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01/12/2023, 22:54 Dashboard / / ACACT304A (S2 23) Audit and Assurance Student Multi-Groups (7954) / Week @ / Moodle Quiz - Internal control and control risk Co Question 1 Correct Moadle Quiz - Internal control and control risk: Attempt review My courses / Bachelor of Applied Commerce / 2023 / Year3 / S2 2023 Startedon Monday, 25 September 2023, 11:26 PM State Finished mpleted on Monday, 25 September 2023, 11:54 PM Time taken 28 mins 43 secs Grade 8.00 out of 10.00 (80%0) Mark 100 oLt of 100 The purpose of controls is to: Select one: a b. Question 2 Correct Support automated parts of a business in the functioning of the controls Detect misstotements in the financial statements Prevent misstatements in the financial statements All of these options Mark 1.00 oLt of 100 What is the best way for an auditor to obtain evidence about the controls with respect to “segregation of duties”? Select one: a. b. Re-perform the task Discuss the performance of duties within the company with the internal auditor Observe staff performing their duties Inspect documents and records to ensure an independent check has been performed https.//courses.highered.tafensw.edu.au/mod/quiz/review.php?attempt=146553&cmid=837350 114
01/12/2023, 22:54 Moadle Quiz - Internal control and control risk: Attempt review Question 3 Correct Mark 1.00 out of 100 Detect controls do NOT include: Select one: 0. Reconciliations b. Account coding v c. Management level reviews d. Performance indicators Question 4 Correct Mark 1.00 oLt of 100 What would be an appropriate sample of invoices to gain reasonable assurance that all payments dre properly authorised as part of the annual audit? Select one: a. Any of these tests would be acceptable b. Randomly choose one month and select every invoice for that month c. Select dllinvoices greater than $5,000 generated throughout the year d. Randomly select a sample of 100 invoices from throughout the year v Question 5 Incorrect Mark 0.00 out of 1.00 Which of the following would NOT require the auditor to increase the level of control testing for a particular control? Select one: 0. Alow degree of reliance s to be placed on the control to limit the amount of substantive testing required x b. Thecontrol is performed daily instead on monthly c. The risk of a material misstatement addressed by the control is very important d. There is one control relating to a particular audit objective https.//courses.highered.tafensw.edu.au/mod/quiz/review.php?attempt=146553&cmid=837350 2/4
01/12/2023, 22:54 Moadle Quiz - Internal control and control risk: Attempt review Question 6 Incorrect Mark 0.00 out of 1.00 Which of the following statements best describes the relotionship between the required understanding of the internal control structure and the preliminary audit strategy? Select one: a. Normally, greater understanding is required when the lower assessed level of control risk approach is adopted b. No understanding is required in the planning stage unless tests of controls are o planned part of the strategy c. Normally, less understanding is required when the lower assessed level of control risk approach is adopted d. Normally, greater understanding is requircd when the primarily substantive approach is adopted x Question 7 Correct Mark 1.00 oLt of 100 Inspection of physical evidence is a control test used by auditors. It: Select one: a. Isreliant of questioning skills b. Requires the auditor to re-perform the control c. Relies on testing the physical evidence v o Is subject to a limitation because employees may be more diligent when they know they are being observed Question 8 Corrcct Mark 100 oLt of 100 A major change to the accounting system takes place during the year. The effect on control testing would be that the auditor: Select one: a. Willnot conduct controls testing because the client has clearly given thought to ensuring the new system works well b. Canassume the system change was necessary and has improved the client’s controls, so should only test the period prior to the change c. Canaossume the system change was necessary and has improved the client’s controls, so should only test the period following the change d. Should ensure controls testing is performed for periods both before and after the change became effective v https.//courses.highered.tafensw.edu.au/mod/quiz/review.php?attempt=146553&cmid=837350 3/4
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01/12/2023, 22:54 Moadle Quiz - Internal control and control risk: Attempt review Question 9 Correct Mark 1.00 out of 100 Which of the following statements is correct with respect to how control risk should be documented in the audit working papers? Select one: a. Where control risk is assessed as high, only this conclusion needs to be documented D. Where control risk is assessed as less than high, the basis for this assessment must be documented c. Commonly control risk is documented in memo form arranged by financial statement ossertion d. Allof these options v Question 10 Correct Mark 1.00 oLt of 100 Which of the following would be a test of controls relating to sales? Select one: 0. Checking sales orders to ensure orders over d certain value have been authorised by the credit controller v b. Checking that the cash received in the bank account agrees with the correct sales ledger account c. Checking that the balance on the list of debtors agrees with the sales ledger control account o Checking that details on a sales invoice agree with the goods despatch note <« Week 9 Lecture Slides (Chapter 10) Jump te.. Week 10 Lecture Slides (Chapter 1) » https.//courses.highered.tafensw.edu.au/mod/quiz/review.php?attempt=146553&cmid=837350 4/4
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1. In this section we examine three theories of investor preference: The dividend irrelevance
theory. The "bird in the hand" theory, the tax preference theory, which theory is the best?
What is the different of stock dividends, stock splits, and stock repurchase.
2. In the working capital management, we know about cash conversion cycle model. For
problem if average inventories are $3 million and sales are $11 million. If receivables are
S 657.535 and sales are S 11 million. Then, if its cost of goods sold are $9 million per year
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Your first internship assignment is to prepare two schedules for Windsor Blue Co., a manufacturing company. You have a file that
contains a copy of last year's work for both schedules; you plan to follow the same format as last year, hoping the staff accountant had
it right. You also have access to the full set of financials for Windsor Blue, and you can dig further into any of the accounts via the
accounting system, too.
Here's the information you have pulled, with the same items as last year.
DM Inventory
WIP Inventory
FG Inventory
DM purchases
DL costs
Production supervisor salary
Utility costs in production space
Depreciation on manufacturing facility and equipment
Beginning of Year
End of year
$9,200
$10,000
21,000
13,000
6,300
8,000
153,000
232,000
56,000
14,000
42,000
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Quick ratio
Adieu Company reported the following current assets and current liabilities for two recent years:
Dec. 31, 20Y4 Dec. 31, 20Y3
Cash
$830
$1,090
Temporary investments
1,200
1,500
Accounts receivable
820
910
Inventory
2,100
2,500
Accounts payable
1,900
2,500
a. Compute the quick ratio on December 31 for each year. Round to one decimal place.
20Υ4
20Υ3
Quick Ratio
b. Is the quick ratio improving or declining?
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The adjustment of overapplied manufacturing overhead cost results in all the following, EXCEPT:
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XYZ Company had the following information for the year:
red
Direct materials used
OMR 110,000
dout of
Direct labor incurred (5,000 hours)
OMR 150,000
Actual manufacturing overhead incurred
OMR 166,000
on
The Company used a predetermined overhead rate of OMR 30 per direct labor hour for the year. Assume the only inventc
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Exercise 9-12 a-b (Part Level Submission)
Oriole Supply Co. has the following transactions related to notes receivable during the last 2 months of 2020. The company does not make entries to accrue interest except at
December 31.
Nov. 1
Loaned $23,50Chcash to Manny Lopez on a 12-month, 12% note.
Dec. 11
Sold goods to Ralph Kremer, Inc., receiving a $61,200, 90-day, 10% note.
16
Received a $97,200, 180 day, 8% note in exchange for Joe Fernetti's outstanding accounts receivable.
31
Accrued interest revenue on all notes receivable.
(a)
Your answer is correct.
lournalize the transactions for Oriole Supply Co. (Ignore entries for cost of goods sold.) (Credit account titles are…
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QUESTION 9
For the year ended December 31, Year 2
For the year ended December 31, Year 1
Revenues
$ 7,500
$ 500
Expenses
1,500
Net Income
December 31, Year 2
December 31, Year 1
Assets
$ 16,500
$ 1,000
500
Liabilities
Stock
300
300
Retained Earnings
1.$
200
Assume Year1 is the company's first year of business and there were $100 dividends in Year 1 and $100 dividends in Year 2. After
determining the missing amounts ($
Earnings 1.$
in the above…
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Case Study # 4 Excel Submission – Capital Budgeting Comprehensive Problem
Pinnacle Custom Home Builders purchased a 40 foot articulating boom lift three years ago for
$50,000. The equipment has been depreciated under the 5-year MACRS schedule (20%, 32%,
19%, 12%, 12% & 5%). The old equipment can be sold for $33,000.
Pinnacle is considering the purchase of a new 60 foot articulating boom lift that would allow
the company to complete nearly all of its construction projects without the need for costly rental
lifts. The new lift could be purchased for $105,000 and would also fall under the 5-year MACRS
depreciation schedule.
Assume the old and new equipment would provide the following operating gains (or losses)
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FABM1 21-22 WEEK 4 TASK
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Perform operations involving simple cases with the use of the accounting equation (ABM_FABM11-Illb-c-9)
S.Y. 2021-2022
ARISTOTLE
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WEEK 4- LEARNING TASK 3 PAGE 21
Learning Task 3: The following transactions were made during the first month of a single
proprietor's business operation.
1. Mr. Y started a grocery store. He invested P 200,00 as initial investment.
2. He registered his business paying P 1,500 for registration.
3. He paid P 20,000 for store rent applicable for one year.
4. He incurred and paid P25,000 for the repair of the grocery store.
5. He purchased merchandise for sale amounting to P 300,000, paying P
200,000 with the balance to be paid after 60 days.
6. He paid P2,000 for the transportation of the merchandise purchased.
7. He hired a saleslady for a contract of P 5,000 per month salary.
8. He sold P100,000 worth…
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Question 6
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shifting the graph of f(x) to the left 39 units
shifting the graph of f(x) upwards 39 units
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Entries for notes payable
Bennett Enterprises issues a $660,000, 45-day, 9%, note to Spectrum Industries for merchandise inventory.
Assume a 360-day year. If required, round your answers to the nearest dollar.If an amount box does not require an entry, leave it blank.
a. Journalize Bennett Enterprises' entries to record:
1. the issuance of the note.
2. the payment of the note at maturity.
2
b. Journalize Spectrum Industries' entries to record:
1. the receipt of the note.
2. the receipt of the payment of the note at maturity.
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The comparative balance sheets of Constantine Cavamanlis Inc. at the beginning and the end of the year 2020 are as follows.
CONSTANTINE CAVAMANLIS INC.
BALANCE SHEETS
Dec. 31, 2020
Jan. 1, 2020
Inc./Dec.
Assets
Cash
$ 45,000
$ 13,000
$32,000
Inc.
Accounts receivable
91,000
88,000
3,000
Inc.
Equipment
39,000
22,000
17,000
Inc.
Less: Accumulated Depreciation-Equipment
17,000
11,000
6,000
Inc.
Total
$158,000
$112,000
Liabilities and Stockholders' Equity,
Accounts payable
$ 20,000
$ 15,000
5,000
Inc.
Common stock
100,000
80,000
20,000
Inc.
Retained earnings
38,000
17,000
21,000
Inc.
Total
$158,000
$112,000
Net…
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Current Attempt in Progress
Blossom Games Inc. adjusts its accounts annually. The following information is available for the year ended December 31, 2022.
1.
Purchased a 1-year insurance policy on June 1 for $ 2,196 cash.
2.
Paid $7,930 on August 31 for 5 months' rent in advance.
On September 4, received $ 4,392 cash in advance froma corporation to sponsor a game each month for a total of 9 months
3.
for the most improved students at a local school.
Signed a contract for cleaning services starting December 1 for $ 1,220 per month. Paid for the first 2 months on November
4.
30. (Hint: Use the account Prepaid Cleaning to record prepayments.)
On December 5, received $ 1,830 in advance from a gaming club. Determined that on December 31,$ 590 of these…
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Business started off great the first year that the Golden Wolves Statues started production. Corey
realized, however, that the business was seasonal and had peak sales in the fall, during the third
quarter, when the students started college and continued through the beginning of the football
season. The following information concerns operations for Year 2, the coming year, and for the
first two quarters of Year 3.
A. Golden Wolves Statue Company is now making only the forward-facing statue with the
Alvernia University t-shirt and sells the product for $150/unit. Budgeted unit sales for the
next six quarters are as follows (all sales are on credit).
Year 2 Quarter
Year 3 Quarter
3
4
2.
Budgeted unit sales
680
000
009
B. Sales are collected in the following pattern: 75% in the quarter the sales are made, and the
remaining 25% in the following quarter. On January 1, Year 2, the company's balance sheet
shows $6,500 in accounts receivable, all of which will be collected in the…
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Assignment Problem
Anand Kalaimani Al Harthi SAOG located in Muscat Sultanate of Oman involved in manufacturing of
Drugs and Pharmaceutical Industry from 1981 to till now. The SAOG Company has provided the
following information for the months of September, October, November and December 2023.
Month
Sales
Material
Wages
Postage
Electrical
Other
September
Expense
Expense
10,000
6,000
350
1,200
1,000
5,000
October
12,500
7,500
550
2,400
2,000
6,000
November
13,600
8,200
850
3,600
3,000
5,500
December
19,400
9,000
950
4,800
4,000
3,200
Additional information:
a) Cash Balance on 1/10/2023 is RO X000000
b) Sales 25 per cent is for Cash in the same month. 50 per…
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Question 24 of 50
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Sheridan Manufacturing Company expects the following sales in January, February, and March:
Cash
Credit
Sales
Sales
$50900
$250500
January
February
$45900
$240500
March
$85000
$325000
The controller has determined that the company collects credit sales as follows: 60% in the month of sale, 30% in the first month
after sale, 5% in the second month after sale, and 5% is expected to be uncollectible. How much cash will be collected from
customers in March?
O $352150
O $364675
O $410000
O $279675
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Koch Corporation's adjusted trial balance contained the following asset accounts at December 31, 2020: Cash $7,000, Land
$40,000, Patents $12,500, Accounts Receivable $90,000, Prepaid Insurance $5,200, Inventory $30,000, Allowance for Doubtful
Accounts $4,000, and Equity Investments (to be sold in the next quarter) $11,000.
Prepare the current assets section of the balance sheet. (List Current Assets in order of liquidity.)
КОСН СORPORATION
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Table of Contents > Week 9: Operational and legal Considerations > Lecture Notes > 09 Operational and Legal Considerations
09 Operational and Legal Considerations -
>
Calculating Capacity
• How many machines do you need?
• You expect your sales to be
3,000,000 granola bars (20g each)
• How large is your plant?
per month
• How many workers do you need?
The machine:
• How much is the investment?
Capacity: 100 kgs per hour
• What are the operating costs?
Requires 2 people to operate it
Takes 8 ft x 40 ft space
• Cost per machine $15,000
Energy and maintenance: $5 per hour
• Cost of material and packaging:
$0.12 per bar
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Cullumber Co. has the following transactions related to notes receivable during the last 2 months of the year. The company does not make entries to
accrue interest except at December 31.
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Nov. 1 Loaned $53,400 cash to C. Bohr on a 12-month, 9% note.
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Dec. 11 Sold goods to K. R. Pine, Inc., receiving a $5,400, 90-day, 8% note.
16 Received a $9,600, 180-day, 8% note to settle an open account from A. Murdock.
31 Accrued interest revenue on all notes receivable.
Journalize the transactions for Cullumber Co. (Omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is entered.…
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Homework 11
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Question 8
Suppose you invest $120 a month for 5 years into an account earning 8% compounded monthly. After 5
years, you leave the money, without making additional deposits, in the account for another 23 years. How
much will you have in the end?
$
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Double-Declining-Balance Depreciation
A building acquired at the beginning of the year at a cost of $1,193,000 has an estimated residual value of $220,000 and an estimated useful life of 40 years.
Determine the following.
a. The double-declining-balance rate
%
b. The double-declining-balance depreciation for the first year
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- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
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Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,

Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON

Intermediate Accounting
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ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education