Question 1

A potential fraud risk associated with debt is the intentional misclassification of short-term debt as long-term debt.

Accepted Answer

A) True 
 B)False

Question 2

Normally,an auditor can gain an understanding of internal controls by means of a walkthrough of the process,inquiry,observation,and review of the client's documentation.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is not a key type of evidence that the auditor needs to examine with respect to pensions and postemployment benefits?

Accepted Answer

A) Whether the actuarial firm hired by management is independent,capable,and objective. 
B) The appropriateness of the actuarial firm's work. 
C) The reasonableness of significant interest rate assumptions. 
D) The length of illnesses that pension recipients contract. 
A) Whether the actuarial firm hired by management is independent,capable,and objective. 
B) The appropriateness of the actuarial firm's work. 
C) The reasonableness of significant interest rate assumptions. 
D) The length of illnesses that pension recipients contract.

Question 4

Which of the following factors would be least likely to affect the estimate of the warranty liability?

Accepted Answer

A) Changes in the product. 
B) Changes in the nature of the warranty. 
C) Changes in the sales staff. 
D) Changes in sales volume. 
A) Changes in the product. 
B) Changes in the nature of the warranty. 
C) Changes in the sales staff. 
D) Changes in sales volume.

Question 5

As a starting point for testing capital stock and equity transactions,which of the following should the auditor perform?

Accepted Answer

A) Trace the proceeds of stock sold to the cash receipts journal. 
B) Review the minutes of the board of directors' meetings. 
C) Examine documentation maintained by the transfer agent. 
D) Review a copy of the client's articles of incorporation. 
A) Trace the proceeds of stock sold to the cash receipts journal. 
B) Review the minutes of the board of directors' meetings. 
C) Examine documentation maintained by the transfer agent. 
D) Review a copy of the client's articles of incorporation.

A potential fraud risk associated with debt is the intentional misclassification of short-term debt as long-term debt.

Normally,an auditor can gain an understanding of internal controls by means of a walkthrough of the process,inquiry,observation,and review of the client's documentation.

Which of the following is not a key type of evidence that the auditor needs to examine with respect to pensions and postemployment benefits?

Which of the following factors would be least likely to affect the estimate of the warranty liability?

As a starting point for testing capital stock and equity transactions,which of the following should the auditor perform?

Quality Auditing: Why It Matters

The Auditors Responsibilities Regarding Fraud and Mechanisms to Address Fraud: Regulation and Corporate Governance

Internal Control Over Financial Reporting: Responsibilities of Management and the External Auditor

Professional Legal Liability

Professional Auditing Standards and the Audit Opinion Formulation Process

Audit Evidence

Planning the Audit: Identifying and Responding to the Risks of Material Misstatement

Specialized Audit Tools: Sampling and Generalized Audit Software

Auditing the Revenue Cycle

Auditing Cash and Marketable Securities

Auditing Inventory, Goods and Services, and Accounts Payable: the Acquisition and Payment Cycle

Auditing Long-Lived Assets: Acquisition, Use, Impairment, and Disposal

Completing a Quality Audit

Audit Reports

Filters

Exam 13: Auditing Long-Term Liabilities and Stockholders Equity Transactions

A potential fraud risk associated with debt is the intentional misclassification of short-term debt as long-term debt.

Normally,an auditor can gain an understanding of internal controls by means of a walkthrough of the process,inquiry,observation,and review of the client's documentation.

Which of the following is not a key type of evidence that the auditor needs to examine with respect to pensions and postemployment benefits?

Which of the following factors would be least likely to affect the estimate of the warranty liability?

As a starting point for testing capital stock and equity transactions,which of the following should the auditor perform?

Quality Auditing: Why It Matters

The Auditors Responsibilities Regarding Fraud and Mechanisms to Address Fraud: Regulation and Corporate Governance

Internal Control Over Financial Reporting: Responsibilities of Management and the External Auditor

Professional Legal Liability

Professional Auditing Standards and the Audit Opinion Formulation Process

Audit Evidence

Planning the Audit: Identifying and Responding to the Risks of Material Misstatement

Specialized Audit Tools: Sampling and Generalized Audit Software

Auditing the Revenue Cycle

Auditing Cash and Marketable Securities

Auditing Inventory, Goods and Services, and Accounts Payable: the Acquisition and Payment Cycle

Auditing Long-Lived Assets: Acquisition, Use, Impairment, and Disposal

Completing a Quality Audit

Audit Reports

Filters