[jeff]

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

[Anonymous]

12. C

13. C

[Anonymous]

Why is 13 B?

[Anonymous]

Variable=Substantive tests

Substantive tests look for the dollar value, while attribute is concerned with the controls.

[Anonymous]

ok. I thought misstatement (RMM) = substantive test

on #12. Completeness – How will you verify if all transactions are completely recorded? You have to start from the source document then trace it to the record. Completeness = Proper period, analytical procedure (ratios), document to record

[Future Ninja]

#14. An auditor using audit software probably would be least interested in which of the following fields in a computerized perpetual inventory file?

A.

Economic order quantity

B.

Warehouse location

C.

Date of last purchase

D.

Quantity sold

AUD - 79 (expired) retaking July 28,2016
FAR - 76 expiring July 31, 2016
BEC - 85
REG - 74,74,74,74,59,70,

[Anonymous]

14. A

[Anonymous]

Ah gotcha, so you go from receiving report to the journal?

And I agree, #14 is A.

[Anonymous]

Which of the following situations most likely represents the highest risk of a misstatement arising from misappropriations of assets?

A. A large number of bearer bonds on hand.

B..A large number of inventory items with low sales prices.

C. A large number of transactions processed in a short period of time.

D. A large number of fixed assets with easily identifiable serial numbers.

[Anonymous]

Yes. Because you're testing the the completeness of “materials received” so you will start from the receiving report. If the phrase “material received” was changed to “invoice” then you will start from the invoice.

[Anonymous]

A. A large number of bearer bonds on hand.

I think because bearer bonds can be easily converted to cash if presented by the holder. It's like issuing a check payable to Cash.

[Anonymous]

In a compliance audit, the auditor has a responsibility to

A. Issue a report that describes the expected benefits and related costs of the auditor’s suggested changes to the entity’s internal control.

B. Express an opinion concerning the entity’s continued eligibility for the governmental awards based on compliance.

C. Notify the governmental agency providing the awards that the audit is not designed to provide any assurance of detecting noncompliance due to fraud.

D. Consider whether management has identified the applicable compliance requirements.

[Anonymous]

You are right, the answer was A.

Is the answer to your question D?

[Anonymous]

Yes. The answer to my question is D.

[Anonymous]

Iggy, looking at your score maybe we need to start doing what you are doing LOL. Don't sweat it, quantity of MCQs is pretty irrelevant.

[Anonymous]

Agree with CPAHOPEFUL11. It's the quality not the quantity.

[Author]

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