Exam 4: Audit Responsibilities and Objectives

The auditor has considerable responsibility for notifying users as to whether or not the statements are properly stated. This imposes on the auditor a duty to:

The cycle approach to segmenting an audit:

In testing for cutoff, the objective is to determine:

Which of the following statements BEST describes the auditor's responsibility regarding the detection of fraud?

When the auditor has assessed control risk of a particular area at a reduced level, he or she will then:

Which of the following is NOT an assertion relating to 'general presentation and disclosure- related audit objectives'?

Which one of the following is NOT a proper match of auditor's objective with management's assertion?

Which of the following is an example of the classification and understandability assertion?

Which of the following statements is NOT true?

To adequately plan the appropriate audit evidence to gather, Australian auditing standards require the auditor to gain an understanding of:

The responsibility for the preparation of the financial statements and the accompanying footnotes belongs to:

In comparing management fraud with employee fraud, the auditor's responsibility to discover the fraud is:

When the auditor knows that an illegal act exists he should:

Auditors cannot provide assurance that indirect- effect illegal acts will be detected because:

An audit process is a well- defined methodology for organising an audit to ensure that:

A financial statement audit typically consists of four phases. Identify each of these four phases of an audit and discuss the major activities performed by the auditor in each phase.

What are the responsibilities of management in regard to their declaration in the financial reports? Discuss.

Although not an insurer or guarantor of the fairness of the presentations in the statements, the auditor has considerable responsibility for notifying users whether the statements are properly stated.

The auditor gives an audit opinion on the fair presentation of the financial statements and associates his or her name with it when, on the basis of adequate evidence, the auditor concludes that the financial statements are unlikely to mislead:

When comparing the auditor's responsibility for detecting employee fraud and for detecting errors, the profession has placed the responsibility: