Exam 16: Advanced Topics Concerning Complex Auditing Judgments

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Auditors make materiality assessments to help in planning the audit evidence to obtain and in evaluating the audit evidence that was obtained.

(True/False)

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Question 121

Auditors may consider only quantitative effects and not qualitative effects in making materiality judgments.

(True/False)

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Question 122

The volume of transactions affected is one of the critical criteria in assessing identified internal control deficiencies.

(True/False)

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Question 123

Which of the following statements is true of internal auditing?

(Multiple Choice)

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Question 124

If restructuring charges are not calculated correctly, the charges can be used to fraudulently manipulate income.

(True/False)

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Question 125

In a standard audit program for goodwill impairment testing, if the original reporting unit no longer exists because operations have been fully integrated into operations of the parent company, which approach should the auditor take?

(Multiple Choice)

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Question 126

The inventory account does not require any subjective estimates by management.

(True/False)

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Question 127

Which of the following approaches for determining fair value of Level 3 assets is used by the auditor?

(Multiple Choice)

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Question 128

Which of the following reflects the scope of services performed in external auditing by a CPA?

(Multiple Choice)

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Question 129

The adjustments arising from the audit that were considered to be material should be communicated by the auditor to which of the following?

(Multiple Choice)

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Question 130

In performing substantive analytical procedures, the threshold for determining whether differences between the client's recorded balance and the auditor's expectation should be based on planning materiality.

(True/False)

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Question 131

A sensitivity analysis of changes in value based on industry and cash-flow assumptions is one of the aspects of the audit program for goodwill impairment testing.

(True/False)

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Question 132

Showing 121 - 132 of 132

Auditors make materiality assessments to help in planning the audit evidence to obtain and in evaluating the audit evidence that was obtained.

Auditors may consider only quantitative effects and not qualitative effects in making materiality judgments.

The volume of transactions affected is one of the critical criteria in assessing identified internal control deficiencies.

Which of the following statements is true of internal auditing?

If restructuring charges are not calculated correctly, the charges can be used to fraudulently manipulate income.

In a standard audit program for goodwill impairment testing, if the original reporting unit no longer exists because operations have been fully integrated into operations of the parent company, which approach should the auditor take?

The inventory account does not require any subjective estimates by management.

Which of the following approaches for determining fair value of Level 3 assets is used by the auditor?

Which of the following reflects the scope of services performed in external auditing by a CPA?

The adjustments arising from the audit that were considered to be material should be communicated by the auditor to which of the following?

In performing substantive analytical procedures, the threshold for determining whether differences between the client's recorded balance and the auditor's expectation should be based on planning materiality.

A sensitivity analysis of changes in value based on industry and cash-flow assumptions is one of the aspects of the audit program for goodwill impairment testing.

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

Activities Required in Completing a Quality Audit

Audit Reports on Financial Statements

Other Services Provided by Audit Firms

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