Exam 8: Audit Planning and Analytical Procedures

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Lewis Corporation has a few large accounts receivable that total one million dollars,whereas Clark Corporation has many small accounts receivable that total one million dollars.Misstatement in any one account is more significant for Lewis corporation because of the concept of

(Multiple Choice)

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Question 101

Which of the following is an accurate statement regarding a public company's code of ethics?

(Multiple Choice)

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Question 102

When setting a preliminary judgment about materiality,

(Multiple Choice)

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Question 103

Staff assigned to an audit engagement must be knowledgeable about the client's industry.

(True/False)

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Question 104

A related party transaction may be indicated when another company

(Multiple Choice)

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Question 105

Because of audit risk,some CPA firms now refuse any new clients in certain high-risk industries.

(True/False)

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Question 106

Discuss four of the matters that should be specified in an engagement letter.

(Essay)

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Question 107

Why do auditors establish a preliminary judgment about materiality?

(Multiple Choice)

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Question 108

Audit standards require the auditor to consider materiality early in the audit.Which statement(s)regarding preliminary materiality are True? I. Preliminary materiality may change during the engagement. II. Preliminary materiality is the maximum amount by which the auditor believes the financials could be misstated and still not affect the decisions of reasonable users.

(Multiple Choice)

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Question 109

Which of the following would most likely not be classified as a related-party transaction?

(Multiple Choice)

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Question 110

Which of the following are major difficulties auditors face when allocating materiality to balance sheet accounts?

(Multiple Choice)

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Question 111

A 100 % audit risk is complete certainty.

(True/False)

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Question 112

Auditors perform preliminary analytical procedures to better understand the client's business and to assess client business risk.

(True/False)

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Question 113

If the total misstatement of an account is known,a sampling error still needs to be determined.

(True/False)

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Question 114

The predecessor auditor is required to respond to the request of the successor auditor for information,but the response can be limited to stating that no information will be provided when

(Multiple Choice)

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Question 115

Total estimated misstatements include known misstatements and projected misstatements plus a sampling error.

(True/False)

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Question 116

CPA firms can establish policy guidelines to help their auditors determine materiality.

(True/False)

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Question 117

What documents do auditors routinely obtain to aid in their understanding of a client's governance system? Briefly discuss each of these documents.

(Essay)

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Question 118

The primary purpose of allocating the preliminary judgment about materiality to financial statement accounts is to help the auditor decide the appropriate evidence to accumulate.

(True/False)

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Question 119

When allocating performance materiality,

(Multiple Choice)

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Question 120

Showing 101 - 120 of 147

Exam 8: Audit Planning and Analytical Procedures

Lewis Corporation has a few large accounts receivable that total one million dollars,whereas Clark Corporation has many small accounts receivable that total one million dollars.Misstatement in any one account is more significant for Lewis corporation because of the concept of

Which of the following is an accurate statement regarding a public company's code of ethics?

When setting a preliminary judgment about materiality,

Staff assigned to an audit engagement must be knowledgeable about the client's industry.

A related party transaction may be indicated when another company

Because of audit risk,some CPA firms now refuse any new clients in certain high-risk industries.

Discuss four of the matters that should be specified in an engagement letter.

Why do auditors establish a preliminary judgment about materiality?

Which of the following would most likely not be classified as a related-party transaction?

Which of the following are major difficulties auditors face when allocating materiality to balance sheet accounts?

A 100 % audit risk is complete certainty.

Auditors perform preliminary analytical procedures to better understand the client's business and to assess client business risk.

If the total misstatement of an account is known,a sampling error still needs to be determined.

The predecessor auditor is required to respond to the request of the successor auditor for information,but the response can be limited to stating that no information will be provided when

Total estimated misstatements include known misstatements and projected misstatements plus a sampling error.

CPA firms can establish policy guidelines to help their auditors determine materiality.

What documents do auditors routinely obtain to aid in their understanding of a client's governance system? Briefly discuss each of these documents.

The primary purpose of allocating the preliminary judgment about materiality to financial statement accounts is to help the auditor decide the appropriate evidence to accumulate.

When allocating performance materiality,

The Demand for Audit and Other Assurance Services

The Cpa Profession

Audit Reports

Professional Ethics

Legal Liability

Audit Responsibilities and Objectives

Audit Evidence

Materiality and Risk

Fraud Auditing

Internal Control and Coso Framework

Assessing Control Risk and Reporting on Internal Controls

Overall Audit Strategy and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls

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

Audit of the Acquisition and Payment Cycle: Tests of Controls,

Completing the Tests in the Acquisition and Payment Cycle:

Audit of the Payroll and Personnel Cycle

Audit of the Inventory and Warehousing Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash and Financial Instruments

Completing the Audit

Other Assurance Services

Internal and Governmental Financial Auditing and Operational Auditing

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