Question 1

There is a direct relationship between the ________ transaction-related audit objective and the ________ balance-related audit objective.

Accepted Answer

A) occurrence;existence 
B) timing;cutoff 
C) posting and summarization;detail tie-in 
D) all of the above 
A) occurrence;existence 
B) timing;cutoff 
C) posting and summarization;detail tie-in 
D) all of the above

Question 2

When designing tests of controls and substantive tests an auditor is gathering evidence to satisfy the transaction-related audit objectives.What are the four steps the auditor would normally follow to reduce assessed control risk?

Accepted Answer

1. Apply the transaction-related audit o

Question 3

For automated controls,the auditor's procedures to determine whether the automated control has been implemented cannot also serve as the test of that control.

Accepted Answer

A) True 
 B)False

Question 4

One factor that determines the amount of additional evidence required for tests of controls is the planned reduction in control risk.

Accepted Answer

A) True 
 B)False

Question 5

Presentation and disclosure objectives are primarily addressed in the tests of details of balances phase of the audit.

Accepted Answer

A) True 
 B)False

Question 6

If no material differences are found using analytical procedures,and the auditor concludes that misstatements are not likely to have occurred,

Accepted Answer

A) other substantive tests may be reduced. 
B) it will be necessary to increase the tests of balances. 
C) it will not be necessary to perform tests of balances. 
D) it will be necessary to increase the tests of transactions. 
A) other substantive tests may be reduced. 
B) it will be necessary to increase the tests of balances. 
C) it will not be necessary to perform tests of balances. 
D) it will be necessary to increase the tests of transactions.

Question 7

The document that details the specific audit procedures for each type of test is the

Accepted Answer

A) audit strategy. 
B) audit program. 
C) audit procedure. 
D) audit risk model. 
A) audit strategy. 
B) audit program. 
C) audit procedure. 
D) audit risk model.

Question 8

At what point in the audit process are tests of details most appropriately designed?

Accepted Answer

A) plan and design audit approach 
B) perform audit tests of controls and substantive tests of transactions 
C) perform substantive analytical procedures and tests of details of balances 
D) complete the audit and issue the audit report 
A) plan and design audit approach 
B) perform audit tests of controls and substantive tests of transactions 
C) perform substantive analytical procedures and tests of details of balances 
D) complete the audit and issue the audit report

Question 9

Once set during the planning phase,the audit program cannot be revised.

Accepted Answer

A) True 
 B)False

Question 10

If tests of controls support the control risk assessment,then ________ in the audit risk model is increased.

Accepted Answer

A) planned detection risk 
B) planned inherent risk 
C) planned fraud risk 
D) planned assurance risk 
A) planned detection risk 
B) planned inherent risk 
C) planned fraud risk 
D) planned assurance risk

Question 11

Describe the five types of audit tests.Identify which of the five types are substantive tests,and which are used to reduce assessed control risk.

Accepted Answer

The five types of audit tests used to de

Question 12

Analytical procedures are the least costly type of audit test.

Accepted Answer

A) True 
 B)False

Question 13

The purpose of tests of controls is to provide reasonable assurance that the

Accepted Answer

A) accounting treatment of transactions and balances is valid and proper. 
B) internal control procedures are functioning as intended. 
C) entity has complied with GAAP disclosure requirements. 
D) entity has complied with requirements of quality control. 
A) accounting treatment of transactions and balances is valid and proper. 
B) internal control procedures are functioning as intended. 
C) entity has complied with GAAP disclosure requirements. 
D) entity has complied with requirements of quality control.

Question 14

The auditor obtained an aged list of receivables and traced the accounts to the master file,footed the schedule,and traced the amounts to the general ledger.Which balance-related audit objective was met?

Accepted Answer

A) existence 
B) cutoff 
C) detail tie-in 
D) all of the above 
A) existence 
B) cutoff 
C) detail tie-in 
D) all of the above

Question 15

Because of the high cost of tests of details of balances,auditors do not perform this type of testing unless fraud is suspected.

Accepted Answer

A) True 
 B)False

Question 16

A procedure designed to test for monetary misstatements directly affecting the correctness of financial statement balances is a

Accepted Answer

A) test of controls. 
B) substantive test. 
C) test of attributes. 
D) monetary unit sampling test. 
A) test of controls. 
B) substantive test. 
C) test of attributes. 
D) monetary unit sampling test.

Question 17

In phase IV of the audit,complete the audit and issue an audit report,there are five activities required.List below the activities.

Accepted Answer

1. perform additional tests fo

Question 18

In order to promote audit efficiency the auditor considers cost in selecting audit tests to perform.Which of the following audit tests would be the most costly?

Accepted Answer

A) substantive analytical procedures 
B) risk assessment procedures 
C) tests of controls 
D) tests of details of balances 
A) substantive analytical procedures 
B) risk assessment procedures 
C) tests of controls 
D) tests of details of balances

Question 19

The results of tests of controls and substantive tests of transactions affect the design of tests of details of balances.

Accepted Answer

A) True 
 B)False

Question 20

One of the most challenging parts of auditing is properly applying the factors that affect tests of details of balances.

Accepted Answer

A) True 
 B)False

Exam 13: Overall Audit Strategy and Audit Program

There is a direct relationship between the ________ transaction-related audit objective and the ________ balance-related audit objective.

When designing tests of controls and substantive tests an auditor is gathering evidence to satisfy the transaction-related audit objectives.What are the four steps the auditor would normally follow to reduce assessed control risk?

For automated controls,the auditor's procedures to determine whether the automated control has been implemented cannot also serve as the test of that control.

One factor that determines the amount of additional evidence required for tests of controls is the planned reduction in control risk.

Presentation and disclosure objectives are primarily addressed in the tests of details of balances phase of the audit.

If no material differences are found using analytical procedures,and the auditor concludes that misstatements are not likely to have occurred,

The document that details the specific audit procedures for each type of test is the

At what point in the audit process are tests of details most appropriately designed?

Once set during the planning phase,the audit program cannot be revised.

If tests of controls support the control risk assessment,then ________ in the audit risk model is increased.

Describe the five types of audit tests.Identify which of the five types are substantive tests,and which are used to reduce assessed control risk.

Analytical procedures are the least costly type of audit test.

The purpose of tests of controls is to provide reasonable assurance that the

The auditor obtained an aged list of receivables and traced the accounts to the master file,footed the schedule,and traced the amounts to the general ledger.Which balance-related audit objective was met?

Because of the high cost of tests of details of balances,auditors do not perform this type of testing unless fraud is suspected.

A procedure designed to test for monetary misstatements directly affecting the correctness of financial statement balances is a

In phase IV of the audit,complete the audit and issue an audit report,there are five activities required.List below the activities.

In order to promote audit efficiency the auditor considers cost in selecting audit tests to perform.Which of the following audit tests would be the most costly?

The results of tests of controls and substantive tests of transactions affect the design of tests of details of balances.

One of the most challenging parts of auditing is properly applying the factors that affect tests of details of balances.

The Demand for Audit and Other Assurance Services

The Cpa Profession

Audit Reports

Professional Ethics

Legal Liability

Audit Responsibilities and Objectives

Audit Evidence

Audit Planning and Analytical Procedures

Materiality and Risk

Fraud Auditing

Internal Control and Coso Framework

Assessing Control Risk and Reporting on Internal Controls

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

Filters

There is a direct relationship between the transaction-related audit objective and the balance-related audit objective.