Exam 17: Auditing and Evaluating the Ais

The chapter identified seven types of audits you are likely to encounter in your career. Identify and discuss two similarities and two differences between investigative audits and financial audits.

Consider the audit descriptions and types paired below. Indicate with an X in the appropriate column whether the audit described is paired with the appropriate type.

The generic steps associated with business process management can be useful in:

As a processing tool in the AIS, general ledger software can be useful in:

Which of the following violates the generally accepted auditing standard indicated?

Consider the independent statements below. Organize them in three groups based on the AICPA's generally accepted auditing standards; also indicate the name of each group based on the standards.1) Bradley completed a continuing education program on auditing mortgage companies.2) Cameron completed a risk / control matrix as part of an audit.3) Elijah determined that a client's financial statements were fairly presented in accordance with GAAP.4) Elizabeth noted that footnotes to the financial statements needed some improvement.5) Jessica reviewed the background and experience of auditors in her firm as part of developing an audit team.6) Luke refused to accept an audit engagement because his friend was CEO of the company.7) Milton e-mailed an audit client's vendors to help determine the client's accounts payable balances.8) Owen, the manager of an audit team, reviewed the work of inexperienced auditors closely.9) Ryan prepared a disclaimer of opinion on an audit client's financial statements.10) Sandra explained a change between the applications of GAAP in two successive years.

Information technology skills can link auditing to accounting information systems. Which of the following tasks can be completed using only information technology?

The text described seven types of audits common in accounting practice. Which of the following statements about them is most true?

The chapter described five generic steps in a financial statement audit; it also discussed six other types of audits you may encounter in your professional career. Consider the operational audit. Based on its broad purpose and objectives, explain how you would modify the five generic financial statement audit steps for the audit type you choose.

A systems flowchart:

Which of the following organizations is most likely to be subject to a compliance audit?

As an input to the accounting information system, a properly completed sales invoice can help an auditor with which of the following financial statement assertions?

Which of the following generally accepted auditing standards suggests that an auditor should not have a financial interest in an audit client?

A government accountant suspects someone within the government is embezzling cash. Which of the following statements is most true?

In your own words, explain the AICPA's ten generally accepted auditing standards.

All of the following terms are associated with financial audit opinions except:

A clear understanding of the steps in the accounting cycle is likely to be useful in:

The text described seven types of audits common in accounting practice. Which of the following statements about them is most true?

The last generic step in a financial statement audit has the strongest relationship to one of the ___ standards in GAAS.

The AICPA's generally accepted auditing standards are divided into three groups. All of the following are standards in the "general" group except: