You have tried all kinds of exam questions when others are still looking around for AA Exam Sample Questions exam materials, which means you have stayed one step ahead of other IT exam candidates. AA Exam Sample Questions exam software provided by our Omgzlook consists of full exam resources will offer you a simulation of the real exam atmosphere of AA Exam Sample Questions. If you have the AA Exam Sample Questions certification, it will be easier for you to get respect and power. Our company happened to be designing the AA Exam Sample Questions exam question. If you want to try to know more about our AA Exam Sample Questions dumps torrent, our free demo will be the first step for you to download.
Certified Public Accountant AA Also, we have benefited from such good behavior.
More about AA - Audit & Insurance Exam Sample Questions Exams Dumps: If you want to know more about our test preparations materials, you should explore the related AA - Audit & Insurance Exam Sample Questions exam Page. It is known to us that preparing for the exam carefully and getting the related certification are very important for all people to achieve their dreams in the near future. It is a generally accepted fact that the AA Latest Exam Discount Voucher exam has attracted more and more attention and become widely acceptable in the past years.
All the necessary points have been mentioned in our AA Exam Sample Questions practice engine particularly. About some tough questions or important points, they left notes under them. Besides, our experts will concern about changes happened in AA Exam Sample Questions study prep all the time.
CPA AA Exam Sample Questions - Just come and buy it!
The dynamic society prods us to make better. Our services on our AA Exam Sample Questions exam questions are also dependable in after-sales part with employees full of favor and genial attitude towards job. So our services around the AA Exam Sample Questions training materials are perfect considering the needs of exam candidates all-out. They bravely undertake the duties. Our staff knows our AA Exam Sample Questions study quiz play the role of panacea in the exam market which aim to bring desirable outcomes to you.
We believe if you compare our AA Exam Sample Questions training guide with the others, you will choose ours at once. Our AA Exam Sample Questions study materials have a professional attitude at the very beginning of its creation.
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
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
QUESTION NO: 5
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
As we know, our products can be recognized as the most helpful and the greatest ISACA CISA-CN study engine across the globe. Users can learn the latest and latest test information through our EMC D-NWR-DY-23 test dumps. Dell D-ISAZ-A-01 - Service is first! At the same time, as long as the user ensures that the network is stable when using our SAP C_BW4H_2404 training materials, all the operations of the learning material of can be applied perfectly. The content of our GitHub GitHub-Foundations study materials has always been kept up to date.
Updated: May 26, 2022