Our website offer you the latest AA Reliable Free Study Questions dumps torrent in pdf version and test engine version, which selected according to your study habit. You can print our AA Reliable Free Study Questions practice questions out and share the materials with your classmates and friends. The test engine version is a way of exam simulation that helps you get used to the atmosphere of AA Reliable Free Study Questions real exam and solve the problems with great confidence. With it, you will get a different life. Remember, the fate is in your own hands. Our AA Reliable Free Study Questions real dumps has received popular acceptance worldwide with tens of thousands of regular exam candidates who trust our proficiency.
Certified Public Accountant AA You can copy to your mobile, Ipad or others.
The Audit & Insurance prepare torrent is absorbed in the advantages of the traditional learning platform and realize their shortcomings, so as to develop the AA - Audit & Insurance Reliable Free Study Questions test material more suitable for users of various cultural levels. Our AA New Practice Questions dumps torrent contains everything you want to solve the challenge of real exam. Our AA New Practice Questions free dumps demo will provide you some basic information for the accuracy of our exam materials.
What we attach importance to in the transaction of latest AA Reliable Free Study Questions quiz prep is for your consideration about high quality and efficient products and time-saving service. We treasure time as all customers do. Therefore, fast delivery is another highlight of our latest AA Reliable Free Study Questions quiz prep.
CPA AA Reliable Free Study Questions - You can totally rely on us!
AA Reliable Free Study Questions study engine is very attentive to provide a demo for all customers who concerned about our products, whose purpose is to allow customers to understand our product content before purchase. Many students suspect that if AA Reliable Free Study Questions learning material is really so magical? Does it really take only 20-30 hours to pass such a difficult certification exam successfully? It is no exaggeration to say that you will be able to successfully pass the exam with our AA Reliable Free Study Questions exam questions.
The download and install set no limits for the amount of the computers and the persons who use AA Reliable Free Study Questions test prep. So we provide the best service for you as you can choose the most suitable learning methods to master the AA Reliable Free Study Questions exam torrent.
AA PDF DEMO:
QUESTION NO: 1
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: 2
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: 3
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: 4
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: 5
When questions arise on the appropriateness of the going concern assumption made by management and the existence of material misstatements which was not adequately disclosed in the financial statements would lead to auditor's-
A. Qualified opinion
B. Unmodified opinion
C. Disclaimer of opinion
D. Unmodified opinion (but have to include an emphasis of matter paragraph in the auditor's report)
Answer: A
If you have any questions after you buy our Microsoft AZ-204 study guide, you can always get thoughtful support and help by email or online inquiry. I believe our HP HPE7-M01 test braindumps will bring you great convenience. VMware 2V0-31.24 - We only use the certificated experts and published authors to compile our study materials and our products boost the practice test software to test the clients’ ability to answer the questions. EMC D-PVM-DS-23 - And we are consigned as the most responsible company in this area. Microsoft MS-721 - Our Audit & Insurance study question is compiled and verified by the first-rate experts in the industry domestically and they are linked closely with the real exam.
Updated: May 26, 2022