For audit purposes, subsequent events are defined as events that occur ________.

Select one:

a. after the date of the audit report and concern contingencies that are not reflected in the financial statements.

b. after the date of the audit report.

c. any time after balance sheet date.

d. after the balance sheet date but prior to the date of the audit report.

You are using analytical procedures to verify direct labour costs. Which of these information sources would be considered the least reliable to use to establish an expected amount?

Select one:

a. Industry averages obtained directly from a verified government website.

b. Budgeted direct labour hours from the master budget, which was approved by the Board of Directors.

c. The production manager's personal forecast of annual production hours.

d. Prior year's average monthly production hours, obtained from the prior-year audit working papers.

Which of the following situations indicates a potential material weakness in internal control over acquisitions and expenditures?

Select one:

a. The person who approves purchases also signs the cheques.

b. Unacceptable goods are not recorded on receiving reports.

c. Purchase orders are not prepared for services that are acquired directly under authorization of department heads.

d. The person who signs the cheques also stamps "paid" on the vouchers

When an employee wrongfully includes non-business related expenses in their employee expense report, this is known as ________.

Select one:

a. white-collar crime.

b. employee fraud.

c. embezzlement.

d. an irregularity