Question 1

State the three main reasons why it is essential that working papers be thoroughly reviewed by another member of the audit firm at the completion of the audit.

Accepted Answer

1. To evaluate the performance of inexpe

Question 2

There are often a large number of immaterial errors discovered that do not require an adjustment at the time they are found. How should these errors be dealt with by the auditor?

Accepted Answer

A)  Since these items are individually immaterial, the auditor would not recommend adjusting entries to the client. 
B)  Since there are a large number of these, the auditor would recommend adjusting entries to the client. 
C)  The auditor must combine the individually immaterial errors and evaluate whether the combined amount is material. 
D)  The auditor would never combine these individually immaterial amounts because that would mix apples and oranges. 
A)  Since these items are individually immaterial, the auditor would not recommend adjusting entries to the client. 
B)  Since there are a large number of these, the auditor would recommend adjusting entries to the client. 
C)  The auditor must combine the individually immaterial errors and evaluate whether the combined amount is material. 
D)  The auditor would never combine these individually immaterial amounts because that would mix apples and oranges.

Question 3

A) Discuss the purposes of performing analytical procedures during the audit completion phase.
B) State the two purposes of the client representation letter.

Accepted Answer

A)Analytical procedures performed during

Question 4

Whenever subsequent events are used to evaluate the amounts included in the statements, care must be taken to distinguish between conditions that existed at the balance sheet date and those that came into being after the end of the year. The subsequent information should not be incorporated directly into the statements if the conditions causing the change in valuation

Accepted Answer

A)  did not take place until after year-end. 
B)  took place before year-end. 
C)  occurred both before and after year-end. 
D)  are reimbursable through insurance policies. 
A)  did not take place until after year-end. 
B)  took place before year-end. 
C)  occurred both before and after year-end. 
D)  are reimbursable through insurance policies.

Question 5

One of the purposes of a client representation letter is to

Accepted Answer

A)  reduce the amount of audit procedures performed by the auditor. 
B)  document the responses from management to inquiries about various aspects of the audit. 
C)  serve as audit evidence for the accuracy of the contingent liabilities. 
D)  reduce the detection risk. 
A)  reduce the amount of audit procedures performed by the auditor. 
B)  document the responses from management to inquiries about various aspects of the audit. 
C)  serve as audit evidence for the accuracy of the contingent liabilities. 
D)  reduce the detection risk.

State the three main reasons why it is essential that working papers be thoroughly reviewed by another member of the audit firm at the completion of the audit.

There are often a large number of immaterial errors discovered that do not require an adjustment at the time they are found. How should these errors be dealt with by the auditor?

A) Discuss the purposes of performing analytical procedures during the audit completion phase. B) State the two purposes of the client representation letter.

One of the purposes of a client representation letter is to

The Demand for Audit and Other Assurance Services

The Public Accounting Profession and Audit Quality

Legal Liability

Professional Judgment and Ethics

Audit Responsibilities and Objectives

Client Acceptance and Planning the Audit

Materiality and Risk

Internal Controls and Control Risk

Audit Evidence

Audit Strategy and Audit Program

Audit Sampling Concepts

Audit of the Revenue Cycle

Audit of the Acquisition and Payment Cycle

Audit of the Inventory and Distribution Cycle

Audit of the Human Resources and Payroll Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash Balances

Audit Reports on Financial Statements

Other Assurance and Nonassurance Services

Filters

Exam 18: Completing the Audit

State the three main reasons why it is essential that working papers be thoroughly reviewed by another member of the audit firm at the completion of the audit.

There are often a large number of immaterial errors discovered that do not require an adjustment at the time they are found. How should these errors be dealt with by the auditor?

A) Discuss the purposes of performing analytical procedures during the audit completion phase. B) State the two purposes of the client representation letter.

One of the purposes of a client representation letter is to

The Demand for Audit and Other Assurance Services

The Public Accounting Profession and Audit Quality

Legal Liability

Professional Judgment and Ethics

Audit Responsibilities and Objectives

Client Acceptance and Planning the Audit

Materiality and Risk

Internal Controls and Control Risk

Audit Evidence

Audit Strategy and Audit Program

Audit Sampling Concepts

Audit of the Revenue Cycle

Audit of the Acquisition and Payment Cycle

Audit of the Inventory and Distribution Cycle

Audit of the Human Resources and Payroll Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash Balances

Audit Reports on Financial Statements

Other Assurance and Nonassurance Services

Filters