Taking full advantage of our AA Test Prep preparation exam and getting to know more about them means higher possibility of it. And if you have a try on our AA Test Prep exam questions, you will love them. Learning knowledge is just like building a house, our AA Test Prep training materials serve as making the solid foundation from the start with higher efficiency. As a result, the pass rate of our AA Test Prep exam braindumps is high as 98% to 100%. Many exam candidates attach great credence to our AA Test Prep simulating exam. What is more, you may think these high quality AA Test Prep preparation materials require a huge investment on them.
Certified Public Accountant AA Knowledge is wealth.
Our PDF version of AA - Audit & Insurance Test Prep training materials is legible to read and remember, and support printing request. So the AA Reliable Braindumps study tool can be reused after you have got the AA Reliable Braindumps certificate. You can donate it to your classmates or friends.
Get the test AA Test Prep certification is not achieved overnight, we need to invest a lot of time and energy to review, and the review process is less a week or two, more than a month or two, or even half a year, so AA Test Prep exam questions are one of the biggest advantage is that it is the most effective tools for saving time for users. Users do not need to spend too much time on AA Test Prep questions torrent, only need to use their time pieces for efficient learning, the cost is about 20 to 30 hours, users can easily master the test key and difficulties of questions and answers of AA Test Prep prep guide, and in such a short time acquisition of accurate examination skills, better answer out of step, so as to realize high pass the qualification test, has obtained the corresponding qualification certificate.
CPA AA Test Prep - Omgzlook is a professional website.
We understand your itching desire of the exam. Do not be bemused about the exam. We will satisfy your aspiring goals. Our AA Test Prep real questions are high efficient which can help you pass the exam during a week. We just contain all-important points of knowledge into our AA Test Prep latest material. And we keep ameliorate our AA Test Prep latest material according to requirements of AA Test Prep exam. Besides, we arranged our AA Test Prep exam prep with clear parts of knowledge. You may wonder whether our AA Test Prep real questions are suitable for your current level of knowledge about computer, as a matter of fact, our AA Test Prep exam prep applies to exam candidates of different degree. By practicing and remember the points in them, your review preparation will be highly effective and successful.
If you have any questions about the exam, Omgzlook the CPA AA Test Prep will help you to solve them. Within a year, we provide free updates.
AA PDF DEMO:
QUESTION NO: 1
The internal auditing department has been assigned to perform an audit of a division. Based on background review, the auditor knows the following about management policies:
Company policy is to rapidly promote divisional managers who show significant success. Thus, successful managers rarely stay at a division for more than three years.
A significant portion of division management's compensation comes in the form of bonuses based on the division's profitability.
The division was identified by senior management as a turnaround opportunity. The division is growing, but is not scheduled for a full audit by the external auditors this year. The division has been growing about 7% per year for the past three years and uses a standard cost system.
During the preliminary review, the auditor notes the following changes in financial data compared to the prior year:
Sales have increased by 10%.
Cost of goods sold has increased by 2%.
Inventory has increased by 15%.
Divisional net income has increased by 8%.
Assume the auditor found that there was a plan to overstate inventory and therefore increase reported profits for the division. If reported correctly, the division would not have shown an increase in net income. The auditor has substantial evidence that the divisional manager was aware of and approved the plan to overstate inventory. There is also some evidence that the manager may have been responsible for the implementation of the plan.
The appropriate audit action would be to
A. Continue to conduct interviews with subordinates until a clear-cut case is made and then report the case to the audit committee.
B. Inform management and the audit committee of the findings and discuss proper follow-up action and/or further investigation with them.
C. Inform the divisional manager of the audit suspicions and obtain the manager's explanation of the findings before pursuing the matter further.
D. Document the case thoroughly and report the suspicions to the external auditor for further review and external reporting.
Answer: B
QUESTION NO: 2
Internal auditors must exercise due care if they are to meet their responsibilities for fraud detection. Thus, the existence of certain conditions should raise auditor's professional scepticism concerning possible fraud. Which of the following is most likely to be considered as an indication of possible fraud?
A. A new management team installed as the result of a takeover.
B. Rapid turnover of financial executives.
C. Rapid expansion into new markets.
D. Tax authorities' audit of tax returns.
Answer: B
QUESTION NO: 3
An auditor performs an analytical review by comparing the gross margins of various divisional operations with those of other divisions and with the individual division's performance in previous years. The auditor notes a significant increase in the gross margin at one division. The auditor does the preliminary investigation and notes that there were no changes in products, production methods, or divisional management during the year.
Based on the above information, the most likely cause of the increase in gross margin would be
A. An increase in the number of competitors selling similar products.
B. A decrease in the number of suppliers of the material used in manufacturing the product.
C. An overstatement of year-end inventory.
D. An understatement of year-end accounts receivable.
Answer: C
QUESTION NO: 4
Internal auditors and management have become increasingly concerned about computer fraud.
Which of the following control procedures would be least important in preventing computer fraud?
A. Programme change control that requires a distinction between production programmes and test programmes.
B. Testing of new applications by users during the systems development process.
C. Segregation of duties between the applications programmer and the programme librarian function.
D. Segregation of duties between the programmer and systems analyst.
Answer: D
QUESTION NO: 5
John has been given the following draft figures for Kulran Ltd for the year ended 30 June 2011 to analyse. Materiality has been set at $35,000 and the finance director has told John in a planning meeting that there have been few changes in the year. Budgets were set at 2010 levels and there have been no major movements in non-current assets.
20112010
$$
Revenue3,497,2843,487,286
Cost of sales1,867,2942,008,967
Salaries467,900420,975
Which of the following is normally designed to detect possible material monetary errors in the above figures of financial statements?
A. Test of control
B. Walk-through test
C. Analytical procedure
D. Observation of a procedure
Answer: C
Network Appliance NS0-528 - As a responsible company over ten years, we are trustworthy. Amazon SOA-C02-KR - Because the training materials it provides to the IT industry have no-limited applicability. The content of Huawei H13-334_V1.0 study material is comprehensive and targeted so that you learning is no longer blind. Microsoft AZ-400 - It is targeted, and guarantee that you can pass the exam. CompTIA CS0-003 - You need to be responsible for your career development.
Updated: May 26, 2022