Question 1

Which of the following is an audit procedure in response to assessed risks?

Accepted Answer

A) Making changes to the nature, timing, or extent of audit procedures to obtain more persuasive evidence 
B) Developing an understanding of the entity's control environment 
C) Designing and implementing appropriate responses to financial statements 
D) Changing the recalculating procedures applied in financial statements 
A) Making changes to the nature, timing, or extent of audit procedures to obtain more persuasive evidence 
B) Developing an understanding of the entity's control environment 
C) Designing and implementing appropriate responses to financial statements 
D) Changing the recalculating procedures applied in financial statements

Question 2

Analytical procedures _______.

Accepted Answer

A) are evaluations of financial information through analysis of plausible relationships among both financial and non-financial data 
B) are evaluations of financial information through analysis of plausible relationships using financial data only 
C) are evaluations of financial information through analysis of plausible relationships using non-financial data only 
D) are optional, and generally unnecessary if the system of internal control is strong 
A) are evaluations of financial information through analysis of plausible relationships among both financial and non-financial data 
B) are evaluations of financial information through analysis of plausible relationships using financial data only 
C) are evaluations of financial information through analysis of plausible relationships using non-financial data only 
D) are optional, and generally unnecessary if the system of internal control is strong

Question 3

An example of a qualitative factor auditors will consider when determining sample size is _______.

Accepted Answer

A) the accounts receivable turnover ratio 
B) the days in receivables ratio 
C) the percentage of bad debt expense 
D) significant turnover in the accounts receivable department 
A) the accounts receivable turnover ratio 
B) the days in receivables ratio 
C) the percentage of bad debt expense 
D) significant turnover in the accounts receivable department

Question 4

If during risk assessment auditors have identified risks of material misstatement due to fraud, _______.

Accepted Answer

A) they may consider not changing the timing of audit procedures 
B) they may consider changing the timing of audit procedures 
C) the auditors should confront the employee(s) in question 
D) the auditors should immediately report this to the SEC 
A) they may consider not changing the timing of audit procedures 
B) they may consider changing the timing of audit procedures 
C) the auditors should confront the employee(s) in question 
D) the auditors should immediately report this to the SEC

Question 5

All substantive audit procedures performed _______.

Accepted Answer

A) are approved by client management beforehand 
B) are documented in the working papers 
C) are documented in invoices sent to the client's legal counsel 
D) should be done before any testing of internal control 
A) are approved by client management beforehand 
B) are documented in the working papers 
C) are documented in invoices sent to the client's legal counsel 
D) should be done before any testing of internal control

Question 6

The types of substantive procedures discussed in this chapter include _______.

Accepted Answer

A) analytical procedures 
B) substantive tests to follow-up on notable items identified when performing audit data analytics 
C) tests of details of transactions and balances including audit data analytics (AD
A)  used as a substantive test 
D) All of these answer choices are correct. 
A) analytical procedures 
B) substantive tests to follow-up on notable items identified when performing audit data analytics 
C) tests of details of transactions and balances including audit data analytics (AD
A)  used as a substantive test 
D) All of these answer choices are correct.

Question 7

Assertions about presentation and disclosure typically include _______.

Accepted Answer

A) completeness, accuracy and valuation, and classification and understandability 
B) existence, rights and obligations, and cutoff 
C) cutoff, presentation, and disclosure 
D) cutoff, accuracy, and valuation 
A) completeness, accuracy and valuation, and classification and understandability 
B) existence, rights and obligations, and cutoff 
C) cutoff, presentation, and disclosure 
D) cutoff, accuracy, and valuation

Question 8

Assertions about classes of transactions and events typically include _______.

Accepted Answer

A) occurrence, cutoff, and completeness 
B) existence, rights, and obligations 
C) existence, rights, and cutoff 
D) completeness, accuracy, and valuation 
A) occurrence, cutoff, and completeness 
B) existence, rights, and obligations 
C) existence, rights, and cutoff 
D) completeness, accuracy, and valuation

Which of the following is an audit procedure in response to assessed risks?

Analytical procedures _______.

An example of a qualitative factor auditors will consider when determining sample size is _______.

If during risk assessment auditors have identified risks of material misstatement due to fraud, _______.

All substantive audit procedures performed _______.

The types of substantive procedures discussed in this chapter include _______.

Assertions about presentation and disclosure typically include _______.

Assertions about classes of transactions and events typically include _______.

Introduction and Overview of Audit and Assurance

Professionalism, Ethics and Legal Liability

Risk Assessment Part Iaudit Risk and Audit Strategy

Risk Assessment Part Iiunderstanding the Client

Audit Evidence

Understanding of the Clients System of Internal Controls

Data Analyticsoverview and Application

Risk Responseperforming Tests of Controls

Risk Responseaudit Sampling for Substantive Testing

Auditing the Revenue Cycle

Auditing the Purchases Cycle and Payroll Cycle

Auditing Cash, Inventory, Investing and Financing Activities

Completing the Audit

Reporting on the Audit

Filters

Exam 9: Risk Responseperforming Substantive Procedures

Which of the following is an audit procedure in response to assessed risks?

Analytical procedures _______.

An example of a qualitative factor auditors will consider when determining sample size is _______.

If during risk assessment auditors have identified risks of material misstatement due to fraud, _______.

All substantive audit procedures performed _______.

The types of substantive procedures discussed in this chapter include _______.

Assertions about presentation and disclosure typically include _______.

Assertions about classes of transactions and events typically include _______.

Introduction and Overview of Audit and Assurance

Professionalism, Ethics and Legal Liability

Risk Assessment Part Iaudit Risk and Audit Strategy

Risk Assessment Part Iiunderstanding the Client

Audit Evidence

Understanding of the Clients System of Internal Controls

Data Analyticsoverview and Application

Risk Responseperforming Tests of Controls

Risk Responseaudit Sampling for Substantive Testing

Auditing the Revenue Cycle

Auditing the Purchases Cycle and Payroll Cycle

Auditing Cash, Inventory, Investing and Financing Activities

Completing the Audit

Reporting on the Audit

Filters