Exam 6: Audit Planning, understanding the Client, assessing Risks, and Responding

Which of the following is least likely to be included in an auditor's inquiry of management while obtaining information to identify the risks of material misstatement due to fraud?

Which of the following is not a required source of information for the auditors' assessment of fraud risk?

Which situation would most likely require special audit planning by the auditors?

Which of the following is most likely to be an overall response to fraud risks identified in an audit?

Which of the following matters is generally included in an auditor's engagement letter?

As a part of the planning process,auditors develop an audit strategy,an audit plan,and a time budget. a.Describe an audit strategy and explain its purpose. b.Describe an audit plan and explain its purpose. c.Describe a time budget and explain its purpose.

Preliminary arrangements agreed to by the auditors and the client should be documented in writing by the auditors.This documentation is known as:

Which of the following is not an example of a likely adjustment in the auditors' overall audit approach when significant risk is found to exist?

Which of the following is least likely to be required on an audit?

An audit plan includes a detailed listing of the audit procedures to be performed in the verification of items in the financial statements.

Which of the following is correct concerning the PCAOB's concept of a significant account?

Which of the following is an example of fraudulent financial reporting?

Which of the following statements is accurate about "fraud risk factors" considered when conducting an audit?

The risk that the auditors' procedures will lead them to conclude that a material misstatement does not exist in an account balance when in fact such a misstatement does exist is referred to as:

According to the professional standards,auditors may document the understanding established with an audit client through a(n)   Written communication with the client Oral Communication with the client A. Yes Yes B. Yes No C. No Yes D. No No

In using the statement of cash flows to obtain an understanding of a profitable,growing company,which of the following would ordinarily be least surprising to an auditor?

Which of the following is not used by auditors to establish the completeness of recorded assets?

Preliminary arrangements with clients should be set forth in the management letter.

The auditors must consider materiality in planning an audit engagement.Materiality for planning purposes is:

Which of the following is least likely to be considered a "further audit procedure"?