Exam 6: Audit Responsibilities and Objectives

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When examining the relationships of the five cycles and general cash, the cycles have no beginning or end except at the origin or final disposition of the company.

(True/False)

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Question 141

Auditing standards make a distinction between the auditor's responsibility for searching for errors and searching for fraud.

(True/False)

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Question 142

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

(Multiple Choice)

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Question 143

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

(Multiple Choice)

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Question 144

In comparing management fraud with employee fraud, the auditor's risk of failing to discover the fraud is

(Multiple Choice)

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Question 145

List the four phases of a financial statement audit.

(Essay)

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Question 146

Which of the following statements is not correct?

(Multiple Choice)

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Question 147

Auditors have a higher degree of responsibility for detecting illegal acts that have a direct effect on the financial statements than illegal acts that do not have a direct effect on the financial statements.

(True/False)

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Question 148

In signing the quarterly and the annual financial statements filed with the Securities and Exchange Commission, management certifies the financial statements comply with the Securities Exchange Act of 1933.

(True/False)

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Question 149

An auditor should recognize that the application of auditing procedures may produce evidence indicating the possibility of errors of fraud and therefore should

(Multiple Choice)

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Question 150

The provisions of many laws and regulations affect the financial statements

(Multiple Choice)

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Question 151

________ is the tendency to make assessments by starting from an initial value and then adjusting insufficiently away from that initial value.

(Multiple Choice)

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Question 152

The objective of the audit of financial statements by an independent auditor is to verify that the financial statements are free of misstatements and accurately represent the company's financial position and results of operations.

(True/False)

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Question 153

When using the cycle approach to segmenting the audit, the reason for treating capital acquisition and repayment separately from the acquisition of goods and services is that

(Multiple Choice)

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Question 154

The starting point to effective professional judgment begins with

(Multiple Choice)

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Question 155

An audit objective focused on transactions in the sales journal is a balance-related audit objective.

(True/False)

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Question 156

Another term for misappropriation of assets is

(Multiple Choice)

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Question 157

Which of the following statements is the most correct regarding errors and fraud?

(Multiple Choice)

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Question 158

When an auditor believes that an illegal act may have occurred, the auditor should first

(Multiple Choice)

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Question 159

A suspension of judgment is the recognition that people's motivations and perceptions can lead them to provide biased or misleading information.

(True/False)

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Question 160

Showing 141 - 160 of 181

Exam 6: Audit Responsibilities and Objectives

When examining the relationships of the five cycles and general cash, the cycles have no beginning or end except at the origin or final disposition of the company.

Auditing standards make a distinction between the auditor's responsibility for searching for errors and searching for fraud.

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.

In comparing management fraud with employee fraud, the auditor's risk of failing to discover the fraud is

List the four phases of a financial statement audit.

Which of the following statements is not correct?

Auditors have a higher degree of responsibility for detecting illegal acts that have a direct effect on the financial statements than illegal acts that do not have a direct effect on the financial statements.

In signing the quarterly and the annual financial statements filed with the Securities and Exchange Commission, management certifies the financial statements comply with the Securities Exchange Act of 1933.

An auditor should recognize that the application of auditing procedures may produce evidence indicating the possibility of errors of fraud and therefore should

The provisions of many laws and regulations affect the financial statements

________ is the tendency to make assessments by starting from an initial value and then adjusting insufficiently away from that initial value.

The objective of the audit of financial statements by an independent auditor is to verify that the financial statements are free of misstatements and accurately represent the company's financial position and results of operations.

When using the cycle approach to segmenting the audit, the reason for treating capital acquisition and repayment separately from the acquisition of goods and services is that

The starting point to effective professional judgment begins with

An audit objective focused on transactions in the sales journal is a balance-related audit objective.

Another term for misappropriation of assets is

Which of the following statements is the most correct regarding errors and fraud?

When an auditor believes that an illegal act may have occurred, the auditor should first

A suspension of judgment is the recognition that people's motivations and perceptions can lead them to provide biased or misleading information.

The Demand for Audit and Other Assurance Services

The CPA Profession

Audit Reports

Professional Ethics

Legal Liability

Audit Evidence

Audit Planning and Materiality

Assessing the Risk of Material Misstatement

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, Substantive Tests of Transactions, and Accounts Payable

Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts

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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