CLICK FOR ANSWERS ACC 544 Final Exam 1) Which is NOT one of the AICPA's Code of Professional Conduct principles? 2) The ethical philosophy that considers the consequences of similar persons acting under similar circumstances is called 3) The fundamental issues in independence require that the auditor avoid 4) Auditors have greater liability under the Securities Act of 1933. Which is the reason that this greater liability exists? 5) The legal doctrine that states that a successful plaintiff may recover the full amount of damages from any defendant that has the ability to pay is called 6) The SEC regulation that governs disclosures in annual reports other than financial statements is the 7) Inspection of tangible assets provides evidence for which assertion? 8) The risk that the auditor may provide an inappropriate opinion based on their review of materially misstated financial statements is referred to as 9) Auditors perform the steps in which order? 10) An internal control questionnaire (ICQ) contains the question: "Does a single individual receive and list ca to sales and general ledgers?" What action must an auditor take if the manager of accounting responds yes to the 11) In addition to gaining an understanding of the internal controls, an external auditor, at minimum, is expect 12) Which method provides the auditor with the best visual grasp of a system and a means for analyzing complex operations? 13) Which of the accounts is NOT included in the revenue and collection cycle? 14) The most reliable evidence comes from 15) Custody is transferred from the warehouse to the shipping department upon authorization of the 16) An enlightened management may decrease the probability of fraud in the company best by 17) A proof of cash is normally used
18) Which is an appropriate audit program step for the review of canceled checks for authorized signatures? 19) The production authorization starts with a 20) Which is NOT recognized by GAAP as appropriate for determining inventory cost? 21) Inventory must be recorded when 22) Canceling invoices with a paid stamp after payment is a control that relates to which assertion? 23) Which is NOT a step in the search for unrecorded liabilities? 24) Which control question relates to the existence and occurrence objective in purchasing and accounts payable? 25) The audit objective that all transactions and accounts that should be presented in the financial statements are included is related to which assertion? 26) Which best describes the main reason independent auditors report on management's financial statements? 27) The audit objective that all footnotes have been included in the financial statements is related most closely to which assertation?