QUESTION 44

1. An auditor traces a sample of electronic time cards before and after the bi-weekly payroll report and then traces to the payroll master file to determine that payroll transactions are reported in the correct period. The auditor is gathering evidence for which audit objective?

   	a.	completeness
   	b.	existence
   	c.	cut-off
   	d.	accuracy

2 points

QUESTION 45

1. In evaluating appropriateness of accrual balances for sick pay, vacation and other payments, an effective data point to analyze would be?

   	a.	expenses incurred in relation to accruals for the period.
   	b.	consistent accrual of liabilities relative to those of preceding periods.
   	c.	amount expenses in the current period.
   	d.	all data points above should be analyzed.

2 points

QUESTION 46

1. In the flow of inventory and costs, when finished goods is debited, ________ is (are) credited.

   	a.	raw materials
   	b.	cost of goods sold
   	c.	finished goods
   	d.	Work-in-process

2 points

QUESTION 47

1. True of False - Handling the receipt of ordered goods is a part of the acquisition and payment cycle.

   	a.	True
   	b.	False

2 points

QUESTION 48

1. A major difficulty in the verification of inventory cost records for the purpose of inventory valuation is in determining the reasonableness of the

   	a.	direct labor costs.
   	b.	raw material costs.
   	c.	manufacturing overhead costs.
   	d.	period costs.

2 points

QUESTION 49

1. An Auditor wants to verify that all manufacturing company's finished goods merchandise was included in ending inventory balance. The best audit procedure would be for the auditor to test the

   	a.	terms of non-closed purchase orders.
   	b.	cutoff procedures over purchases.
   	c.	contractual commitments made by the purchasing department.
   	d.	year-end purchase invoices received.