ACCT 444 DeVry Entire Course
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evenues.<br />
all of the above.<br />
Question 9. Question : (TCO 3) Which of the following is a factor that relates to incentives to misappropriate<br />
assets?<br />
Significant accounting estimates involving subjective judgments<br />
Significant personal financial obligations<br />
Management's practice of making overly aggressive forecasts<br />
High turnover of accounting, internal audit and information technology staff<br />
Question 10. Question : (TCO 3) Which of the following characteristics is most likely to heighten an auditor's<br />
concern about the risk of material misstatements, due to fraud in an entity's financial statements?<br />
Employees who handle cash receipts are not bonded.<br />
The entity's industry is experiencing declining customer demand.<br />
Internal auditors have direct access to the board of directors and the entity's management.<br />
The board of directors is active in overseeing the entity's financial reporting policies.<br />
<strong>ACCT</strong> <strong>444</strong> <strong>DeVry</strong> Week 3 Quiz Latest<br />
1. Question : (TCO 6) The distinction between physical examination of assets and examination of documents is<br />
dependent on the item being examined. If the object being examined has no inherent value, the evidence is called<br />
documentation.<br />
physical examination.<br />
confirmation.<br />
none of the above.<br />
Question 2. Question : (TCO 6) Analytical procedures are<br />
diagnostic tests of financial information that may not be classified as evidential matter.<br />
calculations of financial information made by a computer.<br />
substantive tests of financial information made by a study and comparison of relationships among data.<br />
statistical tests of financial information designed to identify areas requiring intensive investigation.<br />
Question 3. Question : (TCO 6) Which of the following statements regarding analytical procedures is not correct?<br />
The definition of analytical tests emphasizes a comparison of client's data to GAAP.<br />
Analytical procedures are required on all audits.<br />
Analytical procedures can be used as substantive tests.<br />
For certain accounts with small balances, analytical procedures alone may be sufficient evidence.<br />
Question 4. Question : (TCO 6) Which of the following statements about confirmation is true?<br />
Confirmations are expensive and so are often not used.<br />
Confirmations may inconvenience those asked to supply them, but they are widely used.<br />
Confirmations are sometimes not reliable and so auditors use them only as necessary.<br />
None of the above statements are true.