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Question 1 (1 point} A substantive audit procedure for verifying accounts payable should include tracing the opening balance to the previous year's working papers. Question 2 (1 point} Controls over the preparation and signing of cheques include all of the following except 0 the cheque requisition and supporting documents should be cancelled (stamped) when the cheque is signed. 0 all cheques should be prenumbered and accounted for. 0 only authorized signing officers should be responsible for signing the cheques. O the signed cheque and the supporting documents should be returned to the accounts payable clerk for review and mailing. Question 10 [1 point) Which of the following audit procedures is best for identifying unrecorded trade accounts payable? 0 Reviewing cash disbursements recorded subsequent to the balance sheet date to determine whether the related payables apply to the prior period 0 Investigating payables recorded just prior to and just subsequent to the balance sheet date to determine whether they are supported by receiving reports 0 Reconciling vendors' statements to the file of receiving reports to identify items received just prior to the balance sheet date 0 Examining unusual relationships between monthly accounts payable balances and recorded cash payments Question 3 (1 point) The specific audit objective "accounts payable are liabilities of the entity at the balance date" is derived from the: O rights and obligations assertion. O presentation assertion. O valuation assertion. O completeness assertion.Question 4 (1 point) In witnessing a payroll distribution, the auditor would not be expected to observe that 0 there is proper control and disposal of unclaimed cheques. O the correct payroll entries are made in the rm's ledger and journal 0 each employee receives only one cheque or pay envelope. 0 the segregation of duties exist between the preparation and payment of payroll. Question 5 (1 point) Responsibility for updating of the personnel data master file should rest with authorized employees in the payroll department. O controller's department. personnel department. employee's operating department.Question 6 (1 point] On delivery of the goods to stores or other requisitioning departments, receiving clerks should obtain 0 an authority for receiving report retained by the receiving department. 0 a copy of the receiving report retained by the receiving department. 0 an original copy of the receiving report released by the receiving department. 0 a signed receipt on the copy of the receiving report retained by the receiving department. Question 7 (1 point) A responsibility not normally assigned to receiving department personnel is to 0 file the purchase order copy pending arrival of goods. 0 compare goods received with description of goods ordered. 0 approve supplier invoice for payment. prepare a brenumbered receivino report for everv order received. Question 8 (1 point) The receiving department should be instructed to accept no goods without having on file a properly authorized O receiving report. O invoice. purchase order. O purchase requisition.Question 9 (1 point) A payroll report that lists all employees who worked more than 50 hours during the week for review is an example of a 0 sequence test. 0 reasonableness test. 0 validity test. 0 self-checking test. Question 1 (1 point) The timing of audit testing refers to the stage of the audit when procedures are performed and the date that audit evidence relates to. Question 2 (1 point) Sampling is not required when 0 the client requests the auditor not to collect samples of certain transactions. 0 it is the rst year that the auditor has done the audit for a client. 0 an audit procedure is conducted on an entire group of transactions. 0 the auditor is conducting tests of controls. Question 3 (1 point) Tolerable error is the minimum error an auditor is willing to accept within the population tested. Question 4 (1 point) Daniel Beauchamp did not perform a true sample when he went to his client to examine sales invoices. He did not use any specific method for choosing the invoices. He quickly chose a few items he thought might make up his sample. What technique did he use? 0 haphazard selection 0 block selection 0 random selection 0 stratified sample selection Question 5 (1 point) From a random sample of items listed from a client's inventory count, a public accountant estimates that the sample error rate is between 4 and 6 %. The accountant's major concern is that the true deviation rate in the population is: 0 More than 6%. 0 Less than 6%. 0 More than 4%. 0 Less than 4%. Question 6 (1 point} Which of the following statements regarding statistical sampling is correct? 0 It involves haphazard selection. 0 I Q It involves random selection. 0 It is easier to use than non-statistical sampling. Question 7 (1 point] From prior experience, a public accountant is aware that cash disbursements contain a few unusually large disbursements. In using statistical sampling, the public accou ntant?s best course of action is to: 0 Increase the sample size to lessen the effect of the unusually large disbursements. 0 Eliminate any unusually large disbursements that appear in the sample. 0 Continue to draw new samples until no unusually large disbursements appear in the sample. 0 Stratify the cash disbursements population so that the unusually large disbursements are examined separately. Question 8 (1 point) When testing controls, the tolerable error is O the minimum rate of deviation that an auditor will accept. O the tolerable rate of deviation that an auditor will accept before concluding that a control is effective. 0 the tolerable rate of deviation that an auditor will accept before concluding that a control is ineffective. the maximum amount of error in an account balance that an auditor will accept before concluding that an account is materially misstated. Question 9 (1 point) Judgemental selection allows the auditor to apply their experience and professional judgment to identify specific items for audit verification. In the year end audit of Accounts Receivable, which of the following items would NOT be selected by the auditor for specific examination? 0 Current AR balances 0 Outstanding AR greater than 50% of specific materiality for AR. 0 AR from related parties 0 Accounts outstanding for more than 90 days. Question 10 [1 point] Which of the following is not an advantage of non-statistical sampling? 0 It is lower cost than statistical sampling. 0 It allows an auditor to select a sample that theyr believe is appropriate. 0 It requires less staff training. 0 It allows an auditor to measure sampling risk