Question 1

What does the effectiveness of internal controls influence?

Accepted Answer

A) Inherent risk. 
B) Control risk. 
C) Risk of material misstatement. 
D) Both B and C. 
A) Inherent risk. 
B) Control risk. 
C) Risk of material misstatement. 
D) Both B and C.

Question 2

Recalculation involves independently performing procedures or controls that were originally performed by the client,such as reperforming a bank reconciliation.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following factors affect the substantive procedures performed in an audit?

Accepted Answer

A) The subjectivity of accounting process. 
B) Size of the account. 
C) Effectiveness of the relevant controls. 
D) All of the above affect the substantive procedure that are performed. 
A) The subjectivity of accounting process. 
B) Size of the account. 
C) Effectiveness of the relevant controls. 
D) All of the above affect the substantive procedure that are performed.

Question 4

An audit must be performed by persons who can make sound judgments relating to complex accounting issues.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following would not affect an auditor's judgment concerning internal controls?

Accepted Answer

A) The assertion being tested. 
B) The design of the control. 
C) The operation of the control. 
D) The level of inherent risk. 
A) The assertion being tested. 
B) The design of the control. 
C) The operation of the control. 
D) The level of inherent risk.

Question 6

The standards of competence,independence,and due professional care are covered by what standards?

Accepted Answer

A) General standards. 
B) Standards of fieldwork. 
C) Reporting standards. 
D) None of the above. 
A) General standards. 
B) Standards of fieldwork. 
C) Reporting standards. 
D) None of the above.

Question 7

Which assertion addresses whether the financial statements items are properly classified in the financial statements?

Accepted Answer

A) Completeness. 
B) Existence. 
C) Valuation. 
D) Presentation and Disclosure. 
A) Completeness. 
B) Existence. 
C) Valuation. 
D) Presentation and Disclosure.

Question 8

Which concept is referred to as the cornerstone of auditing?

Accepted Answer

A) Due professional care. 
B) Independence. 
C) Technical training. 
D) None of the above. 
A) Due professional care. 
B) Independence. 
C) Technical training. 
D) None of the above.

Question 9

Evidence is required to be sufficient and appropriate in order to provide a reasonable basis for audit conclusions.

Accepted Answer

A) True 
 B)False

Question 10

What are the three broad types of audit procedures? What is the purpose of each test?

Accepted Answer

Risk assessment procedures.Procedures pe

Question 11

Audit phases Identify at least five steps involved in an audit.

Accepted Answer

Phase I Making Client Acceptance and Con

Question 12

The AICPA's fundamental principles can be divided into four sections: purpose of the audit,responsibility of the auditor,performance of the audit,and reporting of the results.

Accepted Answer

A) True 
 B)False

Question 13

There are nine specific actions an auditor can undertake to collect evidence.Identify each action and provide an example.

Accepted Answer

Types of A

Question 14

The PCAOB's general standards provide guidance to audit firms in selecting and training their professionals.

Accepted Answer

A) True 
 B)False

Question 15

With a dual purpose test,what is an auditor likely to do?

Accepted Answer

A) Perform a substantive procedure concurrently with a test of a control. 
B) Perform a substantive procedure concurrently with a risk assessment test. 
C) Perform a risk assessment test concurrently with a test of a control. 
D) None of the above. 
A) Perform a substantive procedure concurrently with a test of a control. 
B) Perform a substantive procedure concurrently with a risk assessment test. 
C) Perform a risk assessment test concurrently with a test of a control. 
D) None of the above.

Question 16

The AICPA,IASSB,and PCAOB have conceptually the same sets of financial statement assertions,but the technical wording varies among the standards.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following statements about the auditing standards issued by the AICPA is true?

Accepted Answer

A) The auditing standards issued by the AICPA are no longer recognized by the PCAOB. 
B) The auditing standards issued by the AICPA are no longer recognized by the profession because the AICPA voted itself out of existence. 
C) The auditing standards issued by the AICPA continue to be issued by that organization for audits of public companies. 
D) The auditing standards issued by the AICPA were used by the PCAOB as a starting point. 
A) The auditing standards issued by the AICPA are no longer recognized by the PCAOB. 
B) The auditing standards issued by the AICPA are no longer recognized by the profession because the AICPA voted itself out of existence. 
C) The auditing standards issued by the AICPA continue to be issued by that organization for audits of public companies. 
D) The auditing standards issued by the AICPA were used by the PCAOB as a starting point.

Question 18

At what level does the auditor assess the risk of material misstatement?

Accepted Answer

A) The financial statement level. 
B) The company level. 
C) The assertion level. 
D) Both A and C. 
E) All of the above. 
A) The financial statement level. 
B) The company level. 
C) The assertion level. 
D) Both A and C. 
E) All of the above.

Question 19

According to the AICPA,the purpose of an audit is to enhance the degree of confidence that users can place in the financial statement.

Accepted Answer

A) True 
 B)False

Question 20

Audit documentation is frequently called working papers.

Accepted Answer

A) True 
 B)False

What does the effectiveness of internal controls influence?

Recalculation involves independently performing procedures or controls that were originally performed by the client,such as reperforming a bank reconciliation.

Which of the following factors affect the substantive procedures performed in an audit?

An audit must be performed by persons who can make sound judgments relating to complex accounting issues.

Which of the following would not affect an auditor's judgment concerning internal controls?

The standards of competence,independence,and due professional care are covered by what standards?

Which assertion addresses whether the financial statements items are properly classified in the financial statements?

Which concept is referred to as the cornerstone of auditing?

Evidence is required to be sufficient and appropriate in order to provide a reasonable basis for audit conclusions.

What are the three broad types of audit procedures? What is the purpose of each test?

Audit phases Identify at least five steps involved in an audit.

The AICPA's fundamental principles can be divided into four sections: purpose of the audit,responsibility of the auditor,performance of the audit,and reporting of the results.

There are nine specific actions an auditor can undertake to collect evidence.Identify each action and provide an example.

The PCAOB's general standards provide guidance to audit firms in selecting and training their professionals.

With a dual purpose test,what is an auditor likely to do?

The AICPA,IASSB,and PCAOB have conceptually the same sets of financial statement assertions,but the technical wording varies among the standards.

Which of the following statements about the auditing standards issued by the AICPA is true?

At what level does the auditor assess the risk of material misstatement?

According to the AICPA,the purpose of an audit is to enhance the degree of confidence that users can place in the financial statement.

Audit documentation is frequently called working papers.

Auditing: Integral to the Economy

The Risk of Fraud and Mechanisms to Address Fraud: Regulation,corporate Governance,and Audit Quality

Internal Control Over Financial Reporting: Managements Responsibilities and Importance to the External Auditors

Professional Liability and the Need for Quality Auditor Judgments and Ethical Decisions

A Framework for Audit Evidence

Planning the Audit: Identifying and Responding to the Risks of Material Misstatement

Specialized Audit Tools: Sampling and Generalized Audit Software

Auditing the Revenue Cycle

Auditing Cash and Marketable Securities

Auditing Inventory, goods and Services, and Accounts Payable: the Acquisition and Payment Cycle

Auditing Long-Lived Assets: Acquisition, use, impairment, and Disposal

Auditing Debt Obligations and Stockholders Equity Transactions

Activities Required in Completing a Quality Audit

Audit Reports on Financial Statements

Advanced Topics Concerning Complex Auditing Judgments

Other Services Provided by Audit Firms

Filters

Exam 5: Professional Auditing Standards and the Audit Opinion Formulation Process

What does the effectiveness of internal controls influence?

Recalculation involves independently performing procedures or controls that were originally performed by the client,such as reperforming a bank reconciliation.

Which of the following factors affect the substantive procedures performed in an audit?

An audit must be performed by persons who can make sound judgments relating to complex accounting issues.

Which of the following would not affect an auditor's judgment concerning internal controls?

The standards of competence,independence,and due professional care are covered by what standards?

Which assertion addresses whether the financial statements items are properly classified in the financial statements?

Which concept is referred to as the cornerstone of auditing?

Evidence is required to be sufficient and appropriate in order to provide a reasonable basis for audit conclusions.

What are the three broad types of audit procedures? What is the purpose of each test?

Audit phases Identify at least five steps involved in an audit.

The AICPA's fundamental principles can be divided into four sections: purpose of the audit,responsibility of the auditor,performance of the audit,and reporting of the results.

There are nine specific actions an auditor can undertake to collect evidence.Identify each action and provide an example.

The PCAOB's general standards provide guidance to audit firms in selecting and training their professionals.

With a dual purpose test,what is an auditor likely to do?

The AICPA,IASSB,and PCAOB have conceptually the same sets of financial statement assertions,but the technical wording varies among the standards.

Which of the following statements about the auditing standards issued by the AICPA is true?

At what level does the auditor assess the risk of material misstatement?

According to the AICPA,the purpose of an audit is to enhance the degree of confidence that users can place in the financial statement.

Audit documentation is frequently called working papers.

Auditing: Integral to the Economy

The Risk of Fraud and Mechanisms to Address Fraud: Regulation,corporate Governance,and Audit Quality

Internal Control Over Financial Reporting: Managements Responsibilities and Importance to the External Auditors

Professional Liability and the Need for Quality Auditor Judgments and Ethical Decisions

A Framework for Audit Evidence

Planning the Audit: Identifying and Responding to the Risks of Material Misstatement

Specialized Audit Tools: Sampling and Generalized Audit Software

Auditing the Revenue Cycle

Auditing Cash and Marketable Securities

Auditing Inventory, goods and Services, and Accounts Payable: the Acquisition and Payment Cycle

Auditing Long-Lived Assets: Acquisition, use, impairment, and Disposal

Auditing Debt Obligations and Stockholders Equity Transactions

Activities Required in Completing a Quality Audit

Audit Reports on Financial Statements

Advanced Topics Concerning Complex Auditing Judgments

Other Services Provided by Audit Firms

Filters