2) You are auditing the company's purchasing process for goods and services. You are primarily concerned with the company not recording all purchase transactions. Which audit procedure below would be the most effective audit procedure in this case?  
A) tracing vendor invoices to recorded amounts in the accounts payable account

B) confirmation accounts payable recorded amounts

C) reconciling the accounts payable subsidiary ledger to the accounts payable account

D) vouching from the accounts payable account to the vendor invoices

6) Which account is used in the current ratio but not the quick ratio?

A) accounts receivable   B) marketable securities

C) accounts payable   D) inventory

 

8) When allocating performance materiality,

A) it is easy to predict in advance which accounts are most likely to be misstated.

B) only overstatements need to be considered.

C) the sum of all the performance materiality levels cannot exceed the preliminary judgment about materiality.

D) professional judgment is critical.

11) Which is usually included in the engagement letter?

A)

The projected type of opinion on the financial statement to be audited	Name(s) of the client personnel responsible for supplying the auditor with information
No	Yes

 

B)

The projected type of opinion on the financial statement to be audited	Name(s) of the client personnel responsible for supplying the auditor with information
Yes	Yes

 

C)

The projected type of opinion on the financial statement to be audited	Name(s) of the client personnel responsible for supplying the auditor with information
Yes	No

 

D)

The projected type of opinion on the financial statement to be audited	Name(s) of the client personnel responsible for supplying the auditor with information
No	No