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NEW QUESTION: 1
An auditor confirmed accounts receivable as of an interim date, and all confirmations were returned and
appeared reasonable. Which of the following additional procedures most likely should be performed at
year-end?
A. Review supporting documents for new large balances occurring after the interim date, and evaluate
any significant changes in balances at year-end.
B. Send confirmations for all new customer balances incurred from the interim date to year-end.
C. Resend confirmations for any significant customer balances remaining at year-end.
D. Review cash collections subsequent to the interim date and the year-end.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Choice "C" is correct. When auditing procedures are performed before year-end, additional procedures
should be performed to extend the interim conclusions to year-end. Large balances would be tested by
reviewing supporting evidence, and significant changes in the balance would also be investigated.
Choice "A" is incorrect. The auditor would not send confirmations for all new customer balances, but
instead would focus on those that appear material.
Choice "B" is incorrect. The purpose of performing tests at interim is to minimize the amount of work that
needs to be performed at year end, to improve efficiency. If confirmations were sent at interim, and the
auditor was satisfied with the results of that testing, there would be no reason to send additional
confirmations. Rather, interim conclusions would be extended by focusing on any material changes in the
account, including new, large balances.
Choice "D" is incorrect. Review of subsequent cash collections is a means of supporting a receivables
balance when no confirmation response has been received. This procedure generally would not be
performed as a means of extending interim conclusions to year-end.
NEW QUESTION: 2
OSHA has identified six standards that apply to almost all general industry employers. All of the following are standards as defined by OSHA that apply to employers except for which one?
A. Fire safety standard
B. Exit routes standard
C. Emergency action plan standard
D. Equity pay standard
Answer: D
NEW QUESTION: 3
Scenario
Additional Information
Further information on some resources who could be involved in the project:
Outcome Account Manager: He represents Outcome which is a recruitment agency that provides specialist outsourcing resources. Outcome provided the consultants who carried out the feasibility study and the same consultants will be providing support and guidance to the Information Technology and Facilities teams during the project.
Director of Finance Division: She was transferred from the Information Technology Division 12 months ago. She is responsible for ensuring a cost-conscious approach is adopted in all operational and project activities across the Ministry of Food Hygiene.
Hardware Manager: Reports to the Director of Information Technology. He provides computer hardware to all business functions but has little awareness of the needs of his colleagues working in software.
Payroll Manager: Reports to the Director of Finance. He is a very experienced and efficient qualified accountant who has much of the responsibility of running the Finance Division on behalf of the Director of Finance. He has been involved in drafting the Ministry's business strategy and assisting in a full business risk assessment. He also drafted the corporate Business Case standards.
Which 2 alternative actions apply to the proposed user assurance for this project?
A. Retain because they are able to help identify stakeholders and their communication requirements.
B. Remove because neither of these individuals are from the business functions to be outsourced.
C. Retain because their divisions will be the major users of the outsourced services and they can provide the user perspective on the impact of any proposed changes.
D. Retain because selecting only one of them may cause unnecessary conflict.
E. Retain because they are both very positive about outsourcing the selected business functions.
Answer: A,C
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