Online Access Free AA Exam Questions

Management is legally required to prepare a shipping document for all movement of hazardous materials. The document must be filed with bills of lading. Management expects 100% compliance with the procedure.
Which of the following sampling approaches would be most appropriate?

• A.Targeted sampling
• B.Discovery sampling
• C.Judgment sampling
• D.Attributes sampling

The management of Tory Bank Ltd suspects that a bank loan officer frequently made loans to fictitious companies, disbursed loan proceed to his wife's accounts, and then the loan has been written-off as irrecoverable. Some significant facts about the loan officer include
A high standard of living, explained as the result of sound investments and not taking vacations
An expensive personal car obtained through business contacts
Gasoline and repair bills submitted for an assigned company car that is higher than company average (mileage logs were submitted on a quarterly basis)
Marked annoyance with questions from auditors
The extent of loans made to fictitious borrowers by the loan officer could best be determined by

• A.Comparing current loan approval balances with those of prior years.
• B.Reviewing a representative sample of the loan officer's transactions for compliance with bank policies and procedures.
• C.Requesting positive confirmations for all outstanding loans made by the loan officer.
• D.Reviewing a representative sample of loan files for properly completed documents, such as loan agreements, credit approvals, and approval of secured loan.

Acer Ltd is a client of your firm and is seeking funding in order to expand the business. The directors have prepared profit and cash flow forecasts for the next three years ending 30 June 2016 in support of the request for funding. The company's bankers require this information to be reviewed by independent accountants and the board of directors has requested that your firm undertakes this review.
The following is an extract from an independent accountant's unmodified report on the profit and cash flow forecasts:
'Based on our examination of the evidence supporting the assumptions, nothing has come to our attention which causes us to believe that these assumptions do not provide a reasonable basis for the forecast.'
Which of the following BEST describes the type of assurance provided by this statement?

• A.Positive assurance expressed negatively
• B.High level of assurance expressed negatively
• C.Limited level of assurance expressed negatively
• D.Negative assurance expressed positively

The following is an extract from an independent accountant's unmodified report on a profit forecast:
'Based on our examination of the evidence supporting the assumptions, nothing has come to our attention which causes us to believe that these assumptions do not provide a reasonable basis for the forecast.'
Which of the following is the most appropriate type of assurance provided by this statement?

• A.Positive assurance expressed negatively
• B.High level of assurance expressed negatively
• C.Limited level of assurance expressed negatively
• D.Negative assurance expressed positively

A personnel department is responsible for processing placement agency fees for new hires. A recruiter established some bogus placement agencies and, when interviewing walk-in applicants, the recruiter would list one of the bogus agencies as referring the candidate.
A possible means of detection or deterrence is to

• A.Monitor the closeness of the relationships of recruiters with specific vendors.
• B.Require all employees to sign an annual conflict of interest statement.
• C.Verify new vendors to firms listed in a professional association catalog and/or verify the vendor name and address through the telephone book.
• D.Process all personnel agency invoices via a purchase order through the purchasing department.