110 年 國立政治大學會計研究所會計組《審計學》

Which of the following statements is correct concerning both an engagement to compile and an engagement to review a nonissuer's financial statements?

(A) The accountant expresses no assurance on the financial statements.
(B) The accountant should obtain a written management representation letter.
(C) The accountant need not obtain an understanding of internal control.
(D) The accountant must be independent in fact and appearance.

According to rules issued under the Sarbanes-Oxley Act, which of the following nonaudit services is an accounting firm permitted to provide for an issuer audit client without impairing the accounting firm's independence?

(A) Providing an expert opinion in order to advocate the client's interest in litigation.
(B) Providing an expert opinion in order to advocate the client's position in a regulatory investigation.
(C) Providing factual accounts in testimony explaining positions taken during the performance of any services provided to the client.
(D) Providing legal services to the client in a foreign jurisdiction.

Before accepting an audit engagement, a CPA should evaluate whether conditions exist that raise questions as to the integrity of management. Which of the following conditions most likely would raise such questions?

(A) There are significant differences between the entity's forecasted financial statements and the financial statements to be audited.
(B) The CPA will not be permitted to have access to sensitive information regarding the salaries of senior management.
(C) There have been substantial inventory write-offs just before the year end in each of the past four years.
(D) The CPA becomes aware of the existence of related party transactions while reading the draft financial statements.

Which of the following factors most likely would be considered an inherent limitation to an entity's internal control?

(A) The ineffectiveness of the entity's audit committee.
(B) Collusion of employees in circumventing internal controls.
(C) The lack of resources to monitor internal controls.
(D) The complexity of the entity's electronic order processing system.

Which of the following activities is not an element of a CPA firm's quality control system to be considered in establishing quality control policies and procedures?

(A) Deciding whether to accept or continue a client relationship.
(B) Selecting personnel for advancement who have the necessary qualifications.
(C) Assessing a client's ability to establish effective internal controls.
(D) Monitoring the effectiveness of professional development activities.

During an engagement to compile the financial statements of a nonissuer, an accountant becomes aware that management had stated land at appraised value and that, if GAAP had been followed, both the land account and stockholders' equity would have been decreased by \1$ million, a material amount.

The accountant decides to modify the standard compilation report because management will not revise the financial statements. Under these circumstances, the accountant should

(A) Issue either an adverse opinion or a qualified opinion, depending on materiality, because of the departure from GAAP.
(B) Add a separate paragraph to the accountant's report that restricts the distribution of the financial statements to "internal use only."
(C) Add a separate paragraph to the accountant's report that discloses the departure from GAAP and its effects on the financial statements.
(D) Add a separate paragraph to the accountant's report that explains the underlying purpose of recording assets at historical cost.

Mill, CPA, was engaged by a group of royalty recipients to apply agreed-upon procedures to financial data supplied by Modern Co. regarding Modern's written assertion about its compliance with contractual requirements to pay royalties.

Mill's report on these agreed-upon procedures should

(A) Disclaimer of opinion about the fair presentation of Modern's financial statements.
(B) List of the procedures performed (or reference thereto) and Mill's findings.
(C) Opinion about the effectiveness of Modern's internal control concerning royalty payments.
(D) Acknowledgment that the sufficiency of the procedures is solely Mill's responsibility.

Which of the following procedures would an auditor most likely perform to obtain evidence about the occurrence of subsequent events?

(A) Verify inventory pledged under loan agreements by confirming the details with financial institutions.
(B) Inquire about the current status of transactions that were recorded on the basis of preliminary data.
(C) Compare the financial statements being reported on with those of the prior year.
(D) Trace information from shipping documents to sales invoices and sales journal transactions.

In searching for unrecorded liabilities, an auditor most likely would examine the

(A) Cutoff bank statement for deposits recorded in the books, but not by the bank.
(B) Details of accounts receivable confirmations that are classified as "exceptions".
(C) Files of purchase requisitions for items ordered just before the year end.
(D) Receiving reports for items received before year end, but not yet recorded.

An auditor is using statistical sampling in testing whether cash disbursements were properly authorized. The sample results indicate that the sample rate of deviation plus the allowance for sampling risk exceeds the tolerable rate.

Under these circumstances, the auditor most likely would reduce the

(A) Planned reliance on the prescribed internal control.
(B) Assessed level of control risk.
(C) Planned reliance on substantive tests.
(D) Tolerable rate of deviations.

In assessing the tolerable rate of exceptions of a test of controls that was performed using statistical sampling, an auditor should consider that

(A) Deviations from pertinent controls do not affect the risk of material misstatement in the accounting records.
(B) Deviations from pertinent controls at a given rate ordinarily result in misstatements at a lower rate.
(C) When the degree of assurance desired in a sample is high, the auditor should allow for a high level of sampling risk.
(D) Increasing the number of items selected for the test of controls usually increases the tolerable rate of exceptions.

An auditor is selecting prenumbered purchase orders for testing an entity's internal control activities related to their proper approval before office equipment is ordered. The auditor is matching random numbers with the purchase order numbers to determine which purchase orders to inspect.

If a random number matches a voided purchase order, the auditor ordinarily would replace the voided purchase order with another if the voided purchase order

(A) Represents office equipment ordered and never received.
(B) Has been properly voided in the normal course of business.
(C) Represents office equipment ordered and canceled before being processed by the vendor.
(D) Has been electronically deleted from the purchase order file.

Which of the following factors most likely would heighten an auditor's concern about the risk of fraudulent financial reporting?

(A) The audit committee's approval of the initial selection of accounting principles.
(B) A lack of competition in the entity's industry, accompanied by increasing profit margins.
(C) Management's disclosure of unresolved litigation and contingent liabilities.
(D) Year-end adjustments by the entity that significantly affect financial results.

有人主張 A 公司的內部控制不良，是因為：

(A) 甲君私自成立 A 甲公司，不但沒有得到 A 公司董事會的允許，還動用 A1 公司的資產替 A 甲公司擔保，操守不佳。
(B) 甲君既是 A 公司的董事長，卻另外成立 A 甲公司，而 A 甲公司可能幫助 A 公司去拓展業務。
(C) A 公司持有 A1 公司的股票，甲君亦持有 A1 公司的股票，造成交叉持股。
(D) 甲君侵占 A 集團的資產。

有人主張 B 銀行的內部控制不良，最可能的原因是：

(A) 109年2月，借款戶 A1 公司大部分的生產線已停工，用電量已大幅減少，但 B 銀行卻渾然不知，未及時抽銀根。
(B) 109年3月初，爆出甲君掏空 A 公司的消息，B 銀行雖知悉，但 A 公司究竟不是借款戶，所以沒有及時抽銀根。
(C) B 銀行廈門分行雖握有 A 公司的股票，但竟在事發後全數被提領一空。
(D) 109年7月，A1 公司完全停工，B 銀行搬走 A1 公司廠區內的機器設備，支付租金，租用他公司的倉儲地放置機器。

台端可不可以主張 A 甲公司的內部控制良好？

(A) 可以，因為 A 甲公司不但沒有被甲君掏空，而且被甲君寵愛，取得甲君所控制 A1 公司的機器設備當作借款的抵押品。
(B) 可以，因為 A 甲公司是甲君所創，而且還不受 A 公司的節制。
(C) 不可以，因為 A 甲公司遵循法令的目標可能達不成。
(D) 不可以，因為 A 甲公司之成立沒有通過 A 公司的董事會。

以下諸陳述與 A 公司的財務報表有關，正確者有哪幾項？

I. A 公司需編製一般目的財務報表，並請會計師查核，以供不特定外部人使用。
II. 一般目的財務報表即一般用途財務報表。
III. 我國「財務報導之觀念架構」SP1.1 所指出的報導目的，只有一般用途的財務報導，沒有特定用途的財務報導。
IV. 每家公司在做特定決策時，實質上都應編製特定用途的財務報表，供特定內部人或外部人使用，A 公司也不例外。
V. A 公司的運作採區塊鏈，故財務報表不可能不實。

(A) I、II、III、IV、V
(B) I、II、III、IV
(C) I、III、IV、V
(D) I、III、V

109年9月底，金管會懲戒查帳會計師乙君，最可能的理由是：

(A) A 公司109年第二季的財務報表不實。
(B) A 公司108年第四季財務報表的查核報告不實。
(C) A 公司108年第四季的財務報表不實。
(D) 以上均是。

金管會懲戒 A 公司查帳會計師乙君，理由可以是：

(A) A1 公司的機器被挪用，舞弊發生，但乙君未參照審計準則公報第74號「查核財務報導對舞弊之責任」的規定，向主管機關舉報。
(B) A 甲公司向銀行超貸，屬於不法事項，但乙君未參照審計準則公報第72號「查核財務報表對法令遵循之考量」的規定，向主管機關舉報。
(C) 會計師乙君在承接 A 公司的委任時，因查核風險高而計收高額的查帳公費。
(D) 乙君查核 A 公司108年度財務報告，於109年3月底出具查核報告，對外公開，後於109年7月獲知 A 公司發生期後事項，但會計師並未對108年度查核報告採取適當行動，背離審計準則公報第55號「期後事項」的規定。

審計準則公報第55號「期後事項」要求會計師對已對外公開之前期報告採取適當行動，目的在：

(A) 避免財務報表使用者信賴原財務報告。
(B) 避免財務報表使用者信賴原查核報告。
(C) 更正會計師在查核前期財務報告（已對外公開者）時之故意錯誤。
(D) 更正會計師於查核尚未公開的前期財務報告之疏失。

會計師乙君於查核簽證 A 公司108年財務報表時，將現金及銀行存款之存在性列為關鍵查核事項。下列與關鍵查核事項有關之陳述，正確者有幾項？

I. 乙君與 A 公司治理單位溝通時，溝通之內容包括與現金及銀行存款之存在性有關之事項。
II. 乙君從與 A 公司治理單位溝通之多個事項中，選出與現金及銀行存款之存在性有關之事項，顯示乙君認為該事項的風險頗高。
III. 乙君認為：對本期財務報表之查核而言，現金及銀行存款之完整性也是最難查核的事項之一。
IV. 乙君認為：對 A 公司而言，現金及銀行存款之存在性，是經營風險較高之領域。
V. 乙君認為：自己查核 A 公司的現金及銀行存款，其存在性是該查核個案審計風險較高之領域。

(A) 2項
(B) 3項
(C) 4項
(D) 5項全部

A 公司掏空案爆發後，甲君失聯，A 公司的管理階層易人，由丙君掌握 A 公司的經營權，丙君並擔任發言人。

109年9月，丙君責備乙君會計師未盡專業上應有之注意，同月，金管會亦懲戒乙君會計師，金管會懲戒會計師的理由，可能是：

(A) A 公司存放大陸銀行之存款，佔其總資產的 $52\%$，雖然會計師發出函證，但對調證函的控制不佳。換言之，雖乙君有執行查核程序，但所執行的查核程序非屬有效。
(B) 丙君宣稱乙君雖承諾要協助 A 公司調查，但承諾並未兌現。
(C) 丙君想知道 A 公司過去與銀行往來的情況，向乙君索取現金日報表，但問了要了三次，乙君都沒有。
(D) 丙君懷疑乙君塗改手寫的工作底稿，塗改處雖有簽名，但工作底稿是會計師在業務上作成的文書，也不可以塗改。

以下判斷 C 機關是何機關的諸陳述中，何者最為適當？

(A) C 機關是立法院，因為根據表一只有立法院才設有兩位副秘書長。
(B) C 機關是考試院，因為根據表一只有考試院院長才有這麼高額的特別費。
(C) C 機關是監察院，因為政務委員與監察委員都是委員，監察委員是政務委員的尊稱。
(D) C 機關是行政院，因為根據表一只有行政院才設有政務委員。

承前題，判斷 C 機關是何機關，是否與審計有關？

(A) 審計毫無關係，因為民間會計師不敢去查政府機關。
(B) 與審計毫無關係，因為政府機關之職能分工，應屬政府會計之範疇，與內部控制無關；與內部控制無關，即與審計無關。
(C) 能與審計有關，因為本案涉及機關之內部稽核，而可能適用審計準則公報第72號「採用內部稽核人員之工作」。
(D) 與審計一定有關，因為進行審計工作前，要先辨認受查者是誰，當受查者不同時，組織文化不同，所需採行的審計程序也可能不同。

審計可分為內部與外部兩類，前者由外部人進行，後者由內部人進行。以下四個陳述中，最適當者為：

(A) 本案金額只有區區三千元，不可能也不應該有任何人發動審計權，不管內部審核或外部監督均不應有所動作，否則，嚴重違反重大性原則。
(B) 本案可能同時涉及內部審計及外部審計。
(C) 本案只可能涉及外部審計，由監察院會同主計人員進行。
(D) 本案只可能涉及內部審計，由審計部人員擔負內部審核之責。

本題表一之資料，係來自中華民國109年度 C 機關歲出計畫提要及分支計畫概況表。該表之格式如下：

🖼️【此處有附圖，請對照原卷】

經資門併計
單位：新臺幣千元
工作計畫名稱及編號：3203010100 一般行政
預算金額：937,084

分支計畫及用途別科目｜金額｜承辦單位｜說明
｜｜｜
｜｜｜
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以下諸陳述中，何者錯誤？

(A) 「經資門併計」的意思，是：本表列示經常門與資本門二者的情況。
(B) 工作計畫的名稱，是「一般行政」。
(C) 上表「一般行政」的金額是937,084千元，而表一的金額卻是4,768千元，二者不一致，必有錯誤。
(D) 上述表格所描述的資訊，僅與 C 機關的歲出有關，會有另外的表格揭露 C 機關的歲入資訊。

丁君赴 D 玩具店用振興券買積木送外孫，網友發現 D 玩具店在開立統一發票時，打上 C 機關的統一編號，輿論譁然。以下五陳述中，正確有幾項？

I. 輿論譁然有所不當，區區3千元，與4,768千元相比較，不到 $0.1\%$，不具重大性，何必大驚小怪。
II. 輿論譁然是媒體炒作，3千元在特別費的限額內，不必大驚小怪。
III. 輿論譁然並無不當，因為很少看見如此疼愛孫輩的高官外祖父。
IV. 輿論譁然並無不當，因為一旦輸入 C 機關的統編，即表示最終支付此筆支出的人，不是丁君，而是政府機關。
V. 輿論譁然並無不當，因為 C 機關好開統編，再加上三倍券可能洗成現金，入私人口袋。

(A) 2項
(B) 3項
(C) 4項
(D) 5項全部

下列有關發票之敘述，何者錯誤？

(A) 發票為記帳憑證，會計人員憑以記帳。
(B) 發票為原始憑證，不論組織記帳，是採用單式簿記或複式簿記，都要取得。
(C) 查核人員不論查核收入或支出，都可能會查發票。
(D) 查核人員查核發票，可以順查，也可以逆查。

在「各級政府機關特別費支用規定」下，特別費的使用範圍，有：

1、贈送婚喪喜慶之禮金、奠儀、禮品、花籃（圈）、喜幛、輓聯、中堂及匾額等支出。
2、對本機關及所屬機關人員之獎（犒）賞、慰勞（問）及餐敘等支出。
3、對外部機關（即本機關及所屬機關以外之機關）、民間團體與有關人士等之招待、餽（捐）贈及慰問等支出。

所以，有關購買玩具的支出能否報支特別費一事，以下諸陳述中何者最正確：

(A) 送給家人的積木是禮品，符合上述第一類支出，故能用特別費來報支。
(B) 上述三類支出每類均有「等」字，故能用特別費來報支。
(C) 只有少數送給公務員的禮品，才可能動用特別費來報支。
(D) 若上述三類使用範圍中，有「積木」字樣，則能報支特別費，而目前的使用範圍並無「積木」字樣。

有關能否動用公款報支購買積木的判斷，以下諸陳述中何者最正確？

(A) C 機關能在公務預算報支，因 C 機關已取得開立該機關統編之統一發票。
(B) C 機關能在公務預算報支，因 C 機關已取得開立 D 玩具店統編之統一發票。
(C) C 機關能否在公務預算報支，繫於 C 機關所取得的發票是否為表一所列人士消費之發票，只要是其本人消費，而非收集所得他人消費之發票，均可在公務預算報支。
(D) C 機關能否在公務預算報支，與丁君究竟是使用振興券或現金來支付，並無關係。

查核人員在查核企業的支出時，在下列情況中，最難發現者，是：

(A) 發票沒有抬頭。
(B) 使用他人提供的發票報銷。
(C) 發票上沒有清楚註明支出的用途或案據。
(D) 經手人既未取得統一發票又未取得收據，而是自己開具收支證明單，說明不能取得之原因。

Casa Royale, Inc., a public company, retains Ying and Company CPA to audit its financial statements and internal control. Howard Smythe, the partner in charge of the audit, drafted the following unmodified audit report:

🖼️【此處有附圖，請對照原卷】

Report of Independent Registered Public Accounting Firm (Comment a)

To the shareholders and the board of directors (Comment b) of Casa Royale, Inc.

Opinion on the Financial Statements

We have audited the accompanying balance sheets of Casa Royale, Inc. (the "Company") as of December 31, 20X7 and 20X6, the related statements of income, comprehensive income, stockholders' equity, and cash flows, for each of the three years in the period ended December 31, 20X7, and the related notes (collectively referred to as the "financial statements").

In our opinion, the financial statements present fairly, in all respects (Comment c), the financial position of the Company as of December 31, 20X7 and 20X6, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 20X7, in conformity with accounting principles generally accepted in the United States of America.

We also have audited, in accordance with standards of the Public Company Accounting Oversight Board (United States) ("PCAOB") the Company's internal control over financial reporting as of December 31, 20X7, based on Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and our report dated February 12, 20X8 expressed an unqualified opinion.

Basis for Opinion (Comment d)

These financial statements are the responsibility of the Company's management. Our responsibility is to express reasonable assurance (Comment e) on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with generally accepted auditing standards (Comment f). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of all (Comment g) misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts that are material (Comment h) to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Ying and Company CPAs (Comment i)
Phoenix Arizona

(Comment j)

Respond as to the accuracy of the following comments made by a QC review partner of the audit report:

Reviewer's Comments | Comment Is Correct (yes or no)
a. The report should not include the word "Registered." | ____
b. The report must also be addressed to management. | ____
c. The report should say in "all material respects." | ____
d. The basis for opinion section should precede the opinion section. | ____
e. "Reasonable assurance" should be replaced by "an opinion." | ____
f. "Generally accepted auditing standards" should be replaced by "the standards of the PCAOB." | ____
g. "All" should be replaced by "material." | ____
h. "Accounts that are material" should be replaced by "accounts or disclosures that are material." | ____
i. "Ying and Company" should be replaced with "Howard Smythe," the engagement partner. | ____
j. The report should include a statement of when the firm began serving as the corporation's auditor. | ____

Which of the following responses is not correct?

(A) Comment a is correct because the term "registered" is not necessary.
(B) Comment b is correct because management determines the audit fees and makes auditor selection and retention decisions.
(C) Comment d is not correct because the opinion section should precede the basis for opinion section.
(D) Comment e is correct because the terms "reasonable assurance" and "an opinion" are interchangeable in the audit reports.

Thomas Gilbert and Susan Bradley formed a professional corporation called "Financial Services Inc. — A Professional Corporation," each taking $50\%$ of the authorized ordinary shares. Gilbert is a CPA and a member of the AICPA. Bradley is a Chartered Property Casualty Underwriter (CPCU). The corporation performs auditing and tax services under Gilbert's direction and insurance services under Bradley's supervision.

One of the corporation's first audit clients was Grandtime Company. Grandtime had total assets of \600{,}000$and total liabilities of$$270{,}000$. In the course of his examination, Gilbert found that Grandtime's building, with a carrying value of$$240{,}000$, was pledged as collateral for a 10-year term note in the amount of$$200{,}000$.

The client's financial statements did not mention that the building was pledged as collateral for the 10-year term note. However, as the failure to disclose the lien did not affect either the value of the assets or the amount of the liabilities, and his examination was satisfactory in all other respects, Gilbert rendered an unmodified opinion on Grandtime's financial statements.

About two months after the date of his opinion, Gilbert learned that an insurance company was planning to loan Grandtime \150{,}000$ in the form of a first-mortgage note on the building. Realizing that the insurance company was unaware of the existing lien on the building, Gilbert had Bradley notify the insurance company of the fact that Grandtime's building was pledged as collateral for a term note.

Shortly after the events described above, Gilbert was charged with several violations of professional ethics. Which of the following is not an ethical implication of Gilbert's acts that was in violation of the AICPA Code of Professional Conduct?

(A) Gilbert may be in violation of the Integrity and Objectivity Rule which requires that a member be free of conflicts of interest in rendering professional services. The insurance aspects of the business might be considered incompatible if Gilbert was making recommendations concerning insurance coverage and selling insurance to the same firms. Also, the firm may be in violation of the Commissions and Referral Fees Rule.
(B) Gilbert's expression of an unmodified opinion on Grandtime's financial statements which did not disclose a material lien on the building asset is a violation of both Compliance with Standards Rule and the Accounting Principles Rule. The Compliance with Standards Rule provides that a member shall comply with appropriate standards when performing professional services. The third standard of reporting for audits states that "informative disclosures are to be regarded as reasonably adequate unless otherwise stated in the report." Since there was no disclosure of the business lien in the financial statements, Gilbert should have qualified his opinion. The Accounting Principles Rule requires that a member shall not express an opinion that financial statements are presented in conformity with generally accepted accounting principles if such statements contain any departure from an accounting principle promulgated by a body designated by Council to establish such principles. Generally accepted accounting principles, published by a body designated by Council, require disclosure of assets pledged as collateral for loans.
(C) Having Bradley inform the insurance company of the prior lien on Grandtime's building is a violation by Gilbert of the Confidential Client Information Rule of the Code, which enjoins a member from violating the confidential relationship between himself and his client without consent of the client. The lien should have been disclosed in Gilbert's report on Grandtime's statements, but it may not be disclosed by him independently to a third party unless the client agrees to such disclosure. However, the rule may be interpreted to preclude a CPA from correcting a previous error—in this case expressing an opinion that the financial statements were prepared in accordance with generally accepted accounting principles even though in fact they were not.
(D) One major auditing concern is that an auditor has a financial interest in a commercial corporation which performs insurance services. Under certain circumstances this is allowed, provided such interest is not material to the corporation's stockholders' equity, and the member's interest in and relation to the corporation is solely that of an investor. Certainly Gilbert's $50\%$ interest is material to Financial Services, Inc., and Gilbert's status is not that of an investor. In this respect Gilbert is in violation of the Form of Organization and Name Rule.

Auditors often observe the counting of their clients' inventories. You are working in the area of inventory with a new assistant on the audit of Jilco Inc. The assistant has the following questions concerning inventory and the observation of inventory. Your reply to his questions can be either "Yes" or "No."

a. With strong internal control, may Jilco Inc.'s inventory count be performed during the year rather than at year-end?
b. Jilco Inc. has inventory at many locations. Do we need to be present for the inventory count at all locations?
c. Should I document all my test counts in the working papers?
d. Am I correct that our observation of the counting of the inventory primarily addresses the existence of inventory, but not the completeness of the count?
e. Is it correct that, because Jilco Inc. manufactures one product, direct labor and overhead ordinarily become a part of the inventory costs?
f. Should Jilco's inventory be valued at the lower of standard cost or net realizable value?
g. Is it safe to assume that any inventory items present as "consigned in" should not be included in the client's ending inventory?
h. When I take test counts of inventory items, do my test counts eliminate the need for Jilco Inc. personnel to count those items again?
i. Do I need to count all items in Jilco Inc.'s ending inventory?
j. At the completion of the count, should I leave Jilco Inc. personnel with a copy of all my inventory test counts to help assure inventory accuracy?

Suppose $X$ = the number of "Yes" in your reply and $Y$ = the number of "No" in your reply, then $|X-Y|$ = ?

(A) $0$
(B) $2$
(C) $4$
(D) $6$

During your audit of Miles Company, you prepared the following bank transfer schedule:

🖼️【此處有附圖，請對照原卷】

MILES COMPANY
Bank Transfer Schedule
December 31, 20X1

Check Number | Bank Accounts: From | Bank Accounts: To | Amount | Date Disbursed: Books | Date Disbursed: Bank | Date Deposited: Books | Date Deposited: Bank
2020 | 1st Natl. | Suburban | \32{,}000$| 1/4 | 1/5 | 12/31 | 1/3 2021 | 1st Natl. | Capital |$$21{,}000$| 12/31 | 1/4 | 12/31 | 1/3 3271 | 2nd State | Suburban |$$6{,}700$| 1/3 | 1/5 | 1/3 | 12/30 0659 | Midtown | Suburban |$$5{,}500$ | 12/30 | 1/5 | 12/30 | 1/3

Which checks involve a kiting?

(A) Check No. 2020 and No. 2021
(B) Check No. 3271 and No. 0659
(C) Check No. 2021 and No. 0659
(D) Check No. 2020 and No. 3271

Nancy Howe, your staff assistant on the April 30, 20X2, audit of Wilcox Company, was transferred to another audit engagement before she could complete the audit of unrecorded accounts payable. Her working paper, which you have reviewed and are satisfied is complete, appears below:

🖼️【此處有附圖，請對照原卷】

Wilcox Company
Unrecorded Accounts Payable
April 30, 20X2
M-1-1

Invoice Date | Vendor and Description | Amount
— | Hill & Harper—unpaid legal fees at Apr. 30, X2 (See lawyer's letter at M-4) | $1{,}000$；$y$
Apr. 1, X2 | Drew Insurance Agency—unpaid premium at year-end on fire insurance for period Apr. 1, X2–Mar. 31, X3 (See insurance broker letter at J-1). Payment made on May 7, 20X2. | $1{,}800$；$y$
Apr. 30, X2 | Mays and Sage, Stockbrokers—advice for 100 shares of Madison Ltd. common stock (settlement date May 7, X2) | $2{,}125$；$y$
— | Lane Company—shipment received Apr. 30, X2 per receiver no. 3361 and included in Apr. 30, X2, physical inventory. Invoice not yet received (amount is per purchase order) | $5{,}863$；$y$
Total | | $10{,}788$

$y$: Examined document described.

In my opinion, the \10{,}788$ adjustment includes all material unrecorded accounts payable.

N.A.H.
May 29, X2

What is your proposed adjusting entry for the unrecorded accounts payable of Wilcox Company at April 30, 20X2 (assuming these amounts are material and do not consider income tax)?

(A) Debit: Marketable Securities $2{,}125$; Cost of Goods Sold $5{,}863$; Insurance Expense $1{,}800$; Professional Fees Expense $1{,}000$. Credit: Accounts Payable $10{,}788$.
(B) Debit: Marketable Securities $2{,}125$; Inventory $5{,}863$; Insurance Expense $1{,}800$; Professional Fees Expense $1{,}000$. Credit: Accounts Payable $10{,}788$.
(C) Debit: Marketable Securities $2{,}125$; Purchase $5{,}863$; Prepaid Insurance $1{,}650$; Insurance Expense $150$; Professional Fees Expense $1{,}000$. Credit: Accounts Payable $10{,}788$.
(D) Debit: Marketable Securities $2{,}125$; Cost of Goods Sold $5{,}863$; Prepaid Insurance $1{,}650$; Insurance Expense $150$; Professional Fees Expense $1{,}000$. Credit: Accounts Payable $10{,}788$.

What is the sum of $a+b+c+d$?

(A) -\2{,}118.18$(B)$$2{,}118.18$(C)$$0$(D)$$4{,}236.36$

What is the sum of $f+g+i+j$?

(A) -\22{,}914.70$(B)$-$8{,}026.54$(C)$$14{,}888.16$(D)$$37{,}802.86$

You are required to complete a standard unmodified opinion audit report issued for an audit of a private US company for the fiscal year ended on December 31, 2020. Begin by specifying the eight parts of the report, and then fill in the underlined empty contents of each part properly. (20 points)

1. Report title.

---

2. Audit Report address.

To the ____

---

3. ____ section

(Heading) ____

We ____ the financial statements of USA Corporation, which comprise the balance sheet as of December 31, 2020 and the related statements of income, changes in stockholders' equity, and cash flows for the year then ended, and the related notes to the financial statements.

____, the accompanying financial statements ____, in all ____ respects, the financial position of USA Corporation as of ____, and the results of its ____ and its ____ for the year then ended in accordance with ____ in the United States of America.

4. ____ section.

(Heading) ____

We ____ our audit in accordance with ____ generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report.

We are ____ of the company and have fulfilled our other ____ responsibilities, in accordance with the relevant ethical requirements related to our audit.

We believe that the ____ we have obtained is ____ and ____ to provide a basis for our ____.

5. Management's Responsibility section.

6. Auditor's Responsibilities section.

7. Signature and Address of Audit Firm.

8. Audit Report Date.

The main reason that CPAs are prohibited to charge professional fees based on the outcome of engagements is to help CPAs maintain:

(A) independence
(B) technical standards
(C) objectivity
(D) confidentiality.

Which of the following is not a commonly used test of details of balances procedures for financial instruments accounts?

(A) Physical inspection of the securities or derivative contracts.
(B) confirmation with the broker-dealer.
(C) verify proper classification in the footnotes as level 1, 2, or 3 fair value estimates.
(D) Review minutes and loan agreements for any restrictions on cash.

Which of the following audit procedures is not commonly used to search for contingent liabilities?

(A) Inquire of management (orally and in writing) about the possibility of unrecorded contingencies.
(B) Review the minutes of directors' and stockholders' meetings for indications of lawsuits or other contingencies.
(C) Review for contingent liabilities performed at the beginning and the end of the audit.
(D) Analyze legal expense for the period under audit, and review invoices and statements from legal counsel for indications of contingent liabilities.

Which of the following is an accurate statement regarding presentation and disclosure?

(A) Auditors generally set the risk as low that all required information may not be completely disclosed in the footnotes.
(B) Audit tests performed in earlier audit phases provides sufficient appropriate evidence about contingent liabilities and subsequent events.
(C) Auditors do not conduct tests of controls related to disclosures when the initial assessment of control risk is below maximum.
(D) In completing the audit phase, auditors evaluate whether the overall presentation of the financial statements and related footnotes complies with accounting standards.

Regarding the reports on controls at service organizations (SOC Reports), which of the following statements is not true?

(A) An SOC 1 report, Report on Controls at a Service Organization Relevant to User Entities' Internal Control Over Financial Reporting, is intended to meet the needs of user entities and their auditors.
(B) SOC 1 Reports are used to plan and perform audits of the user entity's financial statements by user auditors.
(C) The SOC 1 guidance for service auditors and the guidance for user auditors are both in the attestation standards.
(D) SOC 2 Reports report about controls at a service organization that affect the security, availability, and processing integrity of the systems the service organization uses to process users' data and the confidentiality and privacy of the information processed by these systems.