Exam 18: Auditing and Evaluating the Ais

A government accountant suspects someone within the government is embezzling cash.Which of the following statements is most true?

A ___ determines whether the various forms of information technology in an accounting information system are producing expected results.

Match each description on the left with the appropriate type of audit on the right.

How does the FASB Conceptual Framework link accounting information systems with auditing?

As the term is used in the Audit Clarity Project, "applicable financial reporting framework" can mean: (i) IFRS, (ii) COSO, (iii) US GAAP.

Consider the statements below as you answer the question: • The chief financial officer of TNL Corporation is a certified public accountant.• OBP Corporation's internal audit manager is a certified fraud examiner.• CPQ Corporation maintains a set of systems flowcharts that describe current business processes.• DKM Corporation encrypts all data transmitted over its wireless network.Which statements relate to the second generic step in a financial statement audit?

The COSO enterprise risk management framework can be useful in:

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

In the Audit Clarity Project, which section specifies what the auditor is trying to achieve in the audit with respect to a specific school of ethical thought?

In the Audit Clarity Project, requirements:

Pam is a licensed CPA; her husband, Greg, is a major shareholder in a corporation audited by Pam's firm.If Pam is involved in the audit of that firm:

Consider the statements below as you answer the question: • The chief financial officer of TNL Corporation is a certified public accountant.• OBP Corporation's internal audit manager is a certified fraud examiner.• CPQ Corporation maintains a set of systems flowcharts that describe current business processes.• DKM Corporation encrypts all data transmitted over its wireless network.Which corporation is most likely to receive an unmodified report on its financial statements?

A company's business processes were at the managed level of the capability maturity model in 2011 and at the optimized level of the capability maturity model in 2012.Which of the following statements is most true?

The generic steps associated with business process management can be useful in:

A systems flowchart:

Internal controls:

Consider the statements below as you answer the question: • The chief financial officer of TNL Corporation is a certified public accountant.• OBP Corporation's internal audit manager is a certified fraud examiner.• CPQ Corporation maintains a set of systems flowcharts that describe current business processes.• DKM Corporation encrypts all data transmitted over its wireless network.Which corporation will require the least amount of compliance testing?

Consider the independent statements below.Organize them in three groups based on the generally accepted auditing standards discussed in the text; also indicate the name of each group based on the standards.1) Bradley completed a continuing education program on auditing mortgage companies.2) Cameron completed a risk/control matrix as part of an audit.3) Elijah determined that a client's financial statements were fairly presented in accordance with GAAP.4) Elizabeth noted that footnotes to the financial statements needed some improvement.5) Jessica reviewed the background and experience of auditors in her firm as part of developing an audit team.6) Luke refused to accept an audit engagement because his friend was CEO of the company.7) Milton e-mailed an audit client's vendors to help determine the client's accounts payable balances.8) Owen, the manager of an audit team, reviewed the work of inexperienced auditors closely.9) Ryan prepared a disclaimer of report on an audit client's financial statements.10) Sandra explained a change between the applications of GAAP in two successive years.

Which of the following generally accepted auditing standards suggests that an auditor should not have a financial interest in an audit client?

The chapter identified seven types of audits you are likely to encounter in your career.Identify and discuss two similarities and two differences between investigative audits and financial audits.