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59. Which one of the following accounts would an auditor most likely
test by performing analytical procedures? (Points: 4)
Sales commissions expense.
Legal expenses.
Repairs and maintenance expense.
Travel expense.
60. Operational audits of cash management seek to identify areas in
which cash management may be improved to contribute to the overall
profitability and effectiveness of the organization. The internal auditor
would use which of the following procedures on an operational audit
of cash? (Points: 4)
determine the compliance of treasury activities with company
policy
review procedures for identifying and investing excess funds
review procedures for handling cash receipts
all of the above
61. Which represents the most significant risk associated with
restructuring liabilities on the financial statements? (Points: 4)
Future smoothing of income by releasing the reserves.
Related party transactions that are not recorded at arms-length.
Understatement of assets in the period of recording the liabilities.
Payroll liabilities that are not disclosed in the notes.