What is the most likely opportunity for theft or fraud by employees?

Multiple Choice

• The belief that the theft is a common practice.
• Needlessly complex transactions.
• Access to assets that are easily traced.
• Stock options that expire soon after the release of financial statements.

What objectives of controls are of primary interest to an auditor performing a financial statement audit?

Multiple Choice

• Effective and efficient operations
• Accurate and reliable financial reporting
• Compliance with applicable laws and regulations
• Prevention or detection and timely correction of errors and fraud

Which of the following audit procedures is most likely to be conducted only after year-end?

Multiple Choice

• Evaluation of managements adjusting journal entries to the financial statements.
• Accounts receivable confirmations as evidence of existence and valuation of balance sheet accounts receivable balance.
• Testing of property, plant, and equipment disposals to validate balance sheet PP&E account.
• Analysis of stockholders equity transactions to validate balance sheet equity accounts.