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• Question 46 Which of the following fraudulent activities most likely
could be perpetrated due to the lack of effective internal control in the
revenue cycle?
• Question 47 To verify that all sales transactions for which shipment
has occurred have been recorded, a test of transactions should be
completed on a representative sample drawn from
• Question 48 After testing a client’s internal control activities, an
auditor discovers a number of significant deficiencies in the operation
of a client’s internal control. Under these circumstances the auditor
most likely would
• Question 49 Which of the following is true regarding significant
deficiencies?
• Question 50 During the audit the independent auditor identified the
existence of a significant deficiency in the client’s internal control and
communicated this finding in writing to the client’s management and
to those charged with governance. The auditor should
• Question 51 Which of the following statements is correct concerning
an auditor’s communication on internal control related matters noted
in an audit?
• Question 52 Which of the following would not typically be a control
relied upon during an audit?
• Question 53 The auditor would be least likely to be concerned about
internal control as it relates to
• Question 54 When preparing a record of a client’s internal control,
the independent auditor sometimes uses a flowchart, which can best be
described as a
• Question 55 One important reason why a CPA, during the course of
an audit engagement, prepares internal control flowcharts is to
• Question 56 In an audit of financial statements, an auditor’s
primary consideration regarding a control is whether the control
• Question 57 Effective internal control requires organizational
independence of departments. Organizational independence would be
impaired in which of the following situations?
• Question 58 An auditor would most likely be concerned with
controls that provide reasonable assurance about the