Fakultas Ekonomi & Bisnis NAMA :

Universitas Padjadjaran
NPM :

UJIAN TENGAH SEMESTER (GANJIL)

TAHUN AKADEMIK 2020/2021
Mata Kuliah : AUDITING II
Hari/Tanggal : Selasa, 20 Oktober 2020
Waktu : 100 Menit
Dosen : Tim Dosen
Sifat Ujian : Open book

MULTIPLE CHOICES

01. One of the ways to eliminate nonsampling risk is through

a. proper supervision and instruction of the client’s employees.
b. proper supervision and instruction of the audit team.
c. the use of attributes sampling rather than variables sampling.
d. controls which ensure that the sample drawn is random and representative.

02. As part of auditing equipment, the auditor will inspect new equipment additions selected from the lient’s property ledger.
The procedure will provide evidence about which of the following assertions?
a. Completeness
b. Existence
c. Valuation
d. Rights and obligations

03. Assume that the client’s valuation of an inventory item is $10 per unit for 1,000 units, using FIFO. If the most recent
acquisition of inventory was for 600 units at $10 per unit and the immediately preceding acquisition was for 700 units at
$9 per unit, the inventory item is in error and it is
a. understated $400.
b. understated $300.
c. overstated $400.
d. overstated $700.

04. An auditor is performing substantive tests of sales transactions. One step is to trace a sample of debit entries from the
accounts receivable ledger back to the supporting duplicate sales invoices. What will the auditor intend to establish by
this step?
a. Sales invoices represent existing sales.
b. All sales have been recorded.
c. All sales invoices have been correctly posted to customer accounts
d. Debit entries in the accounts receivable ledger are correctly supported by sales invoices

05. The auditor is concerned that fictitious sales have been recorded. The best audit procedure to identify the existence of
the fictitious sales would be to perform which of the following?
a. Select a sample of recorded sales invoices and trace to shipping documents ( bill of lading an d packing slips) to
verify shipment of goods.
b. Select a random sample of shipping documents (bill of lading) and trace to the sales invoice to determine whether
the invoice was properly recorded.
c. Select a sample of customer purchase order and trace through to the generation of a sales invoice.
d. Select a sample of customer purchase order to determine whether a valid customer actually exists.

06. Negative form of accounts receivable confirmation request is usefull except when
a. Internal control sorrounding accounts receivable is considered to be effective.
b. A large number of small balances are involved.
c. The auditor has reason to believe the persons receiving the requests are likely to give them consideration.
d. Individual account balances are relatively large.

07. Assume that an auditor expected that the client’s activities related to sales and accounts receivable would be similar to
industry averages. Which of the following relationships detected as part of preliminary analytical procedures would
suggest a heighted risk of misstatement in the revenue cycle?
 a. The number of days’ sales in accounts receivable increased from 44 days in the prior year to 65 days in the year
being audited.
b. The gross margin increased from 16.7% to 18.3%, while the industry average changed from 16.7% to 16.3%.
c. Accounts receivable increased 35% over the prior year, while sales stayed relatively stable.
d. All of the above.

08. Which of the following controls would be most effective in detecting a failure to record cash received from customers
paying on their accounts?
a. A person in accounting reconciles the bank deposit to the cash receipts journal.
b. Transactions recorded in the cash receipts journal are posted on a real-time basis to the accounts receivable
master file.
c. Monthly statements are sent to customers and any discrepancies are resolved by someone independent of cash
handling and accounting.
d. Deposits of cash received are made daily.

09. Which of the following statements is true regarding assertions in the revenue (sales and collections) cycle?
a. It is typical that all the assertions for revenue are equally important.
b. If a client has an incentive to overstate revenues, the existence assertion would be more relevant than the
completeness assertion.
c. Audit evidence about the existence of revenues is also appropiate evidence about the valuation of reveivables.
d. The allowance for doubtful accounts has important implications for the ownership assertion of receivables.

10. An auditor most likely would perform substantive tests of details on payroll transactions and balances when
a. Cutoff tests indicate a substantial amount of accrued payroll expense
b. The assessed level of control risk relative to payroll transactions is low.
c. Analytical procedures indicate unusual fluctuations in recurring payroll entries.
d. Accrued payroll expense consists primarily of unpaid commissions.

11. Generally accepted accounting principles require that material sales returns and allowances
a. be recorded in the period when the credit memo is issued.
b. be matched with related sales.
c. be recorded in the period when the merchandise is returned.
d. be recorded as a debit to the sales account.

12. Which of the following is the best audit procedure for determining the existence of unrecorded liabilities?
a. Examine confirmation requests returned by creditors whose accounts appear on a subsidiary balance of accounts
payable.
b. Examine unusual relationships between monthly accounts payable balances and recorded purchases.
c. Examine a sample of invoices a few days prior to and subsequent to year end to ascertain whether they have
been properly recorded.
d. Examine a sample of cash disbursements in the period subsequent to year end.

13. For which of the following auditing procedures would sampling be most appropiate?
a. Examining documents
b. Inquiring of management
c. Observing controls being completed
d. Conducting analytical procedures

14. After identifying the risks of material misstatement, the auditor develops an audit plan in response to those risks. Which
of the following plans for testing revenue would be most likely when the auditor believes that control risk is high?
a. The only evidence the auditor plans to obtain is from tests of details.
b. The auditor plans to obtain 40% of the necessary audit evidence from tests of controls, and the remaining 60%
from substantive analytical procedures
c. The auditor plans to obtain the majority of the necessary audit evidence from tests of controls
d. Any of the above would be an appropiate audit plan if the auditor believe that control risk is high.

15. Which of the following procedures will an auditor most likely perform for year end confirmations when the auditor did not
received replies to second requests?
a. Review the cash receipts journal for the month prior to year end.
b. Intensify the study of internal control concerning the revenue cycle.
c. Inspect the shipping records documenting the merchandise sold to the debtors.
d. Increased the assessed level of detection risk for the existence assertion.
16. When auditing accounts payable, auditors are usually especially concerned about the
a. existence and completeness objectives.
b. completeness and cutoff objectives.
c. existence and cutoff objectives.
d. existence and accuracy objectives.

17. Which of the following is an inherent risk relating to inventory?

a. Inventory is easily transportable.
b. Inventory may become obsolete because of technological advances
c. Inventory is often returned by customers, so care must be taken to separately identify returned merchandise,
check it for quality, and record it at net realizble value.
d. All of the above.

18. The main disadvantage of nonstatistical sampling over statisticaal sampling is the inability, when using nonstatistical, in
a. Justify the acceptance or rejection of the population
b. Use random selection in drawing the sample.
c. Calculate allowance for sampling risk for a measureable level of risk.
d. Explicitly state the upper misstatement level.

19. To test the effectiveness of controls over asset impairment, the auditor could perform which of the following procedures?
a. Perform analytical procedures
b. Send confirmation to the management specialist who performed work related to the impairment
c. Inqure of management as to its process for determining assessment impairment.
d. Inspect the asset for potential impairment.

20. When an acquisition is on an FOB origin basis, the inventory and related accounts payable must be recorded in the
current period if the goods were
a. received prior to the balance sheet date.
b. shipped prior to the balance sheet date.
c. both shipped and received prior to the balance sheet date.
d. paid for in advance.

CASES (Choose 2 of 3 questions, you may answer the questions in Bahasa Indonesia)
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