In performing risk assessment procedures for property, plant and equipment, an auditor may inquire of the client personnel which of the following questions?

a. Is depreciation calculation and recording automated?

b. Is there periodic physical count and tagging of property, plant and equipment? Is the result of the count reconciled to ledgers and general ledgers?

c. Both a and b.

d. Neither a nor b.

As part of your audit of the procurement system, you have recommended that the goods inwards department should ensure that the goods received are valid business purchases, by matching all deliveries to an authorised order form before issuing a GRN. Which of the following would be an appropriate test of control to confirm that the control is operating effectively?

Group of answer choices

a.For a sample of goods received notes check that there is an authorised purchase order

b.For a sample of orders, check that there is a matching goods received note

c.Check that the numerical sequence of goods received notes is complete

d.Check that the numerical sequence of purchase orders is complete

An auditor's tests of a client's cost accounting system are designed primarily to determine that

Group of answer choices

a.The system complies with generally accepted accounting principles and functions as planned.

b.Costs have been assigned properly to finished goods, work in process, and cost of goods sold.

c.Quantities on hand have been computed based on acceptable methods that reasonably approximate actual quantities on hand.

d.Physical inventories substantially agree with book inventories.

An internal control questionnaire indicates that an approved receiving report accompanies every check request. To test this control, an auditor could select and examine:

Group of answer choices

a.Receiving reports and determine that the selected canceled checks are dated no earlier that the receiving reports.

b.Canceled checks and determine that the related receiving reports are dated no earlier than the checks.

c.Canceled checks and determine that the related receiving reports are dated no later than the checks.

d.Receiving reports and determine that the related canceled checks are dated no later than receiving reports.

In performing risk assessment procedures for investments, an auditor may inquire of the client personnel which of the following questions?

Group of answer choices

a.Are investment records periodically reconciled to actual listing of investments (i.e., per count or investment custodian statement)?

b.All of the choices

c.Is investment income independently recalculated?

d.Is there independent review of investments measured at fair value based on market valuation?

An auditor's tests of a client's cost accounting system are designed primarily to determine that

Group of answer choices

a.The system complies with generally accepted accounting principles and functions as planned.

b.Costs have been assigned properly to finished goods, work in process, and cost of goods sold.

c.Quantities on hand have been computed based on acceptable methods that reasonably approximate actual quantities on hand.

d.Physical inventories substantially agree with book inventories.

In performing risk assessment procedures for investments, an auditor may inquire of the client personnel which of the following questions?

Group of answer choices

a.Are investment securities acquisitions and disposals properly authorized by the board of directors?

b.Is access to investment securities restricted to at least two authorized officials?

c.All of the choices.

d.Are the duties of authorization, custody, recording keeping and valuation of investment securities transactions segregated?

In performing risk assessment procedures for property, plant and equipment, an auditor may inquire of the client personnel which of the following questions?

Group of answer choices

a.Are disposals of property, plant and equipment properly authorized, removed from records including depreciation, and recorded in correct accounting period?

b.Are depreciation policies in accordance with applicable financial reporting framework?

c.Are all property, plant and equipment purchases, including finance leases, properly authorized, recorded in accordance with the capitalization threshold (e.g., P10,000) and in correct accounting period?

d.All of the choices.