ACC 403 Week 9 Quiz 7

ACC 403 Week 9 Quiz 7

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  1. A document that initiates shipment of goods and indicates the description of the merchandise, the quantity shipped, and customer name and address is the: 
  2. When an employee who is authorized to make customer entries in the accounts receivable subsidiary ledger, purposefully enters cash received into the wrong customer's account that employee may be suspected of: 
  3. Before goods are shipped on account, a properly authorized person must: 
  4. In the accounts receivable subsidiary ledger the length of time the account has been due can be useful to the client and the auditor in preparing the: 
  5. The document that requires adjustments to the customers subsidiary ledger account is the: 
  6. The total of the individual account balances in the accounts receivable subsidiary ledger should equal the: 
  7. An effective procedure to test for unbilled shipments is to trace from the: 
  8. When assessing risk control, the auditor must do all of the following except: 
  9. ________ tests are for omitted transactions, while ________ tests are for nonexistent transactions. 
  10. A document sent to each customer showing his or her beginning accounts receivable balance and the amount and date of each sale, cash payment received, any debit or credit memo issued, and the ending balance is the: 
  11. Credit memos are normally issued to: 
  12. Generally, when is the earliest point in the sales and collection cycle in which revenue can be recognized? 
  13. Most companies recognize sales revenue when: 
  14. What critical event must take place before goods can be shipped in order to assure payment can be reasonably expected? 
  15. When designing audit procedures, tracing of source documents to the customers subsidiary ledger and subsequently to the general ledger is done to satisfy what assertion? 
  16. Which of the following is the exception rate that the auditor expects to find before testing? 
  17. Which of the following is the risk that an auditor will reach an incorrect conclusion because a sample is not representative of the population? 
  18. A sample in which the characteristics of the sample are the same as those of the population is a(n):
  19. Rodgers CPA believes that the rate of client billing errors is 4% and has established a tolerable deviation rate of 6%. In auditing client invoices Rodgers should use: 
  20. When auditors wish to evaluate a sample statistically, an acceptable selection method is: 
  21. Auditors often use the ________ to determine the estimated population exception rate. 
  22. The most serious shortcoming of the haphazard sample selection method is: 
  23. The advantage of systematic sample selection is that: 
  24. Attributes sampling would be an appropriate method to use on which one of the following procedures in an audit program? 
  25. When the computed upper exception rate is greater than the tolerable exception rate, it is necessary for the auditor to take specific action. Which of the following courses of action would be most difficult to justify? 
  26. One of the causes of nonsampling risk is: 
  27. The sample exception rate equals: 
  28. In systematic sample selection, the population size is divided by the number of sample items desired in order to determine the:
  29. Which of the following would have the least impact in determining sample size?
  30. When using statistical sampling, the auditor would most likely require a smaller sample if the: 

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