Exam 5: Audit Evidence and the Auditors Responsibility for Fraud Detection

The nature of evidence refers to the purpose of the evidence (internal control test or substantive test)and the specific audit procedure used to gather the evidence (inspection,observation,inquiry,confirmation,recalculation,reperformance,or analytical procedure).

(True/False)

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(35)

Question 41

Fraudulent journal entries often have unique characteristics.These include

(Multiple Choice)

4.8/5

(38)

Question 42

The auditor uses the "observation" procedure when he

(Multiple Choice)

4.8/5

(29)

Question 43

Misappropriation of a company's assets can be done in the following ways:

(Multiple Choice)

4.8/5

(42)

Question 44

When misappropriation of assets occurs,

(Multiple Choice)

4.8/5

(31)

Question 45

The auditor's assessment of fraud is part of his assessment of the risk of material misstatement.If the risk of fraud is high,

(Multiple Choice)

4.8/5

(38)

Question 46

Significant findings are to be documented by the auditor,including actions taken to address them and the basis for the final conclusion reached.Findings that might be significant include

(Multiple Choice)

4.8/5

(37)

Question 47

The auditing standards describe audit evidence as the "information used by the auditor in arriving at the conclusions on which the auditor's opinion is based."

(True/False)

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Question 48

The condition,rationalization to commit fraud,is present when

(Multiple Choice)

4.8/5

(39)

Question 49

The fraud discussion may include the following elements

(Multiple Choice)

4.8/5

(48)

Question 50

The auditor is required to document his response to the assessed risk of material misstatement.This documentation should include

(Multiple Choice)

4.9/5

(40)

Question 51

The auditor is required to document in the work papers his understanding of the company and its environment and his assessment of the risks of material misstatement.This documentation should include

(Multiple Choice)

4.9/5

(32)

Question 52

Evidence is important to the audit because the only way the auditor can obtain reasonable assurance that the financial statements are prepared in accordance with the applicable financial reporting framework is

(Multiple Choice)

4.9/5

(47)

Question 53

The auditor uses the "external confirmation" procedure when he

(Multiple Choice)

4.8/5

(37)

Question 54

The auditor may consider withdrawing from the engagement if there is a significant risk of material misstatement in the financial statements.

(True/False)

5.0/5

(38)

Question 55

The auditor is responsible for gathering evidence to determine that there are no material errors in the financial statements.

(True/False)

4.8/5

(39)

Question 56

The term "earnings management" is often used to refer to management's efforts to

(Multiple Choice)

4.8/5

(36)

Question 57

Which of the following are audit procedures used by the auditor to gather evidence?

(Multiple Choice)

4.7/5

(41)

Question 58

Misappropriation of a company's assets can be done in the following ways:

(Multiple Choice)

4.8/5

(42)

Question 59

The auditor uses the "inquiry" process when he

(Multiple Choice)

4.8/5

(45)

Question 60

Showing 41 - 60 of 114

The nature of evidence refers to the purpose of the evidence (internal control test or substantive test)and the specific audit procedure used to gather the evidence (inspection,observation,inquiry,confirmation,recalculation,reperformance,or analytical procedure).

Fraudulent journal entries often have unique characteristics.These include

The auditor uses the "observation" procedure when he

Misappropriation of a company's assets can be done in the following ways:

When misappropriation of assets occurs,

The auditor's assessment of fraud is part of his assessment of the risk of material misstatement.If the risk of fraud is high,

Significant findings are to be documented by the auditor,including actions taken to address them and the basis for the final conclusion reached.Findings that might be significant include

The auditing standards describe audit evidence as the "information used by the auditor in arriving at the conclusions on which the auditor's opinion is based."

The condition,rationalization to commit fraud,is present when

The fraud discussion may include the following elements

The auditor is required to document his response to the assessed risk of material misstatement.This documentation should include

The auditor is required to document in the work papers his understanding of the company and its environment and his assessment of the risks of material misstatement.This documentation should include

Evidence is important to the audit because the only way the auditor can obtain reasonable assurance that the financial statements are prepared in accordance with the applicable financial reporting framework is

The auditor uses the "external confirmation" procedure when he

The auditor may consider withdrawing from the engagement if there is a significant risk of material misstatement in the financial statements.

The auditor is responsible for gathering evidence to determine that there are no material errors in the financial statements.

The term "earnings management" is often used to refer to management's efforts to

Which of the following are audit procedures used by the auditor to gather evidence?

Misappropriation of a company's assets can be done in the following ways:

The auditor uses the "inquiry" process when he

What Is Auditing

The Audit Planning Process: Understanding the Risk of Material Misstatement

Internal Controls

Auditing the Revenue Business Process

Auditing the Acquisition and Expenditure Business Process

Auditing the Inventory Business Process

Audit Sampling: Tests of Internal Controls

Audit Sampling: Substantive Tests of Details

Cash and Investment Business Processes

Long-Term Debt and Owners Equity Business Process

Completing the Audit

Audit Reports

The Auditing Profession Glossary

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