Site MapHelpFeedbackOnline Quizzes
Online Quizzes
(See related pages)



1

Which of the following is not a responsibility of the receiving department?
A)Preparing a receiving report.
B)Counting the number of goods received.
C)Preparing a purchase invoice.
D)Checking the goods received for quality.
2

Which of the following best describes a voucher?
A)A document prepared by Purchasing that indicates the amount to be purchased.
B)A document prepared by Receiving that indicates the quantity received and approves payment.
C)A document prepared by Accounts Payable authorizing a cash disbursement.
D)A document received by Purchasing from a supplier, indicating quantity of goods purchased and amount due.
3

Which of the following procedures is least likely to alert the auditors to unrecorded accounts payable?
A)Confirmation of accrued liabilities.
B)Reconcile recorded liabilities with monthly statements from creditors.
C)Examine disbursement transactions recorded following year-end.
D)Analytical procedures involving year-end accounts payable.
4

Which of the following best explains why accounts payable confirmation procedures are not always used?
A)Inclusion of representations on accounts payable in the client representation letter eliminates the need in most situations.
B)Accounts payable generally are immaterial and may be audited through using analytical procedures.
C)Creditors will press for payment when they receive the confirmation.
D)Confirmations are better at identifying overstatements than understatements, and overstatements are not typically the major concern with accounts payable.
5

In examining liabilities of a company, what is the auditors' primary concern?
A)Completeness.
B)Presentation.
C)Rights.
D)Valuation.
6

For which of the following transactions would an auditor most likely propose an adjustment to the financial statements?
A)Inventory is included on the balance sheet at year-end, but the check for payment has not been paid until January 12.
B)An order for office supplies that has not been recorded because the goods have neither been received nor paid for by year-end.
C)Purchase of $5,000 of office furniture that was ordered on December 22 with a $1,000 deposit being made with an entry debiting "deposit on furniture" for $1,000 and a credit to cash for $1,000. The office furniture was received on January 5.
D)Shop supplies are included on the balance sheet at year-end, but the payable and subsequent cash disbursements are not recorded until after year-end.
7

Which of the following audit procedures is least likely to detect an unrecorded liability?
A)Analysis and recomputation of interest expense.
B)Analysis and recompilation of depreciation expense.
C)Confirmation of accounts payable.
D)Reading the minutes of meetings of the board of directors.
8

Which of the following is most likely to be included in the auditors' search for unrecorded accounts payable?
A)Examine invoices received and recorded prior to year-end.
B)Examine unmatched sales orders issued prior to year-end.
C)Examine vouchers payable entered into the voucher register subsequent to the balance sheet date.
D)Examine shipping reports for items shipped to customers recorded subsequent to the balance sheet date.
9

The auditors' verification of rapidly changing payable accounts is ordinarily most effective when performed
A)Before the balance sheet date.
B)At the balance sheet date in conjunction with inventory cutoff tests.
C)After the balance sheet date.
D)Simultaneously with the audit of accrued liabilities.
10

Accrued liabilities generally differ from accounts payable in that accrued liabilities:
A)Accumulate over time.
B)Are usually confirmed at year-end.
C)Can be found by a review of unpaid invoices.
D)Are never included in cost of goods sold.
11

Which of the following best describes the auditors' approach to the audit of accrued liabilities?
A)Confirmation.
B)Observation.
C)Plan a low assessed level of control risk.
D)Test computations.





To learn more about the book this website supports, please visit its Information Center.
(c)2006 McGraw-Hill Higher Education
Any use is subject to the Terms of Use and Privacy Policy.
McGraw-Hill Higher Education is one of the many fine businesses of The McGraw-Hill Companies.


Principles of AuditingOnline Learning Center

Home > Chapter 14 > Online Quizzes