1.

The expertise that distinguishes auditors from accountants is in the

a. Ability to interpret generally accepted accounting principles.

b. Requirement to possess education beyond the Bachelor's degree.

c. Accumulation and interpretation of evidence.

d. Ability to interpret FRSC Statements.

2. Identify the following as financial audit (FA), compliance audit (CA), and operational audit (OA).

1) A supervisor is not carrying out his assigned responsibilities.

2) A company's tax return does not conform to income tax laws and regulations.

3) A municipality's financial statements correctly show actual cash receipts and disbursements.

4) A company's receiving department is inefficient.

a. CA, CA, FA, OA c. OA, CA, FA, OA

b. OA, CA, CA, OA d. CA, CA, FA, CA

3. Independent auditing can best be described as a

a. Branch of accounting

b. Discipline that attests to the results of accounting and other operations and data

c. Professional activity that measures and communicates financial and business data

d. Regulatory function that prevents the issuance of improper financial information

Which of the following methods may be used to estimate costs by using time-and-motion studies to

approximate labor time?

A. Regression analysis C. Engineering method

B. Account analysis D. High-low method Bobadilla

40. The cost estimation method that gives the most mathematically precise cost prediction equation is

A. the high-low method C. the scatter-diagram method

B. the contribution margin method D. regression analysis Bobadilla

41. Regression analysis is better than the high-low method of cost estimation because regression

analysis:

A. is more mathematical. C. fits its data into a mathematical equation.

B. uses all the data points, not just two. D. takes more time to do. Bobadilla

42. In regression analysis, what does the variable "X" stand for in the model Y = a + bX + e?

A. The amount of the dependent variable, the cost to be estimated.

B. The regression error, which is the distance between the regression line and the data point.

C. The value for the independent variable, the cost driver for the cost to be estimated; there may

be one or more cost drivers.

D. The unit variable cost, also called the coefficient of the independent variable