What is the adjusted petty cash fund balance on December 31, 2018?

a. 4,347
b. 10,250
c. 30,000
d. 24,097

The petty cash shortage on December 31, 2018 is

a. 0
b. 5,903
c. 3,500
d. 4,347

What is the adjusted Cash in Bank- Ary Bank balance on December 31, 2018?
a. 500,000
b. 748,320
c. 432,710
d. 429,110

The entry to adjust the Cash in bank- Ary Bank account should include a debit to
a. Accounts receivable for 89,800
b. Accounts receivable for 86,300
c. Accounts payable for 228,200
d. Interest expense for 1,950

The December 31, 2015 statement of financial position should show “Cash and cash equivalents” at
a. 6,142,960
b. 5,439,360
c. 4,442,960
d. 5,442,960

A firm of independent auditors must establish and follow quality control policies and procedures because
these standards
a. Are necessary to meet increasing requirements of auditors liability as insurers
b. Are required by the SEC for auditors of all firms
c. Include formal filing of records of such policies and procedures to a regulatory agency
d. Give reasonably assurance that the firm as a whole will comply with professional standards

A quality control policy that requires personnel in the firm to adhere to independence, integrity,
objectivity, confidentiality and professional behaviour, relates to
a. Ethical requirements
b. Human resources
c. Assignment
d. Consultation

Which of the following quality control policies and procedures does not relate to human resources and
assignment?
a. Emphasize independence of mental attitude in training programs and in supervision and review
of
the audits
b. Monitor the effectiveness of recruiting programs
c. Identify criteria which will be considered in evaluating individual performance and expected-
proficiency
d. Identify on a timely basis the staffing requirements of specific audits

In pursuing a CPA firm’s quality control objectives, a CPA firm may maintain records indicating which
partners or employees of the CPA firm were previously employed by the CPA firm’s clients. Which
quality control
element would this be most likely to satisfy?
a. Monitoring
b. Assignment
c. Independence
d. Skills and competence