56) An auditor concluded that no excessive costs for an idle plant

Question : 56) An auditor concluded that no excessive costs for an idle plant : 2134334

56) An auditor concluded that no excessive costs for an idle plant were charged to inventory. This conclusion most likely related to the auditor's objective to obtain evidence about the financial statement assertions regarding inventory, including presentation and disclosure, and:

A) valuation and allocation.

B) completeness.

C) existence.

D) rights and obligations.

57) Which assertion for ending inventory is most likely violated if the gross profit percentage is much greater than last year?

A) Existence.

B) Completeness.

C) Rights and obligations.

D) Valuation and allocation.

58) Which of the following is a question that the auditor would expect to find on the production process section of an internal control questionnaire?

A) Are vendors' invoices for raw materials approved for payment by an employee who is independent of the cash disbursements function?

B) Are signed checks for the purchase of raw materials mailed directly after signing without being returned to the person who authorized the invoice processing?

C) Are all releases by storekeepers of raw materials from storage based on approved requisition documents?

D) Are details of individual disbursements for raw materials balanced with the total to be posted to the appropriate general ledger account?

59) In order to efficiently establish the correctness of the accounts payable cutoff, an auditor will be most likely to:

A) coordinate cutoff tests with physical inventory observation.

B) compare cutoff reports with purchase orders.

C) compare vendors' invoices with vendors' statements.

D) coordinate mailing of confirmations with cutoff tests.

60) The accuracy of perpetual inventory records may be established, in part, by comparing perpetual inventory records with:

A) purchase requisitions.

B) receiving reports.

C) purchase orders.

D) vendor payments.

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Auditing 2 Years Ago 277 Views
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