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• Question 2 Effective internal control over the payroll function would
include which of the following?
• Question 3 One of the auditor’s objectives in observing the actual
distribution of payroll checks is to determine that every name on the
payroll is that of a bona fide employee. The payroll observation is an
auditing procedure that is generally performed for which of the
following reasons?
• Question 4 A large retail enterprise has established a policy which
requires that the paymaster deliver all unclaimed payroll checks to the
internal auditing department at the end of each payroll distribution
day. This policy was most likely adopted in order to
• Question 5 In the audit of which of the following types of profit-
oriented enterprises would the auditor be most likely to place special
emphasis on testing the controls over proper classification of payroll
transactions?
• Question 6 The reliance placed on substantive tests in relation to the
reliance placed on internal control varies in a relationship that is
ordinarily
• Question 7 An auditor uses the assessed level of the risk of material
misstatement to
• Question 8 The purpose of segregating the duties of hiring personnel
and distributing payroll checks is to separate the
• Question 9 An audit client failed to maintain copies of its procedures
manuals and organizational flowcharts. What should the auditor do in
an audit of financial statements?
• Question 10 As a result of tests of controls, an auditor assesses
control risk too high. This incorrect assessment most likely occurred
because
• Question 11 To provide assurance that each voucher is submitted
and paid only once, an auditor most likely would examine a sample of
paid vouchers and determine whether each voucher is
• Question 12 A client erroneously recorded a large purchase twice.
Which of the following controls would be most likely to detect this
error in a timely and efficient manner?