[jeff]

Welcome to the Q2 2015 CPA Exam Study Group for AUD.

World Premier: “Unmodified” (Audit Reports Rap Video) 🙂

Posted by Another71 on Thursday, November 13, 2014

Free NINJA: https://www.another71.com/cpa-exam-study-plan/

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[Martin]

A.

The personnel department promptly sends employee termination notices to the payroll supervisor.

Through God all things can happen!

“You never fail until you stop trying.”
― Albert Einstein
When I was young, I used to admire intelligent people;as I grow older, I admire kind people.
“Just keep swimming, just keep swimming.”

FAR= 72-84
Audit= 73-82
BEC= 74-75
Reg=77

[Martin]

In obtaining an understanding of a manufacturing entity's internal control concerning inventory balances, an auditor most likely would:

A.

analyze the liquidity and turnover ratios of the inventory.

B.

perform analytical procedures designed to identify cost variances.

C.

review the entity's descriptions of inventory policies and procedures.

D.

perform test counts of inventory during the entity's physical count.

Through God all things can happen!

“You never fail until you stop trying.”
― Albert Einstein
When I was young, I used to admire intelligent people;as I grow older, I admire kind people.
“Just keep swimming, just keep swimming.”

FAR= 72-84
Audit= 73-82
BEC= 74-75
Reg=77

[trish_1234]

c

AUD 69, 92 7/15 Gleim and Ninja test bank
FAR sometime in 10/15 Gleim
BEC not taken
REG not taken

[ladybossxo]

C

CPA Exams Done.

[trish_1234]

Which of the following explanations most likely would satisfy an auditor who questions management about significant debits to accumulated depreciation accounts in the current year?

A. Plant assets were retired during the current year.

B. The estimated remaining useful lives of plant assets were revised upward.

C. Prior years’ depreciation expenses were erroneously understated.

D. Current year’s depreciation expense was erroneously understated.

AUD 69, 92 7/15 Gleim and Ninja test bank
FAR sometime in 10/15 Gleim
BEC not taken
REG not taken

[ladybossxo]

A??

CPA Exams Done.

[trish_1234]

Answer (A) is correct.

If plant assets were retired during the current year, their carrying amount is removed from the accounts. Accordingly, the asset (plant assets) is credited, accumulated depreciation is debited, and any consideration received and gain or loss are recognized.

AUD 69, 92 7/15 Gleim and Ninja test bank
FAR sometime in 10/15 Gleim
BEC not taken
REG not taken

[trish_1234]

The client’s bookkeeper perpetrated a theft by preparing erroneous W-2 forms. The bookkeeper’s FICA withheld was overstated by $2,000 and the FICA withheld from all other employees was understated by the same amount. Which of the following is an audit procedure that would detect such a fraud?

A. Footing and crossfooting of the payroll register followed by tracing postings to the general ledger.

B. Multiplication of the applicable FICA rate by each individual’s gross annual taxable earnings.

C. Utilizing Form W-4 and withholding charts to determine whether deductions authorized per pay period agree with amounts deducted per pay period.

D. Vouching canceled checks to the appropriate federal tax form.

AUD 69, 92 7/15 Gleim and Ninja test bank
FAR sometime in 10/15 Gleim
BEC not taken
REG not taken

[NoraU]

B?

BEC 05/12/14 77
REG 08/25/14 82
FAR 11/25/14 80
AUD 02/25/15 72, 05/15/15 98! DONE!!!!!!!!!!!!!!!!!!!!!!

[trish_1234]

Answer (B) is correct.

One objective of the audit of payroll is to verify the client’s compliance with various legal requirements, e.g., income tax withholding, Social Security taxes, workers’ compensation, unemployment insurance, and wages and hours laws. The auditor should perform tests of controls by sampling payroll transactions. The deductions authorized by employees or required by law should be compared with those actually made. By comparing the recorded amounts withheld on individual employees’ W-2 forms with those independently calculated by the auditor, (s)he should detect any misstatement of FICA withholding.

AUD 69, 92 7/15 Gleim and Ninja test bank
FAR sometime in 10/15 Gleim
BEC not taken
REG not taken

[ladybossxo]

B?

CPA Exams Done.

[ladybossxo]

Lol a few seconds too late

CPA Exams Done.

[ladybossxo]

In auditing a manufacturing entity, which of the following procedures would an auditor least likely perform to determine whether slow-moving, defective, and obsolete items included in inventory are properly identified?

A.

Test the computation of standard overhead rates.

B.

Tour the manufacturing plant or production facility.

C.

Compare inventory balances to anticipated sales volume.

D.

Review inventory experience and trends.

CPA Exams Done.

[NoraU]

A client uses a suspense account for unresolved questions whose final accounting has not been deter­mined. If a balance remains in the suspense account at year-end, the auditor would be most concerned about:

A.

suspense debits that management believes will benefit future operations.

B.

suspense debits that the auditor verifies will have realizable value to the client.

C.

suspense credits that management believes should be classified as “Current liability.”

D.

suspense credits that the auditor determines to be customer deposits.

BEC 05/12/14 77
REG 08/25/14 82
FAR 11/25/14 80
AUD 02/25/15 72, 05/15/15 98! DONE!!!!!!!!!!!!!!!!!!!!!!

[trish_1234]

A?

AUD 69, 92 7/15 Gleim and Ninja test bank
FAR sometime in 10/15 Gleim
BEC not taken
REG not taken

[Author]

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