Exam 4: Audit Responsibilities and Objectives

An example of a fraudulent financial reporting is:

Fraudulent financial reporting is often called:

Balance- related audit objectives are usually applied to the ending balance in income statement accounts; transaction- related audit objectives are usually applied to transactions reflected in balance sheet accounts.

Distinguish between 'balance- related' and 'transaction- related' audit objectives. Which are more numerous?

The reason auditors accumulate evidence is to:

Professional scepticism means that the auditor should:

The completeness assertion addresses:

An audit generally provides no assurance that indirect- effect illegal acts will be detected.

Which one of the following statements is true?

ASA 240 describes auditors' responsibilities to detect fraud during an audit. In assessing the risk of fraud, identify two typical characteristics of fraudulent activity and provide an example of each.

When planning an audit, which of the following should be an overriding consideration?

'Illegal acts,' as opposed to fraud, are defined as:

When an auditor informs the client's audit committee of an illegal act discovered during an audit, it is acceptable for this communication to be either oral or written.

The objective of the ordinary examination by the independent auditor is the expression of an opinion on:

Which one of the following is NOT an example of misclassification for sales?

Which of the following is NOT one of the four phases in the audit process?

There is no distinction made by auditing standards between an auditor's responsibility for searching for errors and his responsibility for searching for fraud.

Which of the following journals would be included in all of the various audit cycles?

The audit objective of posting and summarisation is associated with the management assertion of presentation and disclosure.

Audits are conducted by performing tests of transactions and separate tests on closing balances in the balance sheet.