Exam 3: Audit Planning, Types of Audit Tests, and Materiality

To provide for the greatest degree of independence in performing internal audit activities, the internal audit function most likely should report to the:

Define the engagement letter and discuss its importance.

Which element(s)is/are pervasive to the application of the Principles Underlying an Audit Conducted in Accordance with GAAS particularly the Performance and Reporting sections?

In order to properly preplan the audit, the auditor must determine the engagement team requirements and ensure the independence of the audit team and audit firm.

Discuss the purposes for planning the audit and identify the steps that are performed during this phase of the engagement.

Which of the following factors most likely would lead a CPA to conclude that a potential audit engagement should be rejected?

Which of the following relatively small misstatements most likely would have a material effect on an entity's financial statements?

Which of the following is a general audit test?

Which of the following factors most likely would cause a CPA not to accept a new audit engagement?

In assessing the competence of the internal audit function, an independent CPA most likely would obtain information about the:

The element of the audit planning process most likely to be agreed upon with the client before implementation of the audit strategy is the determination of the:

Before accepting an engagement to audit a new client, a CPA is required to obtain:

Which of the following would an auditor most likely use in determining the auditor's overall materiality?

Engagement letters include all of the following except:

As generally conceived, the audit committee of a publicly held company should be made up of:

The audit committee is directly responsible for the appointment, compensation, and oversight of the work of any accounting firm employed by a public company.

The engagement partner is typically responsible for doing the detailed audit testing.

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

Which of the following would not necessarily be a related party transaction?

Under the Sarbanes-Oxley Act, the audit committee of a public company has the following requirement(s):