ACCT 444 DeVry Entire Course

Question 10. Question : (TCO 9) A key internal control in the sales and collection cycle is the separation of
duties between cash handling and record keeping. The objective most directly associated with this control is to verify
that
cash receipts recorded in the cash receipts journal are reasonable.
cash receipts are properly classified.
recorded cash receipts result from legitimate transactions.
existing cash receipts are recorded.
ACCT 444 DeVry Week 6 Quiz Latest
Question 1. Question : (TCO 9) The exception rate the auditor will permit in the population and still be willing to
reduce the assessed level of control risk is called the
tolerable exception rate.
estimated population exception rate.
acceptable risk of overreliance.
sample exception rate.
Question 2. Question : (TCO 9) A sample in which every possible combination of items in the population has an
equal chance of constituting the sample is a
random sample.
statistical sample.
judgment sample.
representative sample.
Question 3. Question : (TCO 9) To determine if a sample is truly representative, an auditor must
conduct multiple samples of the same population.
never use sampling because of the expense involved.
audit the entire population.
perform none of the above.
Question 4. Question : (TCO 9) Cutoff misstatements can occur for
sales.
sales returns and allowances.
cash collections.
any of the above.
Question 5. Question : (TCO 9) Auditing standards require auditors to confirm accounts receivable with some
exceptions. Which of the following is not one of the exceptions allowed by auditing standards?
The accounts receivable balance is comprised of several very large customer balances.
Accounts receivable are immaterial.
Response rates are likely to be very low.
The combined level of inherent risk and control risk are low and other substantive evidence can be obtained.