1. An advantage of an internal control questionnaire is
flexibility in design and application.
its strict adherence to a yes or no format.
it provides sufficient data for the assessment of control risk.
ease of completion.
2. Which response to a confirmation request at December 31 is most likely to indicate a misstatement?
This amount was paid on December 30.
We are unable to confirm this account.
We returned these items.
We received these goods on January 4.
3. When auditing with fraud awareness, auditors must especially notice and follow up employee activities under which of these conditions?
The company counts inventory on a cycle basis throughout the year without performing a complete inventory observation at year-end to improve efficiency.
The petty cash box is always locked in the desk of the custodian to improve security.
Cash disbursement and bank statement reconciliation responsibilities are restricted to the cashier to improve accountability.
The board of directors reviews and approves all investment transactions to prevent unauthorized transactions.
1. The purchasing department must
obtain competitive bids from vendors.
inspect incoming goods and forward them to the receiving department.
inspect vendor invoices and forward them to the accounting department.
inspect vendor invoices and forward them to the marketing department.
2. Which is a management assertion about fixed assets related to valuation or allocation?
Fixed assets are properly classified as non current assets.
Fixed asset depreciation has been correctly calculated.
The client has title to the machinery and equipment.
Pledge or assignment of fixed as collateral is appropriately shown in notes.
3. According to the Sarbanes-Oxley Act of 2002, who is responsible for assuring auditor independence?
-A. Audit committee
-B. Public Company Accounting Oversight Board
-C. Engagement partner
-D. Shareholders
Question 1
An organization that transforms resources into an intangible output in order to create time or place utility for its customers is known as a(n) __________ company.
A. outsourcing
B. service
C. manufacturing
D. ISO 9000
Question 2
Which of the following decisions is likely to be the decision starting point occurring before the other decisions?
A. The capacity decision
B. The product-service mix decision
C. The facilities layout decision
D. The facilities location decision
Question 3
__________ is the process of managing operations control, resource acquisition and purchasing, and inventory to improve overall efficiency and effectiveness.
A. Supply-chain management
B. Resource management
C. Inventory management
D. Quality control
Question 1
Which of the eight dimensions of quality refers to a measure of product life?
A. Reliability
B. Durability
C. Serviceability
D. Features
Question 2
The probability that a DVD player will eject the disk when you push the eject button is an example of which dimension of quality?
A. Aesthetics
B. Features
C. Reliability
D. Serviceability
Question 3
The starting point for instituting an organizational quality program is:
A. strategic commitment from top managers.
B. changes in operations methods.
C. improving the quality of materials.
D. employing new forms of technology.
Question 1
Statistical quality control (SQC) is:
A. a computerized quality control monitoring service.
B. a team approach to quality control.
C. useful only in determining completed items to reject.
D. a set of specific statistical techniques used to monitor quality control.
Question 2
The International Organization for Standardization requires firms to document the impact of operations on the environment. The standards are called ISO:
A. 9000.
B. 2000.
C. 9000 – 2000.
D. 14000.
Question 3
When an organization produces 100 units of output for 10 hours of direct labor, what is its labor productivity index?
A. 0.1
B. 10
C. 1000
D. 100
