Question 1

Which of the following is NOT part of the four-step approach used by auditors to reduce assessed control risk?

Accepted Answer

A)  Identify key controls that should reduce control risk for each transaction-related audit objective. 
B)  Develop appropriate tests of controls for all internal controls that are used to reduce the preliminary assessment of control risk below maximum (key controls). 
C)  Apply the transaction-related objectives to the class of transactions being tested. 
D)  Perform analytical procedures on the transaction cycle tested. 
A)  Identify key controls that should reduce control risk for each transaction-related audit objective. 
B)  Develop appropriate tests of controls for all internal controls that are used to reduce the preliminary assessment of control risk below maximum (key controls). 
C)  Apply the transaction-related objectives to the class of transactions being tested. 
D)  Perform analytical procedures on the transaction cycle tested.

Question 2

Which of the following is an exception that is uncovered in a test of controls?

Accepted Answer

A)  justification for issuing the qualified opinion 
B)  evidence that the financial statements are materially misstated 
C)  an indication of the likelihood of misstatements in the financial statements 
D)  a financial statement misstatement 
A)  justification for issuing the qualified opinion 
B)  evidence that the financial statements are materially misstated 
C)  an indication of the likelihood of misstatements in the financial statements 
D)  a financial statement misstatement

Question 3

The type of audit report issued depends on the evidence accumulated and the audit findings.

Accepted Answer

A) True 
 B)False

Question 4

If the results of the tests of controls, substantive tests of transactions, and analytical procedures are not consistent with the prediction, the tests of details of balances will be:

Accepted Answer

A)  increased. 
B)  changed. 
C)  eliminated. 
D)  unaffected. 
A)  increased. 
B)  changed. 
C)  eliminated. 
D)  unaffected.

Question 5

The reliance placed on substantive tests in relation to the reliance placed on internal control varies in a relationship that is ordinarily:

Accepted Answer

A)  inverse. 
B)  direct. 
C)  equal. 
D)  parallel. 
A)  inverse. 
B)  direct. 
C)  equal. 
D)  parallel.

Which of the following is NOT part of the four-step approach used by auditors to reduce assessed control risk?

Which of the following is an exception that is uncovered in a test of controls?

The type of audit report issued depends on the evidence accumulated and the audit findings.

If the results of the tests of controls, substantive tests of transactions, and analytical procedures are not consistent with the prediction, the tests of details of balances will be:

The reliance placed on substantive tests in relation to the reliance placed on internal control varies in a relationship that is ordinarily:

Demand for audit and assurance services

Auditors’ legal environment

Audit quality and ethics

Audit responsibilities and objectives

Audit evidence

Audit planning and documentation

Materiality and risk

Internal control and control risk

Fraud auditing

The impact of information technology on the audit process

Audit of the sales and collection cycle: Tests of controls and substantive tests of transactions

Completing tests in the sales and collection cycle: Accounts receivable

Audit sampling

Audit of transaction cycles and financial statement balances I

Audit of transaction cycles and financial statement balances II

Completing the audit

Audit reporting

Other auditing and assurance engagements

Filters

Exam 11: Overall audit plan and audit program

Which of the following is NOT part of the four-step approach used by auditors to reduce assessed control risk?

Which of the following is an exception that is uncovered in a test of controls?

The type of audit report issued depends on the evidence accumulated and the audit findings.

If the results of the tests of controls, substantive tests of transactions, and analytical procedures are not consistent with the prediction, the tests of details of balances will be:

The reliance placed on substantive tests in relation to the reliance placed on internal control varies in a relationship that is ordinarily:

Demand for audit and assurance services

Auditors’ legal environment

Audit quality and ethics

Audit responsibilities and objectives

Audit evidence

Audit planning and documentation

Materiality and risk

Internal control and control risk

Fraud auditing

The impact of information technology on the audit process

Audit of the sales and collection cycle: Tests of controls and substantive tests of transactions

Completing tests in the sales and collection cycle: Accounts receivable

Audit sampling

Audit of transaction cycles and financial statement balances I

Audit of transaction cycles and financial statement balances II

Completing the audit

Audit reporting

Other auditing and assurance engagements

Filters