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BAB 18

1. This document is an engraved, prenumbered form showing the number of bonds owned by a bondholder.
1. Stock certificate
2. Bond certificate
3. Bond indenture
4. Broker’s advice

2. While recording investing transactions, all of the following functions need to be carried out, except:
1. Recording purchases, sales, and income
2. Recording market adjustments and reclassifications
3. Reviewing purchases, sales, and income transactions
4. Assessing investment performance and reporting

3. All of the following are proper classification for investments, except:
1. Held-to-maturity securities
2. Daily securities
3. Trading securities
4. Available-for-sale securities

4. Cash is related to all of the following cycles, except:
1. Revenue Cycle
2. Financing Cycle
3. Expenditure Cycle
4. All of the Above
5. This test of details of transactions for cash balances involves the counting of all undeposited cash receipts and change funds.
1. Perform Cash Cutoff Tests
2. Trace Bank Transfers
3. Count Cash on Hand
4. Tests to Detect Lapping

6. ______ is a form of fraud the results in the deliberate misappropriation of cash receipts.
1. Kiting
2. Cash Counts
3. Compensating Balance
4. Lapping

BAB 19

1. These types of events provide evidence with respect to conditions that did not exist at the date of the balance sheet but arose subsequent to that date.
1. Type 1 subsequent events
2. Type 2 subsequent events
3. Overall review
4. Balance sheet date

B.  Type 2 subsequent events

2. This item is obtained to complement other audit procedures, including confirmation of oral representations given to the auditor by management.
1. Client representation letter
2. Letter of audit inquiry
3. Final review
4. Auditor’s report

A.  Client representation letter

3. The total of uncorrected misstatements, projected uncorrected misstatements, and estimated misstatements for an account is called ______.
1. Known misstatement
2. Likely misstatement
3. Aggregate likely misstatement
4. Tolerable misstatement

B.  Likely misstatement

4. This is an internal control deficiency that adversely affects the company’s ability to initiate, record, process or report external financial data reliably in accordance with GAAP.
1. Material weakness
2. Corroboration
3. Misappropriation
4. Significant deficiency

D.  Significant deficiency

5. The management letter may include all of the following items, except:
1. Internal control matters
2. Management recommendations
3. Tax-related matters
4. All of the above

D.  All of the above

BAB 20

1. This level of assurance intends to give the positive expression of opinion by the CPA regarding an assertion by management.
1. Audit-level assurance
2. Review-level assurance
3. Agreed-upon procedures
4. No assurance

A.  Audit-level assurance

2. This defines the services associated with the review or the compilation of financial statements of a nonpublic entity.
1. SAS
2. SSAE
3. SSARS
4. GAAS

C.  SSARS

3. All of the following are risks associated with doing business electronically, except:
1. Business and information privacy practices
2. Transaction integrity
3. Information protection
4. All of the above

D.  All of the above 

4.  Of the four SysTrust Principles, this one describes the system being protected against unauthorized physical and logical access.

1. Availability
2. Security
3. Integrity
4. Maintainability

B.  Security

5.      This type of prospective financial information presents, to the best of the responsible party’s knowledge and belief, an entity’s expected financial position, results of operations, and cash flows.

1. Budget
2. Financial forecast
3. Financial projection
4. All of the above

B.  Financial forecast 

6.      This is the AICPA’s branded version of performance measure.

1. CPA Compilations
2. CPA Risk Advisory
3. CPA Performance View
4. CPA Eldercare

B.     CPA Performance View

BAB 21

1.      This part of the internal auditing definition states the auditor’s judgment has value when it is free of bias.

A.     Internal

B.     Independent and objective

C.     Systematic, disciplined approach

D.     Helps an organization accomplish its objectives

C.     Independent and objective

2.      These IIA Attribute and Performance standards describe the nature of internal audit services and provide quality criteria against which the performance of these services can be measured.

A.     Attribute Standards

B.     Performance Standards

C.     Implementation Standards

D.     None of the above

B.  Performance Standards

3.      Which of the following is not a phase of the operational audit?

1. Select auditee
2. Perform audit
3. Report findings to stockholders
4. Perform followup

C.  Report findings to stockholders

4.      This type of government audit concern examining, reviewing, or performing agreed-upon procedures on a subject matter or an assertion about a subject matter and reporting on the results.

1. Financial audits
2. Attestation engagements
3. Performance audits
4. Compliance audits

B.  Attestation engagements

5.   Within the General Standards of GAGAS, this standard states that staff assigned to perform the audit or attestation should collectively possess adequate professional competence for the tasks required.

1. Independence
2. Professional judgment
3. Competence
4. Quality Control and Assurance

C.  Competence

6.   This act established the concept of a single organizationwide government audit encompassing both financial and compliance audits.

1. Securities Act of 1933
2. Securities Act of 1934
3. Single Audit Act
4. None of the above

C.  Single Audit Act