Exam 14: Activities Required in Completing a Quality Audit

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When a subsequent event provides evidence about conditions that existed at the balance sheet date, what is the best course of action for the auditor to follow?

(Multiple Choice)

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Question 121

Multiple internal control deficiencies in the same cycle may actually decrease the likelihood of misstatement in that cycle.

(True/False)

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Question 122

If the auditor concludes that there may be a going-concern problem with the client, which of the following is the best course of action for the auditor to follow?

(Multiple Choice)

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Question 123

Audit firm portfolio management decisions are not important in achieving audit quality.

(True/False)

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Question 124

Property and casualty insurance premiums are examples of estimates found on financial statements.

(True/False)

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Question 125

Which of the following is not an indicator of a potential going-concern problem?

(Multiple Choice)

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Question 126

Where would the auditor make mention of issues noted during audit procedures that are not of audit significance?

(Multiple Choice)

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Question 127

A culture that encourages auditors to seek consultation with other members of the audit firm will be more likely to result in auditors who will acquiesce to inappropriate or aggressive client preferences.

(True/False)

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Question 128

The date of the audit opinion of Upton Industries, Inc. reads: March 7, 2014 except for Note D, as to which the date is March 12, 2014. What is this an example of?

(Multiple Choice)

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Question 129

After an audit report is issued, the auditor discovers through a peer review that an important audit procedure has been omitted. In this case, what should the auditor do?

(Multiple Choice)

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Question 130

If the auditor failed to confirm receivables when that should have been done and it may be too late to confirm now, what should the auditor do?

(Multiple Choice)

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Question 131

Which of the following is not a typical analytical procedure for the completion of the audit?

(Multiple Choice)

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Question 132

Assessing disclosures does not require reasonable assurance of which of the following?

(Multiple Choice)

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Question 133

Management letters to clients. What is a management letter and how does it differ from a management representation letter?

(Essay)

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Question 134

Which of the following is not a purpose of the management representation letter?

(Multiple Choice)

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Question 135

Which one of the following is not an example of an additional procedure that typically relates to the discovery of subsequent events?

(Multiple Choice)

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Question 136

Which of the following is false regarding the use of an audit checklist for disclosures?

(Multiple Choice)

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Question 137

Some auditors may be reluctant to issue a going-concern audit opinion because it may hasten the failure of the client company.

(True/False)

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Question 138

If an experienced reviewer who was not a part of the audit team, but who has appropriate competence, independence, integrity, and objectivity, performs an independent quality review, this is referred to as a reoccurring partner review.

(True/False)

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Question 139

The auditor is responsible for evaluating the likelihood of a client continuing as a going concern for a reasonable period of time. What is considered to be a reasonable time period?

(Multiple Choice)

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Question 140

Showing 121 - 140 of 184

When a subsequent event provides evidence about conditions that existed at the balance sheet date, what is the best course of action for the auditor to follow?

Multiple internal control deficiencies in the same cycle may actually decrease the likelihood of misstatement in that cycle.

If the auditor concludes that there may be a going-concern problem with the client, which of the following is the best course of action for the auditor to follow?

Audit firm portfolio management decisions are not important in achieving audit quality.

Property and casualty insurance premiums are examples of estimates found on financial statements.

Which of the following is not an indicator of a potential going-concern problem?

Where would the auditor make mention of issues noted during audit procedures that are not of audit significance?

A culture that encourages auditors to seek consultation with other members of the audit firm will be more likely to result in auditors who will acquiesce to inappropriate or aggressive client preferences.

The date of the audit opinion of Upton Industries, Inc. reads: March 7, 2014 except for Note D, as to which the date is March 12, 2014. What is this an example of?

After an audit report is issued, the auditor discovers through a peer review that an important audit procedure has been omitted. In this case, what should the auditor do?

If the auditor failed to confirm receivables when that should have been done and it may be too late to confirm now, what should the auditor do?

Which of the following is not a typical analytical procedure for the completion of the audit?

Assessing disclosures does not require reasonable assurance of which of the following?

Management letters to clients. What is a management letter and how does it differ from a management representation letter?

Which of the following is not a purpose of the management representation letter?

Which one of the following is not an example of an additional procedure that typically relates to the discovery of subsequent events?

Which of the following is false regarding the use of an audit checklist for disclosures?

Some auditors may be reluctant to issue a going-concern audit opinion because it may hasten the failure of the client company.

If an experienced reviewer who was not a part of the audit team, but who has appropriate competence, independence, integrity, and objectivity, performs an independent quality review, this is referred to as a reoccurring partner review.

The auditor is responsible for evaluating the likelihood of a client continuing as a going concern for a reasonable period of time. What is considered to be a reasonable time period?

Auditing: Integral to the Economy

The Auditors Responsibilities Regarding Fraud and Mechanisms to Address Fraud: Regulation and Corporate Governance

Internal Control Over Financial Reporting: Responsibilities of Management and the External Auditors

Professional Liability, Auditor Judgment Frameworks, and Professional Responsibilities

Professional Auditing Standards and the Audit Opinion Formulation Process

A Framework for Audit Evidence

Planning the Audit: Identifying and Responding to the Risks of Material Misstatement

Specialized Audit Tools: Sampling and Generalized Audit Software

Auditing the Revenue Cycle

Auditing Cash and Marketable Securities

Auditing Inventory, Goods and Services, and Accounts Payable: the Acquisition and Payment Cycle

Auditing Long-Lived Assets: Acquisition, Use, Impairment, and Disposal

Auditing Debt Obligations and Stockholders Equity Transactions

Audit Reports on Financial Statements

Advanced Topics Concerning Complex Auditing Judgments

Other Services Provided by Audit Firms

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