Reference no: EM132619075

Problem 1: The MNB Corp. implemented a new computer system to track and record insurance premiums receivable. Due to a program error, a whole series of invoices were appropriately included in revenue but were inappropriately excluded from accounts receivable. The audit objective affected by this issue is

a) Cut-off

b) Existence

c) Accuracy

d) Classification

e) Completeness

Problem 2: Which of the following would be considered the least reliable audit evidence?

a) Auditors perform analytical procedures using the preliminary financial results

b) Auditors attend the year-end inventory count and perform sample counting on the inventory

c) Auditors obtain third party confirmations from the audit client's customers

d) Auditors recalculate the depreciation expense for the year

e) All of the responses are equally reliable

Problem 3: Which of the following audit procedures would be considered the highest reliable audit evidence?

a) Auditor obtaining copies of invoices from the client

b) Auditor comparing the key financial ratios to last year

c) Auditor discussing the allowance for doubtful accounts with the CFO

d) Auditor observing the company count the inventory at year-end

e) Auditor recalculating the interest expense

Problem 4: Which audit objective does the following relate to? The inventory at year-end is being audit tested to ensure the selling price is higher than the inventory cost.

a) Cut-off

b) Valuation

c) Accuracy

d) Existence

e) Completeness