FAS 157), the use of unobservable inputs such or discounted cash flow is an example of a level A. 1 B. 2 C. 3 D. 4 estimate 25) Which of the following is NOT an important control over notes payable? A. The client has proper documents and records B. There is proper authorization over the issuance of new notes payable C. Adequate controls exist over repayment of interest and principal D. Notes payable are issued when the business climate is favorable Page 5 of 10