Question 1

The subsequent events period extends to the date of the auditor's report.

Accepted Answer

A) True 
 B)False

Question 2

The attorney's inability to assess the outcome of a material lawsuit is deemed a scope limitation that will adversely affect the opinion rendered by the auditor.

Accepted Answer

A) True 
 B)False

Question 3

The auditor's responsibility for accounting estimates made by management that are incorporated in the financial statements is to evaluate their reasonableness.

Accepted Answer

A) True 
 B)False

Question 4

A concurring partner review (engagement quality review)is required at the end of every audit of public companies.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is not a potential indicator of going concern problems for a client?

Accepted Answer

A) negative trends. 
B) loss of key personnel. 
C) plan to sell nonessential assets. 
D) default on a loan. 
A) negative trends. 
B) loss of key personnel. 
C) plan to sell nonessential assets. 
D) default on a loan.

Question 6

Contingencies
Discuss what a contingency is,the auditor's main concerns about them and how they are supposed to be dealt with by management and the auditor.Besides litigation,claims and assessments,what are some other types of contingencies?

Accepted Answer

Contingencies are potential gain or loss

Question 7

At the end of the audit the auditor is suppose to accumulate and evaluate the need for adjustment of

Accepted Answer

A) known uncorrected errors. 
B) unknown projected errors. 
C) carryover of prior year errors. 
D) all of the above. 
A) known uncorrected errors. 
B) unknown projected errors. 
C) carryover of prior year errors. 
D) all of the above.

Question 8

The final review stage of the audit is used for the consideration of unusual or unexpected balances or relationships that appear after proposed adjustments to the financial statements have been made.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is not a required communication with the audit committee?

Accepted Answer

A) auditor's responsibility under GAAP. 
B) analytical review. 
C) audit adjustments. 
D) uncorrected misstatements. 
A) auditor's responsibility under GAAP. 
B) analytical review. 
C) audit adjustments. 
D) uncorrected misstatements.

Question 10

Analytical review procedures are required by GAAS for which of the following?

Accepted Answer

A) the planning stages of the audit. 
B) the final phase of the audit. 
C) both the planning and final phases of the audit. 
D) performance of tests of controls. 
A) the planning stages of the audit. 
B) the final phase of the audit. 
C) both the planning and final phases of the audit. 
D) performance of tests of controls.

Question 11

Analytical procedures
What is the purpose of using analytical review procedures in the final review stages of the audit?

Accepted Answer

Analytical review procedures are require

Question 12

The auditor may discover an event after the last date of field work,but prior to the issuance of the report.If this event is disclosed,the auditor has no other option but to dual date the report.

Accepted Answer

A) True 
 B)False

Question 13

The primary source of corroborative evidence concerning litigation,claims,and assessments is the client.

Accepted Answer

A) True 
 B)False

Question 14

Type I subsequent events
Present two examples of a Type I subsequent event and explain how they would be treated in the financial statements.

Accepted Answer

The instructor must review the student's

Question 15

The client makes estimates relative to recorded amounts in the financial statements.In determining the reasonableness of these estimates the auditor should consider which of the following?

Accepted Answer

A) Historical trends and information. 
B) Results of reconciliation procedures. 
C) That there is an adequate cushion. 
D) That management hired independent experts to quantify all estimates . 
A) Historical trends and information. 
B) Results of reconciliation procedures. 
C) That there is an adequate cushion. 
D) That management hired independent experts to quantify all estimates .

Question 16

Which of the following is explicitly required by the Sarbanes-Oxley Act of 2002 for audits of public companies?

Accepted Answer

A) Subsequent event review. 
B) Concurring partner review (engagement quality review). 
C) Disclosure of all contingent liabilities. 
D) Seven year client rotation. 
A) Subsequent event review. 
B) Concurring partner review (engagement quality review). 
C) Disclosure of all contingent liabilities. 
D) Seven year client rotation.

Question 17

Because contingencies may have particular reporting implications,auditors assess client contingencies for possible disclosure and adjustment.

Accepted Answer

A) True 
 B)False

Question 18

The auditor may decide to communicate certain issues to the audit committee of the board of directors at the conclusion of an audit to provide client service but is not required to do so.

Accepted Answer

A) True 
 B)False

The subsequent events period extends to the date of the auditor's report.

The attorney's inability to assess the outcome of a material lawsuit is deemed a scope limitation that will adversely affect the opinion rendered by the auditor.

The auditor's responsibility for accounting estimates made by management that are incorporated in the financial statements is to evaluate their reasonableness.

A concurring partner review (engagement quality review)is required at the end of every audit of public companies.

Which of the following is not a potential indicator of going concern problems for a client?

Contingencies Discuss what a contingency is,the auditor's main concerns about them and how they are supposed to be dealt with by management and the auditor.Besides litigation,claims and assessments,what are some other types of contingencies?

At the end of the audit the auditor is suppose to accumulate and evaluate the need for adjustment of

The final review stage of the audit is used for the consideration of unusual or unexpected balances or relationships that appear after proposed adjustments to the financial statements have been made.

Which of the following is not a required communication with the audit committee?

Analytical review procedures are required by GAAS for which of the following?

Analytical procedures What is the purpose of using analytical review procedures in the final review stages of the audit?

The auditor may discover an event after the last date of field work,but prior to the issuance of the report.If this event is disclosed,the auditor has no other option but to dual date the report.

The primary source of corroborative evidence concerning litigation,claims,and assessments is the client.

Type I subsequent events Present two examples of a Type I subsequent event and explain how they would be treated in the financial statements.

The client makes estimates relative to recorded amounts in the financial statements.In determining the reasonableness of these estimates the auditor should consider which of the following?

Which of the following is explicitly required by the Sarbanes-Oxley Act of 2002 for audits of public companies?

Because contingencies may have particular reporting implications,auditors assess client contingencies for possible disclosure and adjustment.

The auditor may decide to communicate certain issues to the audit committee of the board of directors at the conclusion of an audit to provide client service but is not required to do so.

Auditing: Integral to the Economy

Corporate Governance and Audits

Judgmental and Ethical Decision-Making Frameworks and Associated Professional Standards

Audit Risk,business Risk,and Audit Planning

Internal Control Over Financial Reporting

Performing an Integrated Audit

A Framework for Audit Evidence

Tools Used in Gathering Audit Evidence

Auditing for Fraud

Auditing Revenue and Related Accounts

Audit of Acquisition and Payment Cycle and Inventory

Audit of Cash and Other Liquid Assets

Audit of Long-Lived Assets and Related Expense Accounts

Audit of Longer-Term Liabilities, equity, acquisitions, and Related-Entity Transactions, long-Term Liabilities, and Equity

Auditors Reports

Professional Liability

Advanced Topics Concerning Complex Audit Judgments

Filters

Exam 15: Ensuring Audit Quality in Completing the Audit

The subsequent events period extends to the date of the auditor's report.

The attorney's inability to assess the outcome of a material lawsuit is deemed a scope limitation that will adversely affect the opinion rendered by the auditor.

The auditor's responsibility for accounting estimates made by management that are incorporated in the financial statements is to evaluate their reasonableness.

A concurring partner review (engagement quality review)is required at the end of every audit of public companies.

Which of the following is not a potential indicator of going concern problems for a client?

Contingencies Discuss what a contingency is,the auditor's main concerns about them and how they are supposed to be dealt with by management and the auditor.Besides litigation,claims and assessments,what are some other types of contingencies?

At the end of the audit the auditor is suppose to accumulate and evaluate the need for adjustment of

The final review stage of the audit is used for the consideration of unusual or unexpected balances or relationships that appear after proposed adjustments to the financial statements have been made.

Which of the following is not a required communication with the audit committee?

Analytical review procedures are required by GAAS for which of the following?

Analytical procedures What is the purpose of using analytical review procedures in the final review stages of the audit?

The auditor may discover an event after the last date of field work,but prior to the issuance of the report.If this event is disclosed,the auditor has no other option but to dual date the report.

The primary source of corroborative evidence concerning litigation,claims,and assessments is the client.

Type I subsequent events Present two examples of a Type I subsequent event and explain how they would be treated in the financial statements.

The client makes estimates relative to recorded amounts in the financial statements.In determining the reasonableness of these estimates the auditor should consider which of the following?

Which of the following is explicitly required by the Sarbanes-Oxley Act of 2002 for audits of public companies?

Because contingencies may have particular reporting implications,auditors assess client contingencies for possible disclosure and adjustment.

The auditor may decide to communicate certain issues to the audit committee of the board of directors at the conclusion of an audit to provide client service but is not required to do so.

Auditing: Integral to the Economy

Corporate Governance and Audits

Judgmental and Ethical Decision-Making Frameworks and Associated Professional Standards

Audit Risk,business Risk,and Audit Planning

Internal Control Over Financial Reporting

Performing an Integrated Audit

A Framework for Audit Evidence

Tools Used in Gathering Audit Evidence

Auditing for Fraud

Auditing Revenue and Related Accounts

Audit of Acquisition and Payment Cycle and Inventory

Audit of Cash and Other Liquid Assets

Audit of Long-Lived Assets and Related Expense Accounts

Audit of Longer-Term Liabilities, equity, acquisitions, and Related-Entity Transactions, long-Term Liabilities, and Equity

Auditors Reports

Professional Liability

Advanced Topics Concerning Complex Audit Judgments

Filters