Question 1

A client keeps his records in a shoebox with little evidence supporting the entries. This is sufficient to support conclusions in generating an audit report.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following assertions would not apply to short-term debt:

Accepted Answer

A)  existence. 
B)  completeness. 
C)  right and obligations. 
D)  All of the above. 
A)  existence. 
B)  completeness. 
C)  right and obligations. 
D)  All of the above.

Question 3

Publically-traded company refers to any SEC registrant.

Accepted Answer

A) True 
 B)False

Question 4

In order to obtain evidence regarding valuation of accounts receivable, the auditor is likely to:

Accepted Answer

A)  send out confirmations to the client's debtors requesting amount owed verification. 
B)  inquire of management as to the accuracy of sales transactions. 
C)  examine completed confirmation requests for discrepancies between debtor and client amount. 
D)  All of the above. 
A)  send out confirmations to the client's debtors requesting amount owed verification. 
B)  inquire of management as to the accuracy of sales transactions. 
C)  examine completed confirmation requests for discrepancies between debtor and client amount. 
D)  All of the above.

Question 5

Which of the following assertions address presentation and disclosure:

Accepted Answer

A)  existence. 
B)  accuracy and valuation. 
C)  rights and obligations. 
D)  Both b and c 
A)  existence. 
B)  accuracy and valuation. 
C)  rights and obligations. 
D)  Both b and c

Question 6

Describe in detail the audit steps required in performing an audit from beginning to end. Identify how you would address each of the auditing standards in your work.

Accepted Answer

Plan the audit
Perform analytical review

Question 7

The reason auditors collect evidence is to:

Accepted Answer

A)  determine if management's assertions are fair. 
B)  obtain a reasonable basis for forming an opinion on the financial statements. 
C)  obtain a reasonable basis for forming an opinion on the effectiveness of ICFR. 
D)  All of the above. 
A)  determine if management's assertions are fair. 
B)  obtain a reasonable basis for forming an opinion on the financial statements. 
C)  obtain a reasonable basis for forming an opinion on the effectiveness of ICFR. 
D)  All of the above.

Question 8

Is it possible that an auditor can make a professional judgment error and still be behaving with due professional care? Explain.

Accepted Answer

Yes. Behaving with due professional care

Question 9

An auditor encounters an error and decides not to suggest an adjustment. This is an example of:

Accepted Answer

A)  professional skepticism. 
B)  professional judgment. 
C)  materiality decision. 
D)  Both b and c 
A)  professional skepticism. 
B)  professional judgment. 
C)  materiality decision. 
D)  Both b and c

Question 10

The amount of evidence collected during an audit has a direct relationship to:

Accepted Answer

A)  expected risk. 
B)  accuracy of management assertions. 
C)  appropriateness of management assertions. 
D)  All of the above. 
A)  expected risk. 
B)  accuracy of management assertions. 
C)  appropriateness of management assertions. 
D)  All of the above.

Question 11

Analytical procedures pinpoint the exact location of fraud.

Accepted Answer

A) True 
 B)False

Question 12

The auditor begins with tests of internal control.

Accepted Answer

A) True 
 B)False

Question 13

An example of qualitative materiality is:

Accepted Answer

A)  an error involving an amount of great magnitude. 
B)  an error involving management oversight of small amounts. 
C)  a misstatement caused by management fraud. 
D)  All of the above. 
A)  an error involving an amount of great magnitude. 
B)  an error involving management oversight of small amounts. 
C)  a misstatement caused by management fraud. 
D)  All of the above.

Question 14

Who issues standards for audits of non-public companies?

Accepted Answer

A)  The AICPA. 
B)  The SEC. 
C)  The PCAOB. 
D)  All of the above. 
A)  The AICPA. 
B)  The SEC. 
C)  The PCAOB. 
D)  All of the above.

Question 15

The field work standards address:

Accepted Answer

A)  due professional care. 
B)  independence. 
C)  attention to GAAP. 
D)  obtaining sufficient evidential matter. 
A)  due professional care. 
B)  independence. 
C)  attention to GAAP. 
D)  obtaining sufficient evidential matter.

Question 16

The AICPA generates all field standards.

Accepted Answer

A) True 
 B)False

Question 17

The reporting standards addresses:

Accepted Answer

A)  an expression of an opinion. 
B)  independence. 
C)  supervision. 
D)  understanding of internal control. 
A)  an expression of an opinion. 
B)  independence. 
C)  supervision. 
D)  understanding of internal control.

A client keeps his records in a shoebox with little evidence supporting the entries. This is sufficient to support conclusions in generating an audit report.

Which of the following assertions would not apply to short-term debt:

Publically-traded company refers to any SEC registrant.

In order to obtain evidence regarding valuation of accounts receivable, the auditor is likely to:

Which of the following assertions address presentation and disclosure:

Describe in detail the audit steps required in performing an audit from beginning to end. Identify how you would address each of the auditing standards in your work.

The reason auditors collect evidence is to:

Is it possible that an auditor can make a professional judgment error and still be behaving with due professional care? Explain.

An auditor encounters an error and decides not to suggest an adjustment. This is an example of:

The amount of evidence collected during an audit has a direct relationship to:

Analytical procedures pinpoint the exact location of fraud.

The auditor begins with tests of internal control.

An example of qualitative materiality is:

Who issues standards for audits of non-public companies?

The field work standards address:

The AICPA generates all field standards.

The reporting standards addresses:

An Introduction to Auditing

The Auditors Role in Society

Legal Environment Affecting Audits Pt Iii Executing an Integrated Audit

Client Acceptance and Continuance and Preliminary Engagement Procedures

Audit Planning and Risk Assessment

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 2: Overview of an Integrated Audit

A client keeps his records in a shoebox with little evidence supporting the entries. This is sufficient to support conclusions in generating an audit report.

Which of the following assertions would not apply to short-term debt:

Publically-traded company refers to any SEC registrant.

In order to obtain evidence regarding valuation of accounts receivable, the auditor is likely to:

Which of the following assertions address presentation and disclosure:

Describe in detail the audit steps required in performing an audit from beginning to end. Identify how you would address each of the auditing standards in your work.

The reason auditors collect evidence is to:

Is it possible that an auditor can make a professional judgment error and still be behaving with due professional care? Explain.

An auditor encounters an error and decides not to suggest an adjustment. This is an example of:

The amount of evidence collected during an audit has a direct relationship to:

Analytical procedures pinpoint the exact location of fraud.

The auditor begins with tests of internal control.

An example of qualitative materiality is:

Who issues standards for audits of non-public companies?

The field work standards address:

The AICPA generates all field standards.

The reporting standards addresses:

An Introduction to Auditing

The Auditors Role in Society

Legal Environment Affecting Audits Pt Iii Executing an Integrated Audit

Client Acceptance and Continuance and Preliminary Engagement Procedures

Audit Planning and Risk Assessment

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