Exam 6: Audit Responsibilities and Objectives

Which of the following statements is True regarding the distinction between general audit objectives and specific audit objectives for each class of transactions?

The annual reports of many public companies include a statement about management's responsibilities and relationship with the CPA firm.

Determining that the footnote disclosures related to long-term debt are accurate is an example of the ________ audit objective.

________ is the self-confidence to resist persuasion and to challenge assumptions or conclusions.

It is generally impractical for the auditor to obtain complete assurance about the correctness of each class of transactions.

Which of the following is an accurate statement about professional skepticism?

The Sarbanes-Oxley Act provides for criminal penalties.

When an auditor is determining what information to include in the notes to the financial statements relating to bonds payable,he is concerned with the transaction-related audit objectives.

An audit must be performed with an attitude of professional skepticism.Professional skepticism consists of two primary components: a questioning mind and

Misappropriation of assets

In testing for cutoff,the objective is to determine

One of the characteristics of professional skepticism is ________,which is the conviction to decide for oneself,rather than accepting the claims of others.

An important balance-related audit objective is realizable value.Describe the purpose of this audit objective,what it is concerned with,and give an example.

The profession has developed professional judgment frameworks that illustrate an effective decision-making process.

The detail tie-in is part of the ________ assertion for account balances.

When dealing with laws and regulations that do not have a direct effect on the financial statements,the auditor

In order to mitigate availability,the auditor should consult with others and make the opposing case.

If the auditor has obtained a reasonable level of assurance about the fair presentation of the financial statements through understanding internal control,assessing control risk,testing controls,and analytical procedures,then the auditor

________ are used as evidence to provide assurance about an account balance.

List the four phases of a financial statement audit.