Question 1

Which of the following items in not typically documented in an audit planning memo?

Accepted Answer

A)  audit engagement objectives and deliverables 
B)  the auditors' understanding of ICFR and IT systems 
C)  planned use of the work of others during the audit 
D)  results of the quarterly review process 
A)  audit engagement objectives and deliverables 
B)  the auditors' understanding of ICFR and IT systems 
C)  planned use of the work of others during the audit 
D)  results of the quarterly review process

Question 2

Auditors test the operating effectiveness of those controls that are intended to prevent and detect material misstatements.

Accepted Answer

A) True 
 B)False

Question 3

An IT specialist may be involved in an audit engagement to assist with any of the following except

Accepted Answer

A)  inspecting systems documentation. 
B)  inquiring of company personnel about how the processes are carried out and how IT controls are designed. 
C)  preparing the IT planning memo. 
D)  planning the tests of IT controls. 
A)  inspecting systems documentation. 
B)  inquiring of company personnel about how the processes are carried out and how IT controls are designed. 
C)  preparing the IT planning memo. 
D)  planning the tests of IT controls.

Question 4

The scope of the engagement depends upon all of the following considerations except the

Accepted Answer

A)  presentation of the client's accounting information. 
B)  use and importance of IT to the client's activities and ICFR. 
C)  ability to use audit evidence performed by the client's internal auditors. 
D)  timing of the client's fiscal year-end. 
A)  presentation of the client's accounting information. 
B)  use and importance of IT to the client's activities and ICFR. 
C)  ability to use audit evidence performed by the client's internal auditors. 
D)  timing of the client's fiscal year-end.

Question 5

Scaling the audit refers to fitting the audit work into the proper context in terms of the engagement's size, environment, and complexity.

Accepted Answer

A) True 
 B)False

Question 6

The scope of an audit team's work will be more extensive

Accepted Answer

A)  for a first year audit engagement as opposed to a continuing audit. 
B)  when internal auditors perform work to be used as evidence by the external auditors. 
C)  when a user company's auditor relies upon a report provided by an auditor of the service provider. 
D)  for a company with effective entity-level controls. 
A)  for a first year audit engagement as opposed to a continuing audit. 
B)  when internal auditors perform work to be used as evidence by the external auditors. 
C)  when a user company's auditor relies upon a report provided by an auditor of the service provider. 
D)  for a company with effective entity-level controls.

Question 7

ICFR tests to provide evidence on whether the controls can be relied upon for the financial statement audit can be performed

Accepted Answer

A)  only during year-end because they must be performed at the same time as financial statement audit procedures. 
B)  only during interim because they must be performed at the same time as financial statement audit procedures. 
C)  at any time the evidence is available, as long as the entire period of reliance is evaluated. 
D)  at any time after the substantive procedures have been completed, so that the opinion on financial statement misstatements is not superceded by the opinion on the effectiveness of controls. 
A)  only during year-end because they must be performed at the same time as financial statement audit procedures. 
B)  only during interim because they must be performed at the same time as financial statement audit procedures. 
C)  at any time the evidence is available, as long as the entire period of reliance is evaluated. 
D)  at any time after the substantive procedures have been completed, so that the opinion on financial statement misstatements is not superceded by the opinion on the effectiveness of controls.

Question 8

Tracing refers to looking at the supporting documentation for a recorded number.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is not an indicator of competence that is relevant to an auditor's evaluation of other individuals performing a portion of the audit work?

Accepted Answer

A)  professional certification 
B)  professional experience 
C)  level of education 
D)  access to the board of directors 
A)  professional certification 
B)  professional experience 
C)  level of education 
D)  access to the board of directors

Question 10

Which of the following is not a valid reason for the performance of audit procedures at an interim date?

Accepted Answer

A)  More time is available for management to correct identified by interim audit testing. 
B)  The client company does not retain the records that are needed as audit evidence through the year-end time frame. 
C)  Most controls and transactions cannot be audited during busy season. 
D)  More time is available for the auditors to concentrate on problem areas, if needed. 
A)  More time is available for management to correct identified by interim audit testing. 
B)  The client company does not retain the records that are needed as audit evidence through the year-end time frame. 
C)  Most controls and transactions cannot be audited during busy season. 
D)  More time is available for the auditors to concentrate on problem areas, if needed.

Which of the following items in not typically documented in an audit planning memo?

Auditors test the operating effectiveness of those controls that are intended to prevent and detect material misstatements.

An IT specialist may be involved in an audit engagement to assist with any of the following except

The scope of the engagement depends upon all of the following considerations except the

Scaling the audit refers to fitting the audit work into the proper context in terms of the engagement's size, environment, and complexity.

The scope of an audit team's work will be more extensive

ICFR tests to provide evidence on whether the controls can be relied upon for the financial statement audit can be performed

Tracing refers to looking at the supporting documentation for a recorded number.

Which of the following is not an indicator of competence that is relevant to an auditor's evaluation of other individuals performing a portion of the audit work?

Which of the following is not a valid reason for the performance of audit procedures at an interim date?

An Introduction to Auditing

Overview of an Integrated Audit

The Auditors Role in Society

Legal Environment Affecting Audits Pt Iii Executing an Integrated Audit

Client Acceptance and Continuance and Preliminary Engagement Procedures

Internal Control, Understanding the Clients Internal Control Over Financial Reporting and Auditing Design Effectiveness

Planning and Testing Operating Effectiveness of Internal Control Over Financial Reporting

Substantive Procedures and the Financial Statement Audit

Auditing Revenue Process: Sales, Billing and Collection in the Health-Care Provider and Retailing Industries

Completing the Integrated Audit and Reporting

The Acquisition and Payments Cycle and Related Accounts: Purchases, Cash Disbursements and Other Related Activities in the Automotive Industry

Auditing Human Resources Cycle Process: Personnel and Payroll in Service Industries

Auditing Inventory Processes: Tracking and Costing Products in the Land Development and Home Building Industry

Assets, Liabilities and Equity Related to the Financing Cycle

Topics Beyond the Integrated Audit

Filters

Exam 6: Audit Planning and Risk Assessment

Which of the following items in not typically documented in an audit planning memo?

Auditors test the operating effectiveness of those controls that are intended to prevent and detect material misstatements.

An IT specialist may be involved in an audit engagement to assist with any of the following except

The scope of the engagement depends upon all of the following considerations except the

Scaling the audit refers to fitting the audit work into the proper context in terms of the engagement's size, environment, and complexity.

The scope of an audit team's work will be more extensive

ICFR tests to provide evidence on whether the controls can be relied upon for the financial statement audit can be performed

Tracing refers to looking at the supporting documentation for a recorded number.

Which of the following is not an indicator of competence that is relevant to an auditor's evaluation of other individuals performing a portion of the audit work?

Which of the following is not a valid reason for the performance of audit procedures at an interim date?

An Introduction to Auditing

Overview of an Integrated Audit

The Auditors Role in Society

Legal Environment Affecting Audits Pt Iii Executing an Integrated Audit

Client Acceptance and Continuance and Preliminary Engagement Procedures

Internal Control, Understanding the Clients Internal Control Over Financial Reporting and Auditing Design Effectiveness

Planning and Testing Operating Effectiveness of Internal Control Over Financial Reporting

Substantive Procedures and the Financial Statement Audit

Auditing Revenue Process: Sales, Billing and Collection in the Health-Care Provider and Retailing Industries

Completing the Integrated Audit and Reporting

The Acquisition and Payments Cycle and Related Accounts: Purchases, Cash Disbursements and Other Related Activities in the Automotive Industry

Auditing Human Resources Cycle Process: Personnel and Payroll in Service Industries

Auditing Inventory Processes: Tracking and Costing Products in the Land Development and Home Building Industry

Assets, Liabilities and Equity Related to the Financing Cycle

Topics Beyond the Integrated Audit

Filters