Reference no: EM131966036
1. Key segregations of duties in the human resource management process include all of the following except:
A. the supervision function should be separate from the payroll-processing function.
B. the disbursement function should be separate from the supervision function.
C. the human resource function should be separate from updating payroll records.
D. the payroll-processing function should be separate from the general ledger function.
2. Generally, how is the inherent risk level for the human resource management process assessed?
A. Inherent risk is normally set high for the human resource management process.
B. Inherent risk for officer compensation is set low.
C. The inherent risk associated with non-officers of the company is generally considered high risk.
D. Inherent risk is normally set low for non-officers.
3. Which of the following procedures are substantive analytical procedures that can be used to provide audit evidence related to the payroll?
A. Compare payroll costs as a percentage of sales with prior years' and industry data.
B. Compare labor utilization rates and statistics with industry data.
C. Compare budgeted payroll expenses with actual payroll expenses.
D. All of the above procedures are substantive analytical procedures
4. Payroll expense properly split between direct and indirect labor would be an example of which assertion?
A. Authorization of Payroll Transactions
B. Occurrence
C. Cutoff
D. Classification
5. Procedures an auditor should perform to test the control activities related to the occurrence assertion would include all of the following, except
A. Observe proper segregation of duties.
B. Compare actual cost of goods sold to budgeted amounts.
C. Review procedures for the transfer of inventory.
D. test procedures for accounting for numerical sequence of material requisitions.
6. Substantive analytical procedures that can test the fairness of inventory and related accounts include all of the following, except:
A. Compare days outstanding in inventory to previous periods and industry data.
B. Trace a sample of payroll checks to the payroll register.
C. Compare gross profit percentage by product line with previous periods' and industry data.
D. Compare actual cost of goods sold to budgeted amounts.
7. Key segregations of duties in the inventory management process include all of the following except separating:
A. inventory stores function from cost accounting.
B. inventory management from cost accounting.
C. recording of inventory costs from cost accounting.
D. supervision of physical inventory from inventory management.
8. Procedures an auditor should perform during the observation of the physical count of inventory would include all of the following, except:
A. Observe the condition of the inventory for obsolete items.
B. Recompute the accuracy of a sample of inventory records.
C. Perform and record test counts.
D. Obtain tag control information, including shipping and receiving document numbers.
9. Segregation of duties for the property management process should include all of the following, except:
A. The PP&E records function should be part of the custodial function.
B. If a periodic physical inventory of property, plant, and equipment is taken, the individual responsible for the inventory should be independent of the custodial and record-keeping functions.
C. The PP&E records function should be segregated from the general ledger function.
D. The function of initiating the purchase of a capital asset acquisition should be segregated from the final approval function
10. Substantive analytical procedures for auditing property, plant, and equipment would include all of the following, except:
A. Compute the ratio of depreciation expense to the related PP&E accounts and compare to prior years' ratios.
B. Compute the ratio of insurance expense to related PP&E accounts and compare to prior years' ratios.
C. Trace a sample of assets to the property, plant, and equipment subsidiary ledger.
D. Compare prior-year balances in PP&E and depreciation expense with current-year balances.