Exam 17: Auditing and Evaluating the Ais

Tim is the lead auditor on an engagement with WRT Corporation. Before starting the audit, Tim planned and reviewed the schedule with his audit team. Which of the following generally accepted audit standards did Tim uphold by planning?

The terms "adverse" and "disclaimer" are most closely associated with which generally accepted auditing standard?

Consider the statements below as you answer the next question: • The chief financial officer of TNL Corporation is a certified public accountant.• OBP Corporation's internal audit manager is a certified fraud examiner.• CPQ Corporation maintains a set of systems flowcharts that describe current business processes.• DKM Corporation encrypts all data transmitted over its wireless network.Which statements relate to the second generic step in a financial statement audit?

Following the model presented in the text, the second generic step in a financial statement audit is:

List five kinds of audits you are likely to encounter in your professional career.

The AICPA's generally accepted auditing standards are divided into three groups. In which group would you find "internal control?"

In which generic step of a financial statement audit is the auditor most likely to verify the frequency of bank reconciliations?

A systems flowchart could be helpful in fulfilling which generally accepted auditing standards?

Consider the statements presented below. Choose those that would happen as part of a financial statement audit, then put them in the proper order based on the steps presented in the text. A. Check access to sensitive information and other assets. B. Consult GAO standards. C. Convert financial statements to XBRL. D. Evaluate the organization's control environment. E. Interview the CFO as a corroborative witness. F. Make recommendations for improving business processes. G. Prepare an unqualified opinion. H. Review management's resumes. I. Translate financial statements from German to English.j. Verify the existence of inventory and plant assets.

Revise each statement below so that it more clearly upholds the indicated AICPA generally accepted auditing standard.1) Training: Alexis completed an online course on professional etiquette.2) Evidence: Allison checked the employment references of an audit client's CEO as part of evaluating the CEO's credentials.3) Opinion: Ann used her own words to express an opinion on the truth of an audit client's financial statements.4) Independence: Blaine accepted an audit engagement with a firm owned by his mother-in-law.5) Professional care: Brent randomly selected auditors in his firm as part of developing an audit team.6) Internal control: Crystal used expectancy theory to assess internal control as part of an audit.7) Supervision: Lindsay, the manager of an audit team, scrutinized the work of all auditors on her team equally, regardless of their experience or the tasks they were completing.8) Consistency: Louis explained a change between the applications of GAAP in 2008 and 2011.9) Disclosure: Nicole personally prepared the footnotes for an audit client's financial statements to ensure all disclosures were properly done.10) GAAP: Ralph determined that a client's financial statements were truthfully and accurately presented in accordance with the AICPA's generally accepted auditing standards.

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

An investigative auditor wanted to assess employees' motivation for committing fraud. Which of the following tools will be most beneficial to the auditor in that task?

In ___, auditors examine a company's rules and procedures for conducting business.

A ___ determines whether the various forms of information technology in an accounting information system are producing expected results.

The text identified four areas that link AIS with auditing: critical thinking, internal control, business processes and information technology. Consider topics you have studied this term other than those four; choose one, and explain how it connects AIS with auditing.

In the first generic step of financial statement audits, the auditor should assess:

Pam is a licensed CPA; her husband, Greg, is a major shareholder in a corporation audited by Pam's firm. If Pam is involved in the audit of that firm:

Internal controls:

Which of the following generic steps in a financial statement audit should occur last?

Which of the following upholds at least one generally accepted auditing field work standard?