ACC 562 EDU Great Stories /acc562edu.com ACC 562 EDU Great Stories /acc562edu.com | Page 3

11. Inventory is complex and typically considered a high-risk area
in audits of service firms. (Points: 4)
True
False
12. An auditor can utilize a cross-sectional analysis for a client
operating in multiple locations to identify areas of further inventory
testing. (Points: 4)
True
False
13. Legal expenses are reviewed by auditors for possible litigation
and related FAS 5 treatment. (Points: 4)
True
False
14. An imprest payroll account will never reach a zero balance.
(Points: 4)
True
False
15. A turnaround document is an effective completeness control
because they list essential information for further processing of the
collection on account. (Points: 4)
True
False
16. Auditors will perform an analysis of leases using SFAS 13
criteria and other EITF statements to substantiate the accounting
treatment. (Points: 4)