Exam 8: Risk Responseperforming Tests of Controls

When performing an integrated audit (to issue an opinion on the financial statements and an opinion on internal controls over financial reporting), _______.

(Multiple Choice)

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Question 81

An IT application control will be ineffective _______.

(Multiple Choice)

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Question 82

If the audit firm is performing an integrated audit for a public company, _______.

(Multiple Choice)

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Question 83

The procedure that relies on the auditor testing the physical evidence to verify that a control has been performed properly _______.

(Multiple Choice)

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Question 84

Important information obtained through inquiry _______.

(Multiple Choice)

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Question 85

Which of the following refers to a deficiency where there is more than a remote possibility that a material misstatement could occur in the financial statements due to a breakdown in the system of internal control?

(Multiple Choice)

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Question 86

An audit testing strategy that can be used to allow evidence obtained in prior audit periods to support a conclusion about IT application controls in the current audit period is known as _______.

(Multiple Choice)

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Question 87

A _______ is an observed condition that provides evidence that the control being tested did not operate as intended.

(Essay)

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Question 88

The expected rate of deviation in the population _______.

(Multiple Choice)

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Question 89

Most companies design detection controls _______.

(Multiple Choice)

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Question 90

Detection controls are those applied to each transaction that stop fraud or errors from occurring.

(True/False)

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Question 91

The _______ clearly lays out the purpose of the test of the control, the nature and extent of the work performed at an interim date, the results of the audit tests, and the auditor's conclusion about control risk.

(Multiple Choice)

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Question 92

Once auditors understand the flow of transactions, _______.

(Multiple Choice)

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Question 93

In trying to determine whether there is a need for additional tests of controls, the following factors are considered:

(Multiple Choice)

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Question 94

The two levels of internal control are entity-level controls and auditor-level controls.

(True/False)

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Question 95

Which of the following refers to a sampling technique used to reach a conclusion about a population in terms of a rate (frequency) of occurrence?

(Multiple Choice)

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Question 96

Transaction-level controls are _______.

(Multiple Choice)

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Question 97

When performing tests of controls, the auditor is making _______.

(Multiple Choice)

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Question 98

Working paper documentation includes the auditors' conclusion about _______ and the basis for their conclusion.

(Essay)

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Question 99

The more assurance the auditor wants, _______.

(Multiple Choice)

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Question 100

Showing 81 - 100 of 104

When performing an integrated audit (to issue an opinion on the financial statements and an opinion on internal controls over financial reporting), _______.

An IT application control will be ineffective _______.

If the audit firm is performing an integrated audit for a public company, _______.

The procedure that relies on the auditor testing the physical evidence to verify that a control has been performed properly _______.

Important information obtained through inquiry _______.

Which of the following refers to a deficiency where there is more than a remote possibility that a material misstatement could occur in the financial statements due to a breakdown in the system of internal control?

An audit testing strategy that can be used to allow evidence obtained in prior audit periods to support a conclusion about IT application controls in the current audit period is known as _______.

A _______ is an observed condition that provides evidence that the control being tested did not operate as intended.

The expected rate of deviation in the population _______.

Most companies design detection controls _______.

Detection controls are those applied to each transaction that stop fraud or errors from occurring.

The _______ clearly lays out the purpose of the test of the control, the nature and extent of the work performed at an interim date, the results of the audit tests, and the auditor's conclusion about control risk.

Once auditors understand the flow of transactions, _______.

In trying to determine whether there is a need for additional tests of controls, the following factors are considered:

The two levels of internal control are entity-level controls and auditor-level controls.

Which of the following refers to a sampling technique used to reach a conclusion about a population in terms of a rate (frequency) of occurrence?

Transaction-level controls are _______.

When performing tests of controls, the auditor is making _______.

Working paper documentation includes the auditors' conclusion about _______ and the basis for their conclusion.

The more assurance the auditor wants, _______.

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 Substantive Procedures

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