Quiz
CPA Exam Sample Questions Pt. 2
Questions in this quiz (5)
1Which of the following is not a principal objective of the auditor in the examination of revenues?
- ATo verify cash deposited during the year.
- BTo evaluate internal control, with particular emphasis on the use of accrual accounting to record revenue.
- CTo verify that earned revenue has been recorded, and recorded revenue has been earned.
- DTo identify and interpret significant trends and variations in the amounts of various categories of revenue.
2Which of the following procedures would ordinarily be expected to best reveal unrecorded sales at the balance sheet date?
- ACompare shipping documents with sales records.
- BApply gross profit rates to inventory disposed of during the period.
- CTrace payments received subsequent to the balance sheet date.
- DSend accounts receivable confirmation requests.
- ACompare shipping documents with sales records.
3If accounts receivable turned over 7.1 times in 1979 as compared to only 5.6 times in 1980, it is possible that there were
- AUnrecorded credit sales in 1980.
- BUnrecorded cash receipts in 1979.
- CMore thorough credit investigations made by the company late in 1979.
- DFictitious sales in 1980.
4Lapping would most likely be detected by
- AExamination of canceled checks clearing in the bank cut-off period.
- BConfirming year-end bank balances.
- CPreparing a schedule of interbank transfers.
- DInvestigating responses to accounts receivable confirmations.
5When there are a large number of relatively small account balances, negative confirmation of A/R is feasible if I/C is
- AStrong, and the individuals receiving the confirmation requests are unlikely to give them adequate consideration.
- BWeak, and the individuals receiving the confirmation requests are likely to give them adequate consideration.
- CWeak, and the individuals receiving the confirmation requests are unlikely to give them adequate consideration
- DStrong, and the individuals receiving the confirmation requests are likely to give them adequate consideration.
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- Description
- Part 2 of my Audit Testing CPA Exam sample questions.
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- nedtuohy
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- English
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