Question 49 (2 points)

Listen What transaction cycle is the auditor auditing if he/she is analyzing the percentage change in the advertising, office expenses and repairs and maintenance accounts?

(2 marks)

Question 49 options:

Acquisitions and Payments Cycle

Revenue and Collections Cycle

Capital Acquisitions and Repayments Cycle

Human Resources and Payroll Cycle

Question 50 (2 points)

Listen An audit engagement provides positive assurance, a review engagement provides negative assurance, what type of assurance does a compilation engagement provide?

(2 marks)

Question 50 options:

No Assurance

Neutral Assurance

Some Assurance

Open Assurance

Question 51 (4 points)

Listen The auditor has gathered the following information to test the accuracy of the one prepared by the controller. In particular, the auditor is testing the accuracy of the outstanding cheques. Use the following information to prepare the bank reconciliation and calculate what the total of the outstanding cheques should be.

1. Cash balance - March 31 $39,500 2. Outstanding Deposits $13,810

3. NSF cheque from a customer $750 4. Bank Statement Balance - March 31 $127,100

5. The bank recorded a deposit as $10,000 when the deposit was actually $1,000

6. The bank credited the company's bank account with $3,900 of interest earned

7. The bank statement showed an EFT from a customer for $16,300

8. The bank charged a service charge of $45

9. The company posted cheque #1730 as $890 when the actual amount was properly debited by the bank for $980

Question 51 options:

Outstanding cheques = $76,995

Outstanding cheques = $56,795

Outstanding cheques = $82,095

Outstanding cheques = $73,095

Question 52 (1 point)

Listen Which one is the correct source document in the correct transaction cycle?

Question 52 options:

receiving slip in the capital acquisitions and repayment cycle

the purchase order in the human resources and payroll cycle

the vendor invoice in the acquisitions and payments cycle

the shipping slip in the revenue and collections cycle