Contemporary Auditing Exam Questions and Answers: Final Exam Help

Summary

Auditing is a key part of accounting. Students get practice with multiple-choice questions on auditing topics.

Employees and dishonesty

Bonding of employees is discussed. Transaction objectives are covered. Students choose the correct answer from multiple options.

Inventory test counts

Students learn about factors that affect the extent of inventory test counts. The use of statistical sampling methods is covered. Students choose the correct answer from multiple options.

Inventory observation

The auditor’s strategy in performing test counts during the inventory observation is discussed. The requirement for inventory observation is covered. Students choose the correct answer from multiple options.

Investments and plant assets

Specific audit objectives for investments and plant assets are covered. The audit significance of the financial ratio, fixed asset turnover, is discussed. Students choose the correct answer from multiple options.

Key terms

GAPP

Generally Accepted Accounting Principles, a set of accounting rules and guidelines.

Audit objectives

Specific goals that auditors aim to achieve during an audit.

Inventory test counts

Auditing procedures to verify the existence and condition of inventory.

Statistical sampling methods

Techniques used to select a representative sample from a larger population for testing.

AICPA

American Institute of Certified Public Accountants, a professional organization for accountants.

Subsequent events

Events that occur after the balance sheet date but before the financial statements are issued.

Questions this document helps with

• What are the transaction objectives for accurate sales and cash receipts?
• When is observation of inventories a required audit procedure?
• What does the auditor’s strategy involve in performing test counts during inventory observation?

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