Exam 3: Audit Evidence, Audit Planning, Analytical Procedures, Materiality and Risk

Often, auditor procedures result in significant differences being discovered by the auditor. The auditor should investigate further if:

(Short Answer)

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Question 41

Which of the following ratios is best used to assess a company's ability to meet its long- term debt obligations?

(Multiple Choice)

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Question 42

Auditors must make decisions regarding what evidence to gather and how much to accumulate. Which of the following is a decision that must be made by auditors related to evidence?

(Short Answer)

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Question 43

Which of the following statements regarding inspection is not correct?

(Multiple Choice)

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Question 44

Below are 10 documents typically examined during an audit. Classify each document as either internal or external. -Duplicate sales invoices.

(Short Answer)

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Question 45

Auditors cannot use prior year financial statement balances to establish their preliminary judgment about materiality in planning the current year's audit.

(True/False)

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Question 46

In an audit area that has a lower inherent risk, it would be prudent to:

(Multiple Choice)

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Question 47

Which of the following statements is not correct?

(Multiple Choice)

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Question 48

Which of the following is least likely to be appropriate as the basis for determining the preliminary judgment about materiality in the audit of financial statements?

(Multiple Choice)

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Question 49

Which of the following is not a primary consideration when assessing inherent risk?

(Multiple Choice)

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Question 50

Audit documentation should possess certain characteristics. Which of the following is one of the characteristics?

(Short Answer)

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Question 51

Which is usually included in an engagement letter?

(Short Answer)

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Question 52

Below are 12 audit procedures. Classify each procedure according to the following types of audit evidence: -Obtain a written statement from the client's bank stating the client's year- end balance on deposit.

(Multiple Choice)

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Question 53

Which of the following statements is correct regarding the costs involved in obtaining evidence?

(Short Answer)

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Question 54

Below are 12 audit procedures. Classify each procedure according to the following types of audit evidence: -Compute the total of repairs and maintenance for each month to determine whether any month's total was unusually large.

(Multiple Choice)

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Question 55

Below are 12 audit procedures. Classify each procedure according to the following types of audit evidence: -Calculate the ratio of cost of goods sold to sales as a test of overall reasonableness of gross margin relative to the preceding year.

(Multiple Choice)

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Question 56

It is easier and more common to implement increased evidence accumulation for inherent risk than for acceptable audit risk because:

(Multiple Choice)

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Question 57

Which of the following statements about confirmations is True?

(Multiple Choice)

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Question 58

Whenever an auditor compares client data to client- prepared budgets, there are two special concerns. Indicate if the two items below are concerns.

(Short Answer)

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Question 59

The auditor typically does not assess control risk and inherent risk for:

(Multiple Choice)

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Question 60

Showing 41 - 60 of 100

Often, auditor procedures result in significant differences being discovered by the auditor. The auditor should investigate further if:

Which of the following ratios is best used to assess a company's ability to meet its long- term debt obligations?

Auditors must make decisions regarding what evidence to gather and how much to accumulate. Which of the following is a decision that must be made by auditors related to evidence?

Which of the following statements regarding inspection is not correct?

Below are 10 documents typically examined during an audit. Classify each document as either internal or external. -Duplicate sales invoices.

Auditors cannot use prior year financial statement balances to establish their preliminary judgment about materiality in planning the current year's audit.

In an audit area that has a lower inherent risk, it would be prudent to:

Which of the following statements is not correct?

Which of the following is least likely to be appropriate as the basis for determining the preliminary judgment about materiality in the audit of financial statements?

Which of the following is not a primary consideration when assessing inherent risk?

Audit documentation should possess certain characteristics. Which of the following is one of the characteristics?

Which is usually included in an engagement letter?

Below are 12 audit procedures. Classify each procedure according to the following types of audit evidence: -Obtain a written statement from the client's bank stating the client's year- end balance on deposit.

Which of the following statements is correct regarding the costs involved in obtaining evidence?

Below are 12 audit procedures. Classify each procedure according to the following types of audit evidence: -Compute the total of repairs and maintenance for each month to determine whether any month's total was unusually large.

Below are 12 audit procedures. Classify each procedure according to the following types of audit evidence: -Calculate the ratio of cost of goods sold to sales as a test of overall reasonableness of gross margin relative to the preceding year.

It is easier and more common to implement increased evidence accumulation for inherent risk than for acceptable audit risk because:

Which of the following statements about confirmations is True?

Whenever an auditor compares client data to client- prepared budgets, there are two special concerns. Indicate if the two items below are concerns.

The auditor typically does not assess control risk and inherent risk for:

The Demand for Audit, Cpa Profession, Audit Reports and Other Assurance Services

Professional Ethics, Legal Liability, Audit Responsibilities and Objectives

Internal Control, Control Risk, Section 404 Audits, Fraud Auditing, and the Impact of Information Technology on the Audit Process

Overall Audit Strategy, Audit Program, Audit of the Sales and Collection Cycle, Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Completing the Tests in the Sales and Collection Cycle: Accounts Receivable, Audit Sampling for Tests of Details of Balances, and Audit of the Acquisition and Payment Cycle

Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts, Audit of the Payroll and Personnel Cycle, Audit of the Inventory and Warehousing Cycle

Audit of the Capital Acquisition, Repayment, Audit of Cash and Financial Instruments, and Completing the Audit

Other Assurance Services, Internal and Governmental Financial Auditing and Operations Auditing

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