POP QUIZ:
1.
Under the IESBA Code of Ethics for Professional Accountants, threats to the fundamental principles are to be identified so that safeguards can be applied. Potential threats identified include all of the following except:
A. self-interest threats.
B. self-review threats.
C. structural threats.
D. All of the answer choices are threats identified in the Code of Ethics.
2.
Which of the following tests of controls most likely would help assure an auditor that goods shipped are properly billed?
A. Scan the sales journal for sequential and unusual entries.
B. Examine shipping documents for matching sales invoices.
C. Compare the accounts receivable ledger to daily sales summaries.
D. Inspect unused sales invoices for consecutive prenumbering.
3.
Section 409 of SOX Title IV, “Real Time Issuer Disclosures,” dictates that:
A. each issuer disclose whether or not the audit committee is comprised of at least one member who is a financial expert.
B. the SEC will review disclosures made by issuers.
C. issuers disclose to the public on a rapid and current basis any additional information concerning material changes in the financial condition or operations.
D. each issuer disclose whether or not they have adopted a code of ethics for senior financial officers.
4.
Which of the following represents an inherent limitation of internal controls?
A. Bank reconciliations are not performed on a timely basis.
B. The CEO can request a check with no purchase order.
C. Customer credit checks are not performed.
D. Shipping documents are not matched to sales invoices.
I will post correct answers in 2 hours.
Good luck 🙂
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