Question 1

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

Accepted Answer

A)  An inadequate understanding of the entity's internal control. 
B)  The close proximity to the end of the entity's fiscal year. 
C)  The conclusion that the entity's management probably lacks integrity. 
D)  An inability to perform preliminary analytical procedures before assessing control risk. 
A)  An inadequate understanding of the entity's internal control. 
B)  The close proximity to the end of the entity's fiscal year. 
C)  The conclusion that the entity's management probably lacks integrity. 
D)  An inability to perform preliminary analytical procedures before assessing control risk.

Question 2

Which of the following procedures would not be used to obtain an understanding of the entity and its environment?

Accepted Answer

A)  Observe entity operations. 
B)  Re-perform entity processes. 
C)  Verify proper evaluation of inventory subject to technological obsolescence. 
D)  Review prior year's audit documentation. 
A)  Observe entity operations. 
B)  Re-perform entity processes. 
C)  Verify proper evaluation of inventory subject to technological obsolescence. 
D)  Review prior year's audit documentation.

Question 3

Analytical procedures that are required in all audits of financial reports are analytical procedures:

Accepted Answer

A)  relevant to achieving important audit objectives related to particular assertions. 
B)  expected to be efficient and effective in the circumstances. 
C)  based on available and reliable financial data. 
D)  used in the planning and overall review stages. 
A)  relevant to achieving important audit objectives related to particular assertions. 
B)  expected to be efficient and effective in the circumstances. 
C)  based on available and reliable financial data. 
D)  used in the planning and overall review stages.

Question 4

Which of the following is not a typical analytical procedure?

Accepted Answer

A)  Study of relationships of the financial information with relevant non-financial information. 
B)  Comparison of the financial information with similar information regarding the industry in which the entity operates. 
C)  Comparison of recorded amounts of major disbursements with appropriate invoices. 
D)  Comparison of the financial information with budgeted amounts. 
A)  Study of relationships of the financial information with relevant non-financial information. 
B)  Comparison of the financial information with similar information regarding the industry in which the entity operates. 
C)  Comparison of recorded amounts of major disbursements with appropriate invoices. 
D)  Comparison of the financial information with budgeted amounts.

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

Which of the following procedures would not be used to obtain an understanding of the entity and its environment?

Analytical procedures that are required in all audits of financial reports are analytical procedures:

Which of the following is not a typical analytical procedure?

Assurance and Auditing: An Overview

The Structure of the Profession

Ethics, Independence and Corporate Governance

The Legal Liability of Auditors Part Two: Planning and Risk

Overview of Elements of the Financial Report Audit Process

Assessing Specific Business Risk

Understanding and Assessing Internal Control Part Three: Tests of Control and Tests of Details

Tests of Controls

Substantive Tests of Transactions and Balances

Audit Sampling Part Four: Completion and Communication

Completion and Review

The Auditors Reporting Obligations Part Five: Other Assurance Services

Internal Auditing

Auditing and Assurance Services in the Public Sector

Other Assurance Services and Advanced Topics

Filters

Exam 6: Planning, Understanding the Entity and Evaluating Business Risk

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

Which of the following procedures would not be used to obtain an understanding of the entity and its environment?

Analytical procedures that are required in all audits of financial reports are analytical procedures:

Which of the following is not a typical analytical procedure?

Assurance and Auditing: An Overview

The Structure of the Profession

Ethics, Independence and Corporate Governance

The Legal Liability of Auditors Part Two: Planning and Risk

Overview of Elements of the Financial Report Audit Process

Assessing Specific Business Risk

Understanding and Assessing Internal Control Part Three: Tests of Control and Tests of Details

Tests of Controls

Substantive Tests of Transactions and Balances

Audit Sampling Part Four: Completion and Communication

Completion and Review

The Auditors Reporting Obligations Part Five: Other Assurance Services

Internal Auditing

Auditing and Assurance Services in the Public Sector

Other Assurance Services and Advanced Topics

Filters