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NEW QUESTION: 1
An audit department has received anonymous information that an employee has allegedly been able to steal and cash checks sent to the organization by customers. What is the most efficient way for an auditor to determine how this type of fraud could occur and who might be the perpetrator?
A. Review the endorsements and banks of deposit on customers' canceled checks.
B. Flowchart and analyze key controls in the cash receipts process.
C. Confirm accounts payable.
D. Confirm accounts receivable.
Answer: B

NEW QUESTION: 2
An administrator can view the status of the device components by the following command: The status of the Slot3 board is Abnormal. What are the possible causes of the following faults?

A. interface card is damaged
B. ADSL telephone line failure
C. This slot is not supported in this slot of device A.
D. The pin on the backplane or motherboard is damaged. If the incorrect board is installed, the pin is tilted.
Answer: A,C,D

NEW QUESTION: 3
Which of the following statements is correct concerning significant deficiencies noted in an audit of a
nonissuer?
A. Significant deficiencies are material weaknesses in the design or operation of specific internal control
components.
B. The auditor is obligated to search for significant deficiencies that could adversely affect the entity's
ability to record and report financial data.
C. The auditor should separately identify those significant deficiencies that are considered to be material
weaknesses.
D. Significant deficiencies should not be re-communicated each year if management has acknowledged
its understanding of such deficiencies.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Choice "D" is correct. The auditor should separately identify those significant deficiencies that are
considered to be material weaknesses.
Choice "A" is incorrect. Not all significant deficiencies are material weaknesses.
Choice "B" is incorrect. The auditor is not obligated to search for significant deficiencies. The auditor is
obligated to communicate to the client any significant deficiencies identified while auditing the financial
statements.
Choice "C" is incorrect. The auditor is obligated to re-communicate significant deficiencies each year, even
if management has acknowledged its understanding of such deficiencies.