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Auditing Principles Exam Guide

This document appears to be instructions for a final exam for an auditing principles course. It provides instructions not to cheat and to turn off mobile phones during the exam. The exam is divided into three parts. Part I contains 5 multiple choice questions about substantive tests for cash and receivables/sales. Part II contains 5 true/false questions about inventories. Part III instructs students to write explanations for accounting and auditing of cash, receivables, and inventory, as well as the objectives and major audit procedures for cash and receivables/inventory. The exam is out of 40 total points.

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221 views2 pages

Auditing Principles Exam Guide

This document appears to be instructions for a final exam for an auditing principles course. It provides instructions not to cheat and to turn off mobile phones during the exam. The exam is divided into three parts. Part I contains 5 multiple choice questions about substantive tests for cash and receivables/sales. Part II contains 5 true/false questions about inventories. Part III instructs students to write explanations for accounting and auditing of cash, receivables, and inventory, as well as the objectives and major audit procedures for cash and receivables/inventory. The exam is out of 40 total points.

Uploaded by

samuel debebe
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

PHARMA COLLEGE

Department of Accounting
3rd year principle of Auditing II final exam
Maximum point 40%
Instructor Tarik.s
Time Allowed 1:20
Instructions
1. Attempt all questions
2. cheating is strictly forbidden
3. Switch your mobile phone
Name…………………………………….. ID…………… Group………
Part I choose the best answer from the given alternatives and write the
correct answer on the space provided (2 point each)

1. Which of the following is the objective of major substantive tests of cash


transactions and balance?
a. Clerical accuracy.
b. Existence and ownership.
c. Completeness.
d. All of the above.
2. The balance sheet figure for cash should include all cash received on the final day of
the year and none receive subsequently.
a. True
b. False
3. Which of the following can be used as substantive test for receivables and sales
transactions?
a. Confirm receivable with debtors.

1
b. Perform analytical procedures.
c. Review the year-end cutoff of sales transactions.
d. All of the above.
4. Which of the following is (are) primary audit objective for receivables/sales?
a. Clerical accuracy
b. Existence
c. Valuation
d. Statement Presentation
e. All of the above
5. Which assertions relating to receivables/sales are addressed when auditors select a
sample of sales invoices and compare details to shipping documents?
[Link]
b. Ownership
[Link] d. All

Part II Say true or false (2point each)


1. Inventories play significant role in the preparation of both balance
sheet and income statement.
2. The financial statement assertion of valuation is not related to
inventories.
3. Adjustments to inventory records should be authorized.
4. Efficient and effective inventory taking requires careful planning
in advance.
5. Auditors should not observe the quality or condition of inventories

Part III Easy type questions ( 20 point )


1 Explain Accounting and Auditing for Cash
2 Explain the accounting and Auditing for Receivables
3 Explain the Accounting and Auditing for Inventory
4 Write the objective and the major audit procedure for cash
5 Discuss the objective and audit procedures for inventory for receivables and
inventory

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