Exam 14: Activities Required in Completing a Quality Audit

Management responsibilities Explain how management explicitly asserts their confidence and responsibility over the financial statements of the company.

(Essay)

4.8/5

(35)

Question 41

When it is discovered that an important audit procedure was not performed,the SEC imposes sanctions against the audit firm responsible.

(True/False)

4.9/5

(37)

Question 42

In evaluating the reasonableness of an estimate,the auditor would not normally concentrate on which of the following factors and assumptions?

(Multiple Choice)

4.8/5

(37)

Question 43

The auditor's expectations in final analytical procedures must be more precise than those for substantive analytics.

(True/False)

4.8/5

(36)

Question 44

Which of the following is false regarding the use of an audit checklist for disclosures?

(Multiple Choice)

4.9/5

(46)

Question 45

Dual-dating opinions Describe the concept and the purpose of dual-dating an audit report.

(Essay)

4.8/5

(41)

Question 46

Adjustments In your audit of Lomar Company for the calendar year 2014,you find a number of items that you believe represent possible adjustments to the company's books.Management does not want to make any adjustments. REQUIRED: Assuming that Lomar is a public company describe how the adjustments might impact your audit report on internal control over financial reporting.

(Essay)

4.8/5

(37)

Question 47

The auditor should consider the historical experience of the client in making past estimates.

(True/False)

4.8/5

(40)

Question 48

Which of the following is false regarding the management letter?

(Multiple Choice)

4.9/5

(31)

Question 49

After completing the audit report of Blair Corporation,but before delivering the audit report to the client,a tornado demolished the main production facility.In this case,what option is available to the auditor other than dual dating the report?

(Multiple Choice)

4.8/5

(30)

Question 50

Which of the following are categories that do not reflect the contingent nature of losses and the guiding criteria organized around probability of outcomes as provided by the FASB?

(Multiple Choice)

4.8/5

(44)

Question 51

Audit firm portfolio management decisions are not important in achieving audit quality.

(True/False)

4.9/5

(35)

Question 52

The signing officers for the certifications under the Sarbanes-Oxley Act are typically the controller and the treasurer of the company.

(True/False)

4.9/5

(33)

Question 53

If a client makes payments to a middle-man who uses the funds to obtain corporate tax refunds for the client from government officials,this is not considered a violation of the Foreign Corrupt Practices Act of 1977 (FCPA).

(True/False)

5.0/5

(30)

Question 54

Type II subsequent events Provide two examples of a Type II subsequent event and explain how these events would be treated in the financial statements.

(Essay)

4.8/5

(40)

Question 55

The familiarity threat is the most relevant issue for mandatory partner or audit firm rotation.

(True/False)

4.8/5

(32)

Question 56

Some auditors may be reluctant to issue a going-concern audit opinion because it may hasten the failure of the client company.

(True/False)

4.9/5

(37)

Question 57

FASB has set forth four categories of potential losses that can be reasonably estimated.

(True/False)

4.8/5

(42)

Question 58

When evaluating accounting estimates,the auditor would not concentrate on which of the following key factors and assumptions?

(Multiple Choice)

4.8/5

(38)

Question 59

Which of the following procedurea is not performed as part of an engagement quality review?

(Multiple Choice)

4.8/5

(43)

Question 60

Showing 41 - 60 of 184

Management responsibilities Explain how management explicitly asserts their confidence and responsibility over the financial statements of the company.

When it is discovered that an important audit procedure was not performed,the SEC imposes sanctions against the audit firm responsible.

In evaluating the reasonableness of an estimate,the auditor would not normally concentrate on which of the following factors and assumptions?

The auditor's expectations in final analytical procedures must be more precise than those for substantive analytics.

Which of the following is false regarding the use of an audit checklist for disclosures?

Dual-dating opinions Describe the concept and the purpose of dual-dating an audit report.

The auditor should consider the historical experience of the client in making past estimates.

Which of the following is false regarding the management letter?

After completing the audit report of Blair Corporation,but before delivering the audit report to the client,a tornado demolished the main production facility.In this case,what option is available to the auditor other than dual dating the report?

Which of the following are categories that do not reflect the contingent nature of losses and the guiding criteria organized around probability of outcomes as provided by the FASB?

Audit firm portfolio management decisions are not important in achieving audit quality.

The signing officers for the certifications under the Sarbanes-Oxley Act are typically the controller and the treasurer of the company.

If a client makes payments to a middle-man who uses the funds to obtain corporate tax refunds for the client from government officials,this is not considered a violation of the Foreign Corrupt Practices Act of 1977 (FCPA).

Type II subsequent events Provide two examples of a Type II subsequent event and explain how these events would be treated in the financial statements.

The familiarity threat is the most relevant issue for mandatory partner or audit firm rotation.

Some auditors may be reluctant to issue a going-concern audit opinion because it may hasten the failure of the client company.

FASB has set forth four categories of potential losses that can be reasonably estimated.

When evaluating accounting estimates,the auditor would not concentrate on which of the following key factors and assumptions?

Which of the following procedurea is not performed as part of an engagement quality review?

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

Audit Reports on Financial Statements

Advanced Topics Concerning Complex Auditing Judgments

Other Services Provided by Audit Firms

Filters