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NEW QUESTION: 1
Drag and drop each statement about a specific RP discovery mechanism on the left to its proper name on the right Select and Place:

Answer:
Explanation:

NEW QUESTION: 2
What is the most likely course of action that an auditor would take after determining that performing
substantive tests on inventory will take less time than performing tests of controls?
A. Assess control risk at a low level.
B. Perform both tests of controls and substantive tests on inventory.
C. Perform only substantive tests on inventory.
D. Perform only tests of controls on inventory.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Choice "C" is correct. If it would take less time to perform substantive tests than it would to perform tests of
controls, and if there is no other reason to test controls (i.e., if there is not a high degree of electronic
processing), the auditor would not be likely to test controls.
Choice "A" is incorrect. In order to assess control risk at a low level, tests of controls would need to be
performed. However, if it is more efficient to perform substantive tests, the auditor would not be likely to
test controls.
Choice "B" is incorrect. If it would take less time to perform substantive tests than it would to perform tests
of controls, and if there is no other reason to test controls (i.e., if there is not a high degree of electronic
processing), the auditor would not be likely to test controls.
Choice "D" is incorrect. Substantive procedures are always be necessary for all assertions relevant to
material transaction classes, account balances, and disclosures. Assuming inventory is material, tests of
controls alone would not be sufficient.

NEW QUESTION: 3
Which of the following pieces of information may not be contained in a tombstone advertisement under SEC rules?
A. the price of the offering
B. the name of the issuer
C. the name and address of a place where a prospectus can be obtained
D. the type of business in which the issuing firm is engaged
Answer: A
Explanation:
Explanation/Reference:
Explanation: A tombstone advertisement may not contain the price of the offering under SEC rules. The final price would not have been set at this point anyway.