Exam 18: Auditing and Evaluating the Ais

As specified by the Audit Clarity Project, the introductory paragraph of an audit report must identify: (i) the organization, (ii) the financial statements audited, (iii) related information.

Following the model presented in the text, the second generic step in a financial statement audit is:

The text identified four areas that link AIS with auditing: critical thinking, internal control, business processes and information technology.Consider topics you have studied this term other than those four; choose one, and explain how it connects AIS with auditing.

Tim is the lead auditor on an engagement with WRT Corporation.Before starting the audit, Tim planned and reviewed the schedule with his audit team.Which of the following generally accepted audit standards did Tim uphold by planning?

The text described seven types of audits common in accounting practice.Which of the following statements about them is most true?

List five kinds of audits you are likely to encounter in your professional career.

In your own words, explain the ten generally accepted auditing standards discussed in the text.

Which of the following link accounting information systems with auditing?

In the Audit Clarity Project, the ___ explains when the standard applies in an audit engagement.

The last generic step in a financial statement audit has the strongest relationship to one of the ___ standards in GAAS.

The principles of normalization can be useful in:

Which of the following generic steps in a financial statement audit should occur last?

Which generally accepted auditing standard is indicated by each independent item below? Use each standard exactly one time.1) Charlie, the manager of an audit team, reviewed the work of inexperienced auditors closely.2) Jill refused to accept an audit engagement because her friend was CEO of the company.3) Leigh completed a risk/control matrix as part of an audit.4) Leo prepared a disclaimer of report on an audit client's financial statements.5) Marsha reviewed the background and experience of auditors in her firm as part of developing an audit team.6) Nolan determined that a client's financial statements were fairly presented in accordance with GAAP.7) Patricia noted that footnotes to the financial statements needed some improvement.8) Renee explained a change between the applications of GAAP in two successive years.9) Rich e-mailed an audit client's vendors to help determine the client's accounts payable balances.10) Sally completed a continuing education program on auditing mortgage companies.

The generic model of business process management discussed in the text is likely to be most useful in which type of audit?

Generally accepted auditing standards are divided into three groups.In which group would you find "internal control?"

The text described seven types of audits common in accounting practice.Which of the following statements about them is most true?

Analyze each statement below about the relationships between AIS and auditing.Indicate whether each statement is: (a) always true, (b) sometimes true or (c) never true.1) Flowcharts are the most useful form of systems documentation in a financial statement audit.2) Strong information technology skills are essential in every type of audit.3) A management audit requires more critical thinking skills than an investigative audit.4) Knowledge of internal controls can be important in many different types of audits.5) Because compliance audits are devoid of judgment, auditors do not need to understand the organizational environment in a government organization.

All of the following terms are associated with financial audit reports except:

Which of the following upholds at least one generally accepted auditing field work standard?

An inexperienced auditor verified the computation of depreciation on a machine, but did not actually see the machine.The auditor's actions led to a weakness in the ___ generic step of a financial statement audit.