Question 1

Preventing errors during processing _______.

Accepted Answer

A) is an important objective of every accounting system 
B) is an optional objective of every accounting system 
C) is the responsibility of the auditor 
D) is the responsibility of the internal auditors 
A) is an important objective of every accounting system 
B) is an optional objective of every accounting system 
C) is the responsibility of the auditor 
D) is the responsibility of the internal auditors

Question 2

Reperformance _______.

Accepted Answer

A) should be delegated to the internal audit function 
B) should be the responsibility of the client's legal counsel 
C) is mandatory at every client audit 
D) is likely to be used, but would be determined by the auditor's professional judgment 
A) should be delegated to the internal audit function 
B) should be the responsibility of the client's legal counsel 
C) is mandatory at every client audit 
D) is likely to be used, but would be determined by the auditor's professional judgment

Question 3

Entity-level controls involve _______.

Accepted Answer

A) all five components of internal controls 
B) all four components of internal controls 
C) all auditor and client controls 
D) all controls recommended by the internal audit function 
A) all five components of internal controls 
B) all four components of internal controls 
C) all auditor and client controls 
D) all controls recommended by the internal audit function

Question 4

The auditor testing the effectiveness of manual follow-up to see whether items put on an exception report were appropriately cleared is an example of _______.

Accepted Answer

A) reperformance 
B) observation 
C) inquiry 
D) inspection of physical evidence 
A) reperformance 
B) observation 
C) inquiry 
D) inspection of physical evidence

Preventing errors during processing _______.

Reperformance _______.

Entity-level controls involve _______.

The auditor testing the effectiveness of manual follow-up to see whether items put on an exception report were appropriately cleared is an example of _______.

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

Exam 8: Risk Responseperforming Tests of Controls

Preventing errors during processing _______.

Reperformance _______.

Entity-level controls involve _______.

The auditor testing the effectiveness of manual follow-up to see whether items put on an exception report were appropriately cleared is an example of _______.

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