Exam 17: Auditing and Evaluating the Ais

Verifying the frequency of bank reconciliations and reconciling the latest bank statement are examples of actions an auditor might take in which generic steps of the financial statement audit process?

Which of the following link accounting information systems with auditing?

An inexperienced auditor verified the computation of depreciation on a machine, but did not actually see the machine. The auditor's actions led to a weakness in the ___ generic step of a financial statement audit.

An auditor is concerned that her company's purchasing process is not functioning as efficiently as possible. Which type of audit will best address her concern?

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 corporation is most likely to receive an unqualified opinion on its financial statements?

Critical thinking is important in:

As a tool for understanding human behavior, expectancy theory can be useful in:

Which type of audit is a "basket" of the other types?

The AICPA's generally accepted auditing standards are divided into three groups. Which of the following is a standard in the "reporting" group?

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 corporation will require the least amount of compliance testing?

How does the FASB Conceptual Framework link accounting information systems with auditing?

The third generic step in a financial statement audit could benefit from:

Joe was a recent graduate of Big State University's accounting program. He was assigned to an audit team managed by Pam, a licensed CPA. Based on those two statements alone, which of the following is most true?

The COSO enterprise risk management framework can be useful in:

The principles of normalization can be useful in:

A company's business processes were at the managed level of the capability maturity model in 2011 and at the optimized level of the capability maturity model in 2012. Which of the following statements is most true?

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 third generic step in a financial statement audit?

Understanding business processes can link auditing to accounting information systems. Which of the following can facilitate an understanding of business processes?

The generic model of business process management discussed in the text is likely to be most useful in which type of audit?