Question 1

If fictitious sales were recorded and the fictitious accounts receivable were written off as bad debt expense,

Accepted Answer

A) Income would be overstated. 
B) Income would be understated. 
C) Income would not be misstated. 
D) Accounts receivable would be understated. 
A) Income would be overstated. 
B) Income would be understated. 
C) Income would not be misstated. 
D) Accounts receivable would be understated.

Question 2

This question is about the auditor's concept of materiality considered in the planning stage of the audit.
Required:
A) Define or describe the independent auditor's concept of "planning materiality."
B) Name (but do not describe or explain) three common relationships or considerations used by the auditor quantifying materiality.

Accepted Answer

A) Planning materiality is the largest a

Question 3

When there is a change in auditors, the Rules of Professional Conduct do not permit the predecessor auditor to give information to the successor auditor without explicit approval by the client.

Accepted Answer

A) True 
 B)False

Question 4

The compliance assertion is not normally listed as a separate assertion.It requires an auditor to assess:

Accepted Answer

A) How well company procedures control risk. 
B) How well company employees comply with codes of conduct. 
C) How well company personnel follow internal controls. 
D) How well a company's strategy is being implemented. 
A) How well company procedures control risk. 
B) How well company employees comply with codes of conduct. 
C) How well company personnel follow internal controls. 
D) How well a company's strategy is being implemented.

If fictitious sales were recorded and the fictitious accounts receivable were written off as bad debt expense,

When there is a change in auditors, the Rules of Professional Conduct do not permit the predecessor auditor to give information to the successor auditor without explicit approval by the client.

The compliance assertion is not normally listed as a separate assertion.It requires an auditor to assess:

Introduction to Auditing

Audit, Assurance, and Quality Control Standards

Reports on Audited Financial Statements and Audited Internal Controlt

Professional Ethics and Auditor Responsibilities

Legal Liability

Assessing Risks and Internal Control

Audit Evidence and Assurance

Control Assessment and Testing

Audit Sampling

Revenues, Receivables, and Receipts Process

Purchases, Payables, and Payments Processtrue

Production and Payroll Process

Finance and Investment Process

Completing the Audit

Other Public Accounting Services and Reports

Fraud Awareness Auditing

Filters

Exam 6: Preliminary Audit Planning: Understanding the Auditee

If fictitious sales were recorded and the fictitious accounts receivable were written off as bad debt expense,

When there is a change in auditors, the Rules of Professional Conduct do not permit the predecessor auditor to give information to the successor auditor without explicit approval by the client.

The compliance assertion is not normally listed as a separate assertion.It requires an auditor to assess:

Introduction to Auditing

Audit, Assurance, and Quality Control Standards

Reports on Audited Financial Statements and Audited Internal Controlt

Professional Ethics and Auditor Responsibilities

Legal Liability

Assessing Risks and Internal Control

Audit Evidence and Assurance

Control Assessment and Testing

Audit Sampling

Revenues, Receivables, and Receipts Process

Purchases, Payables, and Payments Processtrue

Production and Payroll Process

Finance and Investment Process

Completing the Audit

Other Public Accounting Services and Reports

Fraud Awareness Auditing

Filters