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

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An auditor has withdrawn from an audit engagement of a publicly held company after finding fraud that may materially affect the financial statements.The auditor should set forth the reasons and findings in correspondence with the

(Multiple Choice)

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Question 61

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

(Multiple Choice)

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Question 62

Hawkins requested permission to communicate with the predecessor auditor and review certain portions of the predecessor auditor's working papers.The prospective client's refusal to permit this will bear directly on Hawkins' decision concerning the

(Multiple Choice)

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Question 63

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

(Multiple Choice)

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Question 64

Evaluating a prospective client requires which of the following steps?

(Multiple Choice)

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Question 65

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

(Multiple Choice)

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Question 66

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

(Essay)

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Question 67

When a CPA is approached to perform an audit for the first time,the CPA should make inquiries of the predecessor auditor.This is a necessary procedure because the predecessor may be able to provide the successor with information that will assist the successor in determining

(Multiple Choice)

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Question 68

Which of the following is an example of a related party transaction?

(Multiple Choice)

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Question 69

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

(Multiple Choice)

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Question 70

Name and describe three supervisory activities that should be performed by the engagement partner and other engagement team members performing supervisory activities.

(Essay)

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Question 71

Define the engagement letter and discuss its importance.

(Essay)

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Question 72

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.

(True/False)

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Question 73

An independent auditor finds that Holdaway Corporation occupies office space,at no charge,in an office building owned by a shareholder.This finding likely indicates the existence of

(Multiple Choice)

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Question 74

Showing 61 - 74 of 74

An auditor has withdrawn from an audit engagement of a publicly held company after finding fraud that may materially affect the financial statements.The auditor should set forth the reasons and findings in correspondence with 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

Hawkins requested permission to communicate with the predecessor auditor and review certain portions of the predecessor auditor's working papers.The prospective client's refusal to permit this will bear directly on Hawkins' decision concerning the

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

Evaluating a prospective client requires which of the following steps?

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

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

When a CPA is approached to perform an audit for the first time,the CPA should make inquiries of the predecessor auditor.This is a necessary procedure because the predecessor may be able to provide the successor with information that will assist the successor in determining

Which of the following is an example of a related party transaction?

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

Name and describe three supervisory activities that should be performed by the engagement partner and other engagement team members performing supervisory activities.

Define the engagement letter and discuss its importance.

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.

An independent auditor finds that Holdaway Corporation occupies office space,at no charge,in an office building owned by a shareholder.This finding likely indicates the existence of

An Introduction to Assurance and Financial Statement Auditing

The Financial Statement Auditing Environment

Risk Assessment

Evidence and Documentation

Internal Control in a Financial Statement Audit

Auditing Internal Control Over Financial Reporting

Audit Sampling: An Overview and Application to Tests of Controls

Audit Sampling: An Application to Substantive Tests of Account Balances

Auditing the Revenue Process

Auditing the Purchasing Process

Auditing the Human Resource Management Process

Auditing the Inventory Management Process

Auditing the Financinginvesting Process: Prepaid Expenses, Intangible Assets, and Property, Plant, and Equipment

Auditing the Financinginvesting Process: Long-Term Liabilities, Stockholders Equity, and Income Statement Accounts

Auditing the Financinginvesting Process: Cash and Investments

Completing the Audit Engagement

Reports on Audited Financial Statements

Professsional Conduct,Independence,and Quality Control

Legal Liability

Assurance,Attestation,amd Internal Auditing Services-professional Judgement Module

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