Reference no: EM132576449

Question 1: Which of the following procedures is a procedure to test the valuation of accounts receivable?

Select one or more:

a. Bank confirmation.

b. Review of debtors' aging report.

c. Stocktake.

d. Suppliers' statement reconciliation.

Question 2: Which of the following is not an example of management control?

Select one or more:

a. Communicating business objectives and goals.

b. Monitoring risk environments.

c. Monitoring performance through performance indicators and benchmarking.

d. Performing annual stocktake.

Question 3: One of the primary assertion of concern when testing liability is completeness.

Select one or more:

a. TRUE

b. FALSE

Question 4: Which one below is not a factor affecting the inherent risk at the transactional and account balance level?

Select one or more:

a. Accounts likely to require adjustment.

b. Complexity of underlying transactions.

c. Management integrity

d. Judgment involved in determining account balances.

Question 5: An auditor finds evidence that warehouse staff are fraudulently claiming overtime. The auditor should:

Select one or more:

a. Further investigate the matter and report it to management when evidence sufficient for a prosecution has been obtained.

b. Report the matter to management in the year-end management letter.

c. Report the matter to management immediately if the expected effect of the fraud on the financial report is material.

d. Report the matter to management immediately.