I need answers to these multiple choice questions:

1

Which of these tests would be the least useful when using analytical procedures on expenses?

Comparing relationships between related expenses.

Comparing total expenses to the bank balance at balance date.

Comparing current year amounts as a percentage of sales with prior year.

Comparing prior year amounts with current year amounts.

2

Analytical procedures are not widely used in the audit of property, plant, and equipment. Which of the following is not a valid comment about the use of analytical procedures in the audit of PPE?

compare the annual depreciation charge with the cost of an asset to approximate the depreciation rate

a substantial asset balance variation can be caused by one or a few transactions of which the auditor is likely to already be aware

comparison of repairs expense with prior years may indicate capitalization in error

None of the above is invalid.

3

The auditor is least likely to discover unrecorded retirements of property, plant, and equipment assets by

analyzing the miscellaneous revenue account.

investigating the disposition of facilities associated with discontinued product lines.

reviewing insurance policies for termination or reductions of coverage.

selecting retirement work orders from the accounting records and verifying their accuracy.

4

Observation of inventory counts is a required audit procedure whenever

inventories are material.

it is practicable to do so.

inventories are material and the auditor considers it to be necessary.

inventories are material and it is practicable to do so.

5

Confirmation of inventories in public warehouses cannot provide evidence concerning the

it cannot provide evidence concerning any of the listed assertions.

completeness assertion.

existence assertion.

accuracy, valuation, and allocation assertion.

6

Which statement is most correct?

In observing physical inventory, the auditor has no responsibility to take or supervise the taking of inventory.

In observing physical inventory, the auditor has a responsibility to both take and supervise the taking of inventory.

In observing physical inventory, the auditor is only responsible for supervising the taking of inventory.

In observing physical inventory, the auditor is responsible for the taking of inventory.

7

Which of these is not a specific audit objective for sales and receivables?

completeness

existence or occurrence

representation

presentation

8

Which assertion category does the following audit objective relate to? "Accounts receivable include all claims on customers at the balance sheet date."

completeness

valuation

disclosure

rights and obligations

9.

Verifying the accuracy of the accounts receivable trial balance relates to the

accuracy, valuation, and allocation assertion.

existence or occurrence assertion.

completeness assertion.

rights and obligations assertion.

10.

In a credit sales environment, the document that usually initiates the activity in the sales cycle is

sales order.

sales invoice.

dispatch note.

customer order.

11.

A data analytic performed to understand past data is called a

prescriptive analytic.

diagnostic analytic.

descriptive analytic.

predictive analytic.

12

Which of the following accurately describes audit data analytics?

examination of small datasets to identify patterns, trends, and outliers

method of expanding audit testing to guarantee financial statements are properly presented

examination of large datasets to identify patterns, trends, and outliers

use of manual techniques to examine large datasets to gather audit evidence

13

Ying Ye believes that she will have to employ sophisticated substantive audit procedures for her client. What contributes to this decision?

The nature of the client's accounting system

The availability of an internal auditor to assist in the testing

The complexity of the client's data-capturing systems

None of the above

14

Inherent risk is

the risk of a misstatement occurring irrespective of any internal controls put in place by management.

assessed as low when there are good internal controls in place.

the risk that the auditor's testing procedures will not detect a material misstatement.

assessed as high when there are no internal controls tested or relied upon by the auditor.

15

Which of the following statements is correct?

There is no relation between the auditor's assessed risk of material misstatement and detection risk.

There is an inverse relation between the auditor's assessed risk of material misstatement and detection risk.

If detection risk is low, significant substantive procedures are necessary to reduce the detection risk.

If detection risk is high, few substantive procedures are necessary to reduce the detection risk.

16

The purpose of substantive procedures includes obtaining direct evidence as to

the reasonableness of the estimates and other information in the financial statements.

the completeness, accuracy, and validity of data.

the reasonableness of the estimates and other information in the financial statements and the completeness, accuracy, and validity of data.

none of the above.

17

Substantive testing can be conducted using which of the following procedures?

inquiry

confirmation

analytical review

all of the above

18

Which of the following factors do not influence the extent and timing of substantive procedures to be undertaken?

The level of assistance received from the internal auditor who responds directly to management

Complexity of the audit client's data-capturing system

The nature of the procedures

The audit risk assessment

19

Olaf Kuzino is trying to determine the extent of testing his team will have to perform in order to determine whether controls are working. How will he decide how much testing to perform?

He will utilize statistical sampling.

He will use his professional judgement.

He will use last year's results as a basis for this year's tests.

None of the above.