Question 1

Which of the following is an incorrect statement concerning one of the field work standards?

Accepted Answer

A)  Audit planning includes the development of audit strategies. 
B)  Audit planning is aimed primarily at effectiveness, with little effect on efficiency. 
C)  Understanding of the internal control structure is necessary in order to plan the audit. 
D)  Proper supervision is essential because major portions of the audit are often executed by staff assistants with limited experience. 
E)  The auditor must have a reasonable basis, in the form of gathered evidence, for expressing an opinion. 
A)  Audit planning includes the development of audit strategies. 
B)  Audit planning is aimed primarily at effectiveness, with little effect on efficiency. 
C)  Understanding of the internal control structure is necessary in order to plan the audit. 
D)  Proper supervision is essential because major portions of the audit are often executed by staff assistants with limited experience. 
E)  The auditor must have a reasonable basis, in the form of gathered evidence, for expressing an opinion.

Question 2

Data are verifiable when two or more qualified people, working independently, reach similar conclusions from an examination of the data. Verifiability is mainly concerned with the availability of evidence attesting to the validity of the information being considered.
What are the challenging aspects involved in verifying a client's allowance for doubtful accounts, the net realizable value of inventory and impairment test to fixed assets and goodwill?

Accepted Answer

These are examples of how management and

Question 3

The scope paragraph in the standard audit report uses all of the following terms except:

Accepted Answer

A)  generally accepted auditing standards. 
B)  conclusive basis. 
C)  materiality. 
D)  significant estimates. 
E)  examining evidence. 
A)  generally accepted auditing standards. 
B)  conclusive basis. 
C)  materiality. 
D)  significant estimates. 
E)  examining evidence.

Question 4

SAS 82, Consideration of Fraud in a Financial Statement Audit, states that the auditor's interest specifically relates to fraudulent acts that cause material misstatements in financial statements.

Accepted Answer

A) True 
 B)False

Which of the following is an incorrect statement concerning one of the field work standards?

The scope paragraph in the standard audit report uses all of the following terms except:

SAS 82, Consideration of Fraud in a Financial Statement Audit, states that the auditor's interest specifically relates to fraudulent acts that cause material misstatements in financial statements.

Auditing and the Public Accounting

Professional Ethics

Auditors Legal Liability

Overview of the Audit Process

Audit Evidence, Audit Objectives,

Accepting the Engagement and

Materiality Decisions and Performing Analytical Procedures

Audit Risk, Including the Risk of Fraud

Understanding Internal Controls

Audit Procedures in Response to Assessed Risks: Tests of Controls

Audit Procedures in Response to Assessed Risks: Substantive Tests

Audit Sampling in Substantive Tests

Auditing the Revenue Cycle

Auditing the Expenditure Cycle

Auditing the Production and

Auditing the Investing and

Auditing Investments and

Completing the Audit and Postaudit

Attest and Assurance Services, and Related Reports

Internal, Operational, and

Filters

Exam 2: Financial Statement Audits and

Which of the following is an incorrect statement concerning one of the field work standards?

The scope paragraph in the standard audit report uses all of the following terms except:

SAS 82, Consideration of Fraud in a Financial Statement Audit, states that the auditor's interest specifically relates to fraudulent acts that cause material misstatements in financial statements.

Auditing and the Public Accounting

Professional Ethics

Auditors Legal Liability

Overview of the Audit Process

Audit Evidence, Audit Objectives,

Accepting the Engagement and

Materiality Decisions and Performing Analytical Procedures

Audit Risk, Including the Risk of Fraud

Understanding Internal Controls

Audit Procedures in Response to Assessed Risks: Tests of Controls

Audit Procedures in Response to Assessed Risks: Substantive Tests

Audit Sampling in Substantive Tests

Auditing the Revenue Cycle

Auditing the Expenditure Cycle

Auditing the Production and

Auditing the Investing and

Auditing Investments and

Completing the Audit and Postaudit

Attest and Assurance Services, and Related Reports

Internal, Operational, and

Filters