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- An auditor usually obtains evidence of stockholders’ equity transactions by reviewingthe entity’s(1) minutes of boards of directors meetings.(2) transfer agent’s records.(3) canceled stock certificates.(4) treasury stock certificates bookWhen auditors physically observe various items recorded in property, plant, and equipment, they are gathering evidence related to the audit objective of completeness. Orights and obligations. O existence. O presentation.In the conduct of audits of financial statements, it would be a seriousbreach of responsibility if the auditor did not thoroughly understand accounting.However, many competent accountants do not have an understanding of the auditingprocess. What causes this difference?
- Cash receipts from sales on account have been misappropriated. Which of the following acts will conceal this embezzlement and be least likely to be detected by the auditor?(1) Understating the sales journal.(2) Overstating the accounts receivable control account.(3) Overstating the accounts receivable subsidiary records.(4) Understating the cash receipts journal.Which of the following are not the rights of the auditors? a) The right to all information and explanations (from management) necessary for the proper conduct of the audit. b) The right to receive notice of all meetings of the directors and to attend those meetings. c) The right to speak at shareholders’ meetings on matters affecting the Management. d) The right to visit the branches of the client and right to access all accounting books and records. e) The right to examine and evaluate financial and information systems, recommending controls to ensure system reliability and data integrity f) The right to review data about material assets, net worth, liabilities, capital stock, surplus, income and expenditures Only d) , e) and f) All a) , b) , c) , d) and e) Only b) and c) Only bWhich of the following statements is true If only the APR on a standard, 30-year, fied-rate loan transaction increases after the Closing Disciosure has bean issued? A) A revised Closing Disclosure is required at the time of consummation, regardless of arry APR changes. B) A revised Closing Disclosure is required at consummation only if the APR is not more than one eighth of one percentage point above or below the actual APR. C) A revised Closing Disclosure is required at consummation only if the APR is not more than one fourth of one percentage point above or below the actual APR. D) A revised Closing Disclosure is required if the APR increases or decreases by any amount and the finance charges increased by more than $500
- TRUE OR FALSE 1. Tracing helps address completeness issues while vouching address existence issues. 2. Observation is limited to the point in time at which the observation took place. 3. The cost or difficulty involved in obtaining evidence is not itself a valid basis for omitting an audit procedure. 4. Minutes of meetings of board of directors are considered corroborating information. 5. If lower detection risk is determined, the auditor may expand the extent of substantive procedures to ensure the reliability of the audit evidence.State what is meant by cost accounting records and explaintheir importance in the conduct of an auditD) The title company decides which index type the ARM will use when an applicant closes the loan, and the index type generally will change after loan closing. A Loan Estimate is considered expired and is permitted to be revised by the creditor without additional justification if the consumer indicates an intent to proceed with the transaction more than: A) 1 business day after the Loan Estimate was provided. B) business days after the Loan Estimate was provided. C) 7 business days after the Loan Estimate was provided. D) 10 business days after the Loan Estimate was provided.
- The return of a positive confirmation of accounts receivable without an exceptionattests to the(1) collectibility of the receivable balance.(2) accuracy of the allowance for uncollectible accounts.(3) accuracy of the aging of accounts receivable.(4) accuracy of the receivable balance.Y8 Select the true statement about Chapter 11 bankruptcy. a.) Under Chapter 11, a company is permanently dissolved. b.) Under Chapter 11, a company may be able to continue its operations, but with a potentially higher cost of capital. c.) Under Chapter 11, a company can reorganize without officially filing a bankruptcy petition. d.) Under Chapter 11, a company's creditors are paid with the proceeds of the sale of all of the company's assets.Of the following acts, which is an unfair method of competition, or an unfair or deceptive act or practice? Provide a comparison of insurer’s financial soundless that is accurate Make an accurate statement as to an insurer’s claim practice Using the premium fund trust account within intent to indicate a production goal Provide a fair comparison of policy coverage of two different insurers