ACC 562 EDU Learn by Doing/acc562edu.com ACC 562 EDU Learn by Doing/acc562edu.com | Page 3

False
10. The revenue cycle considered by auditors includes the sales process
but not collections. (Points: 4)
True
False
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