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NEW QUESTION: 1
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. Perform only substantive tests on inventory.
B. Assess control risk at a low level.
C. Perform both tests of controls and substantive tests on inventory.
D. Perform only tests of controls on inventory.
Answer: A
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: 2
XYZ Corp has acquired ABC Corp. XYZ operates with Multi-Org access control. Consequently XYZ Corp needs to add additional operating units. Identify the statement that describes the sequence for adding additional operating units.
A. Create the operating unit, run the replicate seed data concurrent request, create the operating unit, and create new responsibilities as necessary. And set the MO: default operating unit profile option
B. Create the operating unit, run the replicate seed data concurrent request, assign the operating unit to security Hierarchy, run security list maintenance concurrent program, create new responsibilities as necessary. And set the MO: default operating unit profile option
C. Set the MO: Operating unit profile option, run the replicate seed data concurrent request, create the operating unit, and create new responsibilities as necessary.
D. It is not possible to add additional units
E. Set the MO: security profile, run the replicate seed data concurrent request, create the operating unit, and create new responsibilities as necessary.
Answer: B

NEW QUESTION: 3

A. Option B
B. Option C
C. Option A
D. Option D
Answer: A,C