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NEW QUESTION: 1
This question will represent a statement, question, excerpt, or comment taken from various parts of an
auditor's documentation file. Letter choices A-P represent a list of the likely sources of the statement,
question, excerpt, or comment. Select, as the best answer for each item, the most likely source. Select
only one source for each item. Blank checks are maintained in an unlocked cabinet along with the check-
signing machine. Blank checks and the check-signing machine should be locked in separate locations to
prevent the embezzlement of funds.
A. Practitioner's report on management's assertion about an entity's compliance with specified
requirements.
B. Predecessor auditor's communication with successor auditor.
C. Auditor's communication to those charged with governance (other than with respect to significant
deficiencies in internal control).
D. Report on the application of accounting principles.
E. Letter for underwriters.
F. Management representation letter.
G. Accounts receivable confirmation request
H. Explanatory paragraph of an auditor's report on financial statements.
I. Lawyer's response to audit inquiry letter.
J. Auditor's engagement letter.
K. Successor auditor's communication with predecessor auditor.
L. Auditor's communications on significant deficiencies in internal control.
M. Partner's engagement review notes.
N. Request for bank cutoff statement.
O. Communication from those charged with governance to the auditor.
P. Audit inquiry letter to legal counsel.
Answer: L
Explanation:
Explanation/Reference:
Explanation:
Choice "B" is correct. Failure to lock blank checks and the check-signing machine in separate locations is
a significant deficiency in the design or operation of internal control that could adversely affect the fairness
of the financial statements.

NEW QUESTION: 2
Which three statements are true about a drop ship validation organization? (Choose three.)
A. It can be a Cost Organization.
B. It cannot be an item organization.
C. It can be an item organization.
D. It is not required in order to use drop shipments.
E. It is a proxy for the organization during the collections of drop ship sales orders and drop ship history.
F. It is the source for organization-item attributes when creating drop ship planned orders.
Answer: C,E,F
Explanation:
Explanation
References:

NEW QUESTION: 3
A Count Event could be used to record any of the following EXCEPT:
A. How many customers logged in
B. How many times an error code is displayed
C. How frequently visitors see an out of stock message
D. The abandoned cart amount
Answer: D