Question 1

Financial report auditing can best be described as:

Accepted Answer

A)  a regulatory function that prevents the issuance of improper financial information. 
B)  a professional activity that measures and communicates financial and business data. 
C)  a discipline that attests to the results of accounting and other functional operations and data. 
D)  a branch of accounting. 
A)  a regulatory function that prevents the issuance of improper financial information. 
B)  a professional activity that measures and communicates financial and business data. 
C)  a discipline that attests to the results of accounting and other functional operations and data. 
D)  a branch of accounting.

Question 2

Which of the following is not one of the fundamental principles underlying the objective of an audit?

Accepted Answer

A)  Knowledge. 
B)  Client satisfaction. 
C)  Evidence. 
D)  Documentation. 
A)  Knowledge. 
B)  Client satisfaction. 
C)  Evidence. 
D)  Documentation.

Question 3

The highest level of assurance is provided by:

Accepted Answer

A)  compiling financial reports. 
B)  agreed-upon procedures. 
C)  review. 
D)  audit. 
A)  compiling financial reports. 
B)  agreed-upon procedures. 
C)  review. 
D)  audit.

Question 4

Which of the following is not one of the fundamental principles of professional ethics underlying an audit?

Accepted Answer

A)  Confidentiality. 
B)  Scepticism. 
C)  Integrity. 
D)  Objectivity. 
A)  Confidentiality. 
B)  Scepticism. 
C)  Integrity. 
D)  Objectivity.

Question 5

What is the general character of the work conducted in performing a forensic audit?

Accepted Answer

A)  Detecting or deterring fraudulent activity. 
B)  Providing assurance that the financial report is not materially misstated. 
C)  Identifying the causes of an entity's financial difficulties. 
D)  Offering an opinion on the reliability of the specific assertions made by management. 
A)  Detecting or deterring fraudulent activity. 
B)  Providing assurance that the financial report is not materially misstated. 
C)  Identifying the causes of an entity's financial difficulties. 
D)  Offering an opinion on the reliability of the specific assertions made by management.

Question 6

The primary responsibility for the adequacy of disclosures in the financial report of a publicly held company rests with the:

Accepted Answer

A)  management of the company. 
B)  partner assigned to the audit engagement. 
C)  Securities and Exchange Commission. 
D)  auditor in charge of the fieldwork. 
A)  management of the company. 
B)  partner assigned to the audit engagement. 
C)  Securities and Exchange Commission. 
D)  auditor in charge of the fieldwork.

Question 7

What best describes the concept of risk assessment that currently underpins the auditing standards?

Accepted Answer

A)  The risk that the financial report is misstated as a result of weaknesses in internal control. 
B)  The risk that the financial report is misstated because of fraud. 
C)  Developing client acceptance and continuance practices that minimise the likelihood of lawsuits against the auditor. 
D)  Whether management has systems in place to evaluate and effectively manage the entity's business risks. 
A)  The risk that the financial report is misstated as a result of weaknesses in internal control. 
B)  The risk that the financial report is misstated because of fraud. 
C)  Developing client acceptance and continuance practices that minimise the likelihood of lawsuits against the auditor. 
D)  Whether management has systems in place to evaluate and effectively manage the entity's business risks.

Financial report auditing can best be described as:

Which of the following is not one of the fundamental principles underlying the objective of an audit?

The highest level of assurance is provided by:

Which of the following is not one of the fundamental principles of professional ethics underlying an audit?

What is the general character of the work conducted in performing a forensic audit?

The primary responsibility for the adequacy of disclosures in the financial report of a publicly held company rests with the:

What best describes the concept of risk assessment that currently underpins the auditing standards?

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

Planning, Understanding the Entity and Evaluating Business Risk

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 1: Assurance and Auditing: An Overview

Financial report auditing can best be described as:

Which of the following is not one of the fundamental principles underlying the objective of an audit?

The highest level of assurance is provided by:

Which of the following is not one of the fundamental principles of professional ethics underlying an audit?

What is the general character of the work conducted in performing a forensic audit?

The primary responsibility for the adequacy of disclosures in the financial report of a publicly held company rests with the:

What best describes the concept of risk assessment that currently underpins the auditing standards?

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

Planning, Understanding the Entity and Evaluating Business Risk

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