1.Sue is conducting a regression analysis to predict the amount of salaries expense using the number of employees and the average rate of pay. This type of regression analysis is called a(n)

independent regression.

linear regression.

multiple regression.

dependent regression.

2.Which of the following would be considered by an auditor during the accessing and preparing of data for an ADA?

account and assertion to be tested

availability of data

software to be used to conduct test

consistency of the data

3.Jeremy, CPA performs an audit data analytic and is looking at the results of the test. He observes that there is one item which seems to be an outlier. This is defined as a(n):

control exception

unacceptable risk

positive data point

notable item

4.Which of these is not an example of a sales adjustment transaction?

short payment of customer account

sales return or allowance

cash discount

bad debt write-off

5.Each major class of creditors and borrowings must be disclosed in the balance sheet. Which of these would not be shown as a class of creditors and borrowings?

taxation liabilities

revenue owing

lease liabilities

employee benefits

6.A responsibility not normally assigned to receiving department personnel is to:

enter cheque requisition data and verify the batch total.

file the purchase order copy pending arrival of goods.

prepare, a prenumbered receiving report for every order received.

compare goods received with description of goods ordered.

7.When the client company does not maintain its own share register, the auditor should obtain written confirmation from the transfer agent and registrar concerning:

guarantees of preferred share redemption values.

the number of shares issued and outstanding.

the number of shares subject to agreements to repurchase.

restrictions on the payment of dividends.

8.The assertion that is the highest risk for an auditor in auditing investments is:

presentation.

existence.

accuracy, valuation, and allocation.

completeness.

9.A substantive test for sales may include a sample of invoices from the sales journal which would be vouched back to sales orders or shipping documents in order to test occurrence.

True

False

10.Employees are generally hired by the company's purchasing department.

True

False