Exam 16: Advanced Topics Concerning Complex Auditing Judgments

Explore all topics

Materiality judgments are made in light of the surrounding circumstances,but need not necessarily involve both quantitative and qualitative considerations.

(True/False)

4.8/5

(35)

Question 101

U.S.accounting standards require organizations to use a two-step process to determine the impairment of goodwill.

(True/False)

4.7/5

(38)

Question 102

Assuming that other assets have been properly valued,if the market value of the reporting unit is equal to the carrying value of the assets of the reporting unit,the presumption is that goodwill has been impaired.

(True/False)

4.8/5

(40)

Question 103

The discovery of an intentional misstatement,even if immaterial,could impact the auditor's opinion on the effectiveness of the client's internal control over financial reporting.

(True/False)

4.8/5

(35)

Question 104

Material misstatements in the financial statements,including those requiring restatements strongly imply a material weakness in which of the following?

(Multiple Choice)

4.7/5

(46)

Question 105

Which of the following is subject to fair value assessment?

(Multiple Choice)

4.8/5

(40)

Question 106

Independence of the internal audit function is obtained by giving the Chief Audit Executive (CAE)unrestricted access to the board and senior management.

(True/False)

4.9/5

(33)

Question 107

Audit Program for Goodwill Impairment Testing Outline the major elements of an audit program to determine whether there is a goodwill impairment,and if there is,the extent of the goodwill impairment.

(Essay)

4.8/5

(40)

Question 108

The significant judgments related to "deferred income taxes" are subject to estimates of future profitable operations against which the deferred asset might be utilized.

(True/False)

4.8/5

(35)

Question 109

Which of the following is not included in the scope of services performed in internal auditing by a CIA?

(Multiple Choice)

4.8/5

(38)

Question 110

The iron curtain method for assessing materiality focuses on assuring that the year-end balance sheet is correct and considers the impact of prior-year uncorrected misstatements reversing in later years.

(True/False)

4.8/5

(38)

Question 111

Which of the following factors is not considered in assessing the quality of the internal audit?

(Multiple Choice)

4.9/5

(40)

Question 112

Which of the following is not a factor adding to the complexity of materiality judgments made by auditors?

(Multiple Choice)

4.9/5

(43)

Question 113

Determining materiality is based solely on quantitative factors.

(True/False)

4.8/5

(40)

Question 114

Which one of the following is not an audit procedure used when testing restructuring charges?

(Multiple Choice)

4.8/5

(37)

Question 115

All internal auditors are required to have the CIA designation in order to practice internal auditing.

(True/False)

4.8/5

(42)

Question 116

When a client has significant and nonrecurring charges to nonoperating expenses,which of the following would be the most appropriate materiality benchmark?

(Multiple Choice)

4.9/5

(38)

Question 117

The significant judgments related to debt depend on specific accounting rules (U.S.or international)that the company is following.

(True/False)

4.8/5

(44)

Question 118

The purpose of making materiality judgments is to make sure that financial statements are free of any material misstatement.

(True/False)

4.9/5

(34)

Question 119

If an acquired company remains intact after it has been acquired,it is defined as which of the following types of segments?

(Multiple Choice)

4.8/5

(28)

Question 120

Showing 101 - 120 of 131

Materiality judgments are made in light of the surrounding circumstances,but need not necessarily involve both quantitative and qualitative considerations.

U.S.accounting standards require organizations to use a two-step process to determine the impairment of goodwill.

Assuming that other assets have been properly valued,if the market value of the reporting unit is equal to the carrying value of the assets of the reporting unit,the presumption is that goodwill has been impaired.

The discovery of an intentional misstatement,even if immaterial,could impact the auditor's opinion on the effectiveness of the client's internal control over financial reporting.

Material misstatements in the financial statements,including those requiring restatements strongly imply a material weakness in which of the following?

Which of the following is subject to fair value assessment?

Independence of the internal audit function is obtained by giving the Chief Audit Executive (CAE)unrestricted access to the board and senior management.

Audit Program for Goodwill Impairment Testing Outline the major elements of an audit program to determine whether there is a goodwill impairment,and if there is,the extent of the goodwill impairment.

The significant judgments related to "deferred income taxes" are subject to estimates of future profitable operations against which the deferred asset might be utilized.

Which of the following is not included in the scope of services performed in internal auditing by a CIA?

The iron curtain method for assessing materiality focuses on assuring that the year-end balance sheet is correct and considers the impact of prior-year uncorrected misstatements reversing in later years.

Which of the following factors is not considered in assessing the quality of the internal audit?

Which of the following is not a factor adding to the complexity of materiality judgments made by auditors?

Determining materiality is based solely on quantitative factors.

Which one of the following is not an audit procedure used when testing restructuring charges?

All internal auditors are required to have the CIA designation in order to practice internal auditing.

When a client has significant and nonrecurring charges to nonoperating expenses,which of the following would be the most appropriate materiality benchmark?

The significant judgments related to debt depend on specific accounting rules (U.S.or international)that the company is following.

The purpose of making materiality judgments is to make sure that financial statements are free of any material misstatement.

If an acquired company remains intact after it has been acquired,it is defined as which of the following types of segments?

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

Professional Auditing Standards and the Audit Opinion Formulation Process

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

Other Services Provided by Audit Firms

Filters