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• Question 36 Which one of the following would the auditor consider
to be an incompatible operation if the cashier receives remittances
from the mailroom?
• Question 37 An auditor’s tests of controls for completeness for the
revenue cycle usually include determining whether
• Question 38 An auditor reviews a client’s accounting policies and
procedures when considering which of the following planning
matters?
• Question 39 An entity with a large volume of customer remittances
by mail could most likely reduce the risk of employee misappropriation
of cash by using
• Question 40 An auditor has identified the controller's review of the
bank reconciliation as a control to test. In connection with this test, the
auditor interviews the controller to understand the specific data
reviewed on the reconciliation. In addition, the auditor verifies that the
bank reconciliation is properly prepared by the accountant and
reviewed by the controller as evidenced by their respective sign-offs.
Which of the following types of audit procedures do these actions
illustrate?
• Question 41 Which of the following best represents a key control for
ensuring sales are properly authorized when assessing control risks
for sales?
• Question 42 An auditor who uses a transaction cycle approach to
assessing control risk most likely would test control activities related to
transactions involving the sale of goods to customers with the
• Question 43 To determine whether internal control relative to the
revenue cycle of a wholesaling entity is operating effectively in
minimizing the failure to prepare sales invoices, an auditor most likely
would select a sample of transactions from the population represented
by the
• Question 44 For effective internal control, the billing function
should be performed by the
• Question 45 At which point in an ordinary sales transaction of a
wholesaling business would a lack of specific authorization be of least
concern to the auditor in the conduct of an audit?