ExtAud 2 - Quiz 2 PDF

* 1/1 ExtAud 2 - Quiz 2 Total points 10/15 a. True, True b. False, T...

* 1/1 ExtAud 2 - Quiz 2 Total points 10/15 a. True, True b. False, True c. True, False Email * [email protected] d. False, False * 0/1 * 1/1 a. True, True a. False, False b. False, True b. False, True c. False, False c. True, True d. True, False d. True, False Correct answer c. False, False * 1/1 * 0/1 a. True, False a. True, False b. False, True b. False, True c. False, False c. False, False d. True, True d. True, True Correct answer c. False, False * 1/1 Internal control over bonds payable is best when * 1/1 a. The company utilizes the services of a bond trustee. a. False, False b. The company segregates approval from issuance of the bonds. b. False, True c. Bonds are countersigned by two officers. c. True, False d. Bonds are serially numbered. d. True, True * 0/1 In a properly designed accounts payable system, a voucher is prepared after *0/1 the invoice, purchase order, requisition, and receiving report are verified. The next step in the system is to a. Enter the check amount in the check register. b. Cancel the supporting documents. a. False, False c. Approve the voucher for payment. b. False, True d. Post the voucher amount to the expense ledger. c. True, True Correct answer d. True, False b. Cancel the supporting documents. Correct answer c. True, True * 0/1 * 1/1 a. True, True b. False, True a. True, True c. False, False b. False, True d. True, False c. True, False Correct answer d. False, False c. False, False When using confirmations to provide evidence about the completeness *1/1 * 1/1 assertion for accounts payable, the appropriate population most likely would be a. Amounts recorded in the accounts payable subsidiary ledger. b. Payees of checks drawn in the month after the year-end. c. Invoices filed in the entity’s open invoice file. a. False, False d. Vendors with whom the entity has previously done business. b. False, True c. True, False d. True, True Which of the following is a substantive procedure that an auditor most likely *1/1 would perform to verify the existence and valuation of recorded accounts payable? In auditing long-term bonds payable, an auditor most likely would * 1/1 a. Investigating the open purchase order file to ascertain that prenumbered purchase orders are used and accounted for. a. Perform analytical procedures on the bond premium and discount accounts. b. Receiving the client’s mail, unopened, for a reasonable period of time after the year-end to search for unrecorded vendors’ invoices. b. Examine documentation of assets purchased with bond proceeds for liens. c. Vouching selected entries in the accounts payable subsidiary ledger to purchase c. Compare interest expense with the bond payable amount for reasonableness. orders and receiving reports. d. Confirm the existence of individual bondholders at year-end. d. Confirming accounts payable balances with known suppliers who have zero balances. ID Number * 220124 This content is neither created nor endorsed by Google. Report Abuse - Terms of Service - Privacy Policy Forms