최신 AA 무료덤프 - CPA Audit & Insurance

문제1

Panama and Co has been asked to take on the role of internal auditor at one of its clients and would be responsible for implementing its own recommendations.
Which of the following will NOT be considered by external auditors in their assessment of whether to use the work of internal audit?

A. To whom the internal audit department of Panama and Co reports

B. The fact that the fee will fall if much use can be made of internal audit work

C. Whether internal audit work is properly documented

D. The technical training of the staff of the audit department of Panama and Co

정답: B

문제2

After completing an internal control review of the accounts payable department partially, the auditor suspects that some type of fraud has occurred. To ascertain whether the fraud is present, the best sampling approach would be to use

A. Monetary unit sampling to select a sample of vouchers processed by the department during the past year.

B. Discovery sampling to select a sample of vouchers processed by the department during the past year.

C. Simple random sampling to select a sample of vouchers processed by the department during the past year.

D. Judgmental sampling to select a sample of vouchers processed by clerks identified by the department manager as acting suspiciously.

정답: B

문제3

Dan Lawrence is the auditor of Nava Ltd. The directors are Bernard Russell, Pauli Morin and Cyndi Clifford. They are also the only shareholders owning 35% of total shares by Russell and Morin and the rest by Cyndi. Recent dispute between Russell and Morin arises that Dan believesmay be impossible to resolve. However, Morin requested Dan to provide her with details of all last year purchases through company's accounts by Russell and Cyndi. Dan Lawrence has all the company's books and records in his office.
What would be the most appropriate action by Dan Lawrence when Pauli Morin asked him to disclose company's accounts details?

A. Provide the relevant information before taking the consent from other directors.

B. Arrange dispute resolution meeting and find a way to resolve the dispute between Russell and Morin.

C. Provide with all the relevant information as was requested by Pauli Morin because she has the controlling interest in the company.

D. Decline the request of Pauli Morin even if she has the controlling interest in the company.

정답: D

문제4

New credit policies have been implemented to prevent entering any new sales order that would cause customers' accounts receivable balance to exceed average sales for any two-month period in the prior twelve month period resulting in controlled collectability. After implementation there were decreased sales and slower order entries as reported from divisional sales management. Division management contends that these are a direct result of the new credit policy constraints.
Sales management's data and information provides

A. A statistically valid conclusion about the impact on customer goodwill concerning the credit policy.

B. Feedback control data on the new credit policy.

C. Evidence that the new credit policy is not meeting the stated corporate objective to control the collectability of new sales volume.

D. Irrelevant argumentative information.

정답: B

문제5

During an operational audit, an auditor observes a large number of aboveground storage containers and a large amount of black emissions from a company smokestack. The organisation has an environmental safety department. The audit engagement is not designed to consider environmental concerns. The best course of audit action would be to

A. Inquire of local management as to the use of the storage tanks in order to determine if they are properly classified as an asset. Do not take action on the environmental issues because the auditor is untrained in the area, and such action is the responsibility of an already existing department.

B. Report the observations to the audit committee and seek their advice on whether the audit should be expanded for the environmental audit.

C. Make a note to consider environmental risk concerns when developing the audit plan for the next year, but do not expand the scope of the existing audit since the budget and risk priorities are already set.

D. Document the observations and report them to the environmental safety department.
Determine if their response will be timely, and follow up to determine if they have taken timely action.

정답: D

문제6

The internal auditing department has been assigned to perform an audit of a division. Based on background review, the auditor knows the following about management policies:
Company policy is to rapidly promote divisional managers who show significant success. Thus, successful managers rarely stay at a division for more than three years.
A significant portion of division management's compensation comes in the form of bonuses based on the division's profitability.
The division was identified by senior management as a turnaround opportunity. The division is growing, but is not scheduled for a full audit by the external auditors this year. The division has been growing about 7% per year for the past three years and uses a standard cost system.
During the preliminary review, the auditor notes the following changes in financial data compared to the prior year:
Sales have increased by 10%.
Cost of goods sold has increased by 2%.
Inventory has increased by 15%.
Divisional net income has increased by 8%.
Assume the auditor found that there was a plan to overstate inventory and therefore increase reported profits for the division. If reported correctly, the division would not have shown an increase in net income. The auditor has substantial evidence that the divisional manager was aware of and approved the plan to overstate inventory. There is also some evidence that the manager may have been responsible for the implementation of the plan.
The appropriate audit action would be to

A. Continue to conduct interviews with subordinates until a clear-cut case is made and then report the case to the audit committee.

B. Inform the divisional manager of the audit suspicions and obtain the manager's explanation of the findings before pursuing the matter further.

C. Inform management and the audit committee of the findings and discuss proper follow-up action and/or further investigation with them.

D. Document the case thoroughly and report the suspicions to the external auditor for further review and external reporting.

정답: C

문제7

When questions arise on the appropriateness of the going concern assumption, some of
the normal audit procedures carried out by the auditors may take on an additional significance. Auditors may also have to carry out additional procedures or to update information obtained earlier. The ISA lists various procedures which the auditors shall carry out in this context.
Which of the following is not included in the list of additional audit procedures that are to be carried out by the auditor?

A. Assess the financial ability of such parties to provide additional funds

B. Confirm the existence, legality and enforceability of arrangements to provide or maintain financial support with related and third parties

C. Inquire of the entity's lawyer regarding litigation and claims

D. Evaluate management's plans for future actions based on its going concern assessment

정답: D

문제8

Cates plc is a large organisation with a complex accounting and information system. Critical to an understanding of the system are the reporting lines and relationships between different departments.
Which of the following represents inherent limitation of a system of internal controls in Cates plc?

A. Lack of staff to ensure segregation of duties

B. Lack of controls over the purchases system

C. The possibility that staff members will collude in fraud

D. Lack of in-depth knowledge of the purposes of controls

정답: C

최신 AA 무료덤프 - CPA Audit & Insurance

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