1. Unit 7 Assignment
Search using individual internet research and complete an essay
(in at least 400 words), that investigates a cultural group in your
desired field (Business). Describe what the Business feild is
like in your own words with support from any outside source
information you have found. Be sure to cite and reference in
APA format any outside sources you have used.
Directions: Please use the headings below (other than the
introduction heading) to create your paper. This paper should
address each of the following topics about the profession you
want to work in after you graduate. Under each heading are
specific areas that you can address in that section. Please do not
leave the italicized notes below in your paper.
Introduction
Include an introduction to the paper
Language and Behaviors
Language would focus on these elements in terms of an industry
culture. For example, is there a special
vocabulary or terminology used for the profession?
Behaviors – For example, what type of demeanor is
expected? Are there body language expectations?
Attitudes and Beliefs
What are the main ethics rules of the profession?
What beliefs does the profession focus on as a whole?
Values and Interest
What are the core values of the profession? How does
this support the attitudes and beliefs of the profession?
Education and Trainings
What types of trainings or certifications are needed to continue
in the profession?
Are you required to have a specific level of college

2. degree?
Do you need to renew a license or certification every
several years?
Tools and Equipment used
What types of tools and/or equipment are required for the
job?
Do you need training to use these?
Interactions with others
Who are others that you will work with in the field? What types
of interactions will you have?
Conclusion
Wrap- up the main ideas in the paper
QUIZ #2 – ACCT 422‐ Auditing – SPRING 2017
There are 26 questions on this Quiz. Please attempt all
questions. Record your answers on a
separate sheet(s) and submit the file into your Assignment folde
r for Quiz #2.
The following questions concern persuasiveness of evidence. C
hoose the best response.
1.
Which of the following types of documentary evidence should t
he auditor consider to be the most
reliable?
a. A sales invoice issued by the client and supported by

3. a delivery receipt from an outside
trucker.
b.
Confirmation of an account payable balance mailed by and retur
ned directly to the auditor.
c.
A check, issued by the company and bearing the payee’s endors
ement, that is included with
the bank statements mailed directly to the auditor.
d.
An audit schedule prepared by the client’s controller and review
ed by the client’s treasurer.
2.
The most reliable type of audit evidence that an auditor can obta
in is
a. Physical examination by the auditor.
b. Calculations by the auditor from company records.
c. Confirmations received directly from third parties.
d. External documents.
3. Audit evidence can come
in different forms with different degrees of persuasiveness. Whi
ch of the
following is the least persuasive type of evidence?
a. Vendor’s invoice.
b. Bank statement obtained from the client.
c. Computations made by the auditor.
d. Pre‐numbered sales invoices.

4. 4.
Which of the following is the least persuasive documentation in
support of an auditor’s opinion?
a.
Schedules of details of physical inventory counts conducted by t
he client.
b. Notation of inferences drawn from ratios and trends.
c.
Notation of appraisers’ conclusions documented in the auditor’s
files.
d.
Lists of negative confirmation requests for which no response w
as received by the auditor.
QUIZ #2 – ACCT 422‐ Auditing – SPRING 2017
PAGE 2
Please write a sentence or two that responds to the
following seven (7) questions concerning the
reliability of evidence:
5.
Why is confirmation normally more reliable evidence than askin
g the client?
6. When would a confirmation NOT be highly reliable?
7. Under what circumstances is the physical observation of
inventory considered relatively unreliable
evidence?

5. 8. Why is a re‐performance test used?
9. What are one example of relatively reliable
documentation and one example of less reliable
documentation? .
10. When does the qualification and experience of the
client’s representative make a significant
difference in the reliability of the evidence?
11.
When would analytical procedures be used? Please provide one
example of an analytical procedure.
The following three questions pertain to client acceptance. Choo
se the best response.
12.
In assessing whether to accept a client for an audit engagement,
a CPA should consider
Client Business Risk Acceptable Audit Risk
a. Yes Yes
b. Yes No
c. No Yes
d. No No
13. When approached to perform an audit for the first
time, the CPA should make inquiries of the
predecessor auditor. This is a necessary procedure because the p
redecessor may be able to provide

6. the successor with information that will assist the successor in d
etermining whether
a. The predecessor’s work should be used.
b. The company follows the policy of rotating its auditors.
c.
In the predecessor’s opinion internal control of the company has
been satisfactory.
d. The engagement should be accepted.
QUIZ #2 – ACCT 422‐ Auditing – SPRING 2017
PAGE 3
14. What is the responsibility of a successor auditor with
respect to communicating with the
predecessor auditor in connection with a prospective new audit
client?
a.
The successor auditor has no responsibility to contact the prede
cessor auditor.
b. The successor auditor should obtain permission
from the prospective client to contact the
predecessor auditor.
c.
The successor auditor should contact the predecessor regardless
of whether the prospective

7. client authorizes contact.
d. The successor auditor need not contact the predecessor
if the successor is aware of all
available relevant facts.
The following questions deal with materiality. Choose the best
response.
15.
Which one of the following statements is correct concerning the
concept of materiality?
a.
Materiality is determined by reference to guidelines established
by the AICPA.
b. Materiality depends only on the dollar amount of an
item relative to other items in the
financial statements.
c.
Materiality depends on the nature of an item rather than the doll
ar amount.
d. Materiality is a matter of professional judgement.
The following three questions concern materiality and risk. Ch
oose the best response.
16.
Edison Corporation has a few large accounts receivable that tota
l $1,400,000. Victor Corporation has
a great number of small accounts receivable that also
total $1,400,000. The importance of a

8. misstatement in any one account is therefore greater for Edison
than for Victor. This is an example
of the auditor’s concept of
a. Materiality.
b. Comparative analysis.
c. Reasonable assurance.
d. Relative risk.
17. Which of the following elements ultimately determines
the specific auditing procedures that are
necessary in the circumstances to afford a reasonable basis for a
n opinion?
a. Auditor judgment.
b. Materiality.
c. Inherent risk.
d. Reasonable assurance.
QUIZ #2 – ACCT 422‐ Auditing – SPRING 2017
PAGE 4
18.
Which of the following best describes the element of inherent ri
sk that underlies the application of
generally accepted auditing standards, specifically the standards

9. of field work and reporting?
a. Cash audit work may have to be carried out
in a more conclusive manner than inventory
audit work.
b. Intercompany transactions are usually subject to
less detailed scrutiny than arm’s length
transactions with outside parties.
c. Inventories may require more attention by the auditor
on an engagement for a
merchandising enterprise than on an engagement for a public uti
lity.
d. The scope of the audit need not be expanded
if misstatements that arouse suspicion of
fraud are of relatively insignificant amounts.
The remaining questions deal with tests of controls. Choose the
best response.
19.
Which of the following statements about tests of controls is mos
t accurate?
a. Auditing procedures cannot concurrently provide both
evidence of the effectiveness of
internal control procedures and evidence required for substantiv
e tests.
b.
Tests of controls include observations of the proper segregation

10. of duties.
c.
Tests of controls provide direct evidence about monetary missta
tements in transactions.
d.
Tests of controls ordinarily should be performed as of the balan
ce sheet date or during the
period subsequent to that date.
20.
Which of the following would be least likely to be included in a
n auditor’s tests of controls?
a. Documentation.
b. Observation.
c. Inquiry.
d. Confirmation
21. The two phases of the auditor’s involvement with
internal control are sometimes called
“understanding and assessment” and “tests of controls.” In the t
ests of controls phase, the auditor
attempts to obtain
a.
A reasonable degree of assurance that the client’s internal contr
ols are operating effectively
on a consistent basis throughout the year.
b. Sufficient, competent evidential matter to afford a
reasonable basis for the auditor’s

11. opinion.
c. Assurances that informative disclosures in the financial
statements are reasonably
adequate.
d.
Knowledge and understanding of the client’s prescribed procedu
res and methods.
QUIZ #2 – ACCT 422‐ Auditing – SPRING 2017
PAGE 5
22.
Which of the following is ordinarily considered a test of control
audit procedure?
a. Sending confirmation letters to banks.
b. Counting and listing cash on hand.
c. Examining signatures on checks.
d.
Preparing reconciliations of bank accounts as of the balance she
et date.
23.
A factory foreman at Stevens Company discharged an hourly wo
rker but did not notify the payroll
department. The foreman then forged the worker’s signature on

12. time cards and work tickets and,
when giving out the checks, diverted the payroll checks drawn
from the discharged worker to his
own use. The most effective procedure for preventing this activi
ty is to
a.
Require written authorization for all employees added to or rem
oved from the payroll.
b.
Have a paymaster who has no other payroll responsibility distri
bute the payroll checks.
c.
Have someone other than persons who prepare or distribute the
payroll obtain custody of
unclaimed payroll checks.
d. From time to time, rotate persons distributing the payroll.
24.
The CPA reviews Peter Company’s payroll procedures. An exam
ple of an internal control deficiency
is to assign to a department supervisor the responsibility for
a. Distributing payroll checks to subordinate employees.
b. Reviewing and approving time reports for subordinates.
c. Interviewing applicants for subordinate positions before
hiring is done by the personnel
department.
d.
Initiating requests for salary adjustments for subordinate emplo

13. yees.
25. Effective internal control over the purchasing of
raw materials should usually include all of the
following procedures except
a.
Systematic reporting of product changes that will affect raw mat
erials.
b.
Determining the need for the raw materials prior to preparing th
e purchase order.
c. Obtaining third‐party, written quality and quantity
reports prior to payment for the raw
materials.
d. Obtaining financial approval prior to making a commitment.
QUIZ #2 – ACCT 422‐ Auditing – SPRING 2017
PAGE 6
26. Budd, the purchasing agent of Lake Hardware
Wholesalers, has a relative who owns a retail
hardware store. Budd arranged for hardware to be delivered by
manufacturers to the retail store on
a COD basis, thereby enabling his relative to buy at Lake’s who

14. lesale prices. Budd was probably able
to accomplish this because of Lake’s poor internal control over.
a. Purchase requisitions
b. Cash receipts.
c. Perpetual inventory records.
d. Purchase orders.