Question 1

A reply to a lawyer's letters should be issued ________.

Accepted Answer

A) at the audit report date 
B) near the end of the audit 
C) before the engagement 
D) throughout the audit 
A) at the audit report date 
B) near the end of the audit 
C) before the engagement 
D) throughout the audit

Question 2

Arithmetical mistakes,use of inappropriate accounting principles,incorrect application of accounting principles,and disagreements about valuation or other estimates are the causes of ________.

Accepted Answer

A) fraud 
B) misstatements 
C) materiality 
D) adjustments 
A) fraud 
B) misstatements 
C) materiality 
D) adjustments

Question 3

The three criteria for fairness of presentation reporting suggest ________ reasoning for accounting.

Accepted Answer

A) compliance-based 
B) principles-based 
C) engagement-based 
D) fairness-based 
A) compliance-based 
B) principles-based 
C) engagement-based 
D) fairness-based

Question 4

What are the various causes of misstatements? Are they intentional?

Accepted Answer

Misstatements have various causes,such a

Question 5

When a report is double-dated,the auditor has no responsibility for other events that have occurred after the end of fieldwork.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements regarding auditor communication with audit committees is FALSE?

Accepted Answer

A) Both the auditor and management should be present in meetings with the audit committee to discuss these reports,which may be written or oral. 
B) The auditor and management should,in advance,review the information to be covered with the audit committee. 
C) On all matters,management should report to the audit committee first,and the auditor then comments. 
D) When the auditor communicates in writing,the report should indicate that it is intended solely for use by the audit committee. 
A) Both the auditor and management should be present in meetings with the audit committee to discuss these reports,which may be written or oral. 
B) The auditor and management should,in advance,review the information to be covered with the audit committee. 
C) On all matters,management should report to the audit committee first,and the auditor then comments. 
D) When the auditor communicates in writing,the report should indicate that it is intended solely for use by the audit committee.

Question 7

Dual dating refers to instances of dating the audit report as of the date that financial statements are approved by the auditee's responsible parties (e.g. ,the company's board of directors)and attaching an additional later date to disclosure of a significant subsequent event that requires financial statements to be amended.

Accepted Answer

A) True 
 B)False

Question 8

Subsequent to the issuance of the audit report,the auditor became aware of facts existing at the report date that would have affected the report had the auditor then been aware of such facts.After determining that the information is reliable,the auditor should ________.

Accepted Answer

A) determine whether there are persons relying or likely to rely on the financial statements who would attach importance to the information 
B) request that management disclose the newly discovered information by issuing revised financial statements 
C) issue revised pro forma financial statements taking into consideration the newly discovered information 
D) give public notice that the auditor is no longer associated with the financial statements 
A) determine whether there are persons relying or likely to rely on the financial statements who would attach importance to the information 
B) request that management disclose the newly discovered information by issuing revised financial statements 
C) issue revised pro forma financial statements taking into consideration the newly discovered information 
D) give public notice that the auditor is no longer associated with the financial statements

Question 9

To assess fair presentation,the audit engagement partner considers the results of the final overall financial statement analysis,and assesses whether the overall presentation,structure,and content of the financial statements and notes represent the underlying transactions and events fairly,from the perspective of users.The auditor must be satisfied that the information presented in the financial statements is all of the following EXCEPT ________.

Accepted Answer

A) relevant 
B) reliable 
C) confidential 
D) understandable 
A) relevant 
B) reliable 
C) confidential 
D) understandable

Question 10

________ paragraphs refer only to information presented or disclosed in the financial statements.

Accepted Answer

A) Scope 
B) Other Matter 
C) Opinion 
D) Emphasis of Matter 
A) Scope 
B) Other Matter 
C) Opinion 
D) Emphasis of Matter

Question 11

In the current CAS 700 audit report,the description of an auditor's responsibilities and the work performed is covered in ________.

Accepted Answer

A) three paragraphs 
B) half a paragraph 
C) one paragraph 
D) two paragraphs 
A) three paragraphs 
B) half a paragraph 
C) one paragraph 
D) two paragraphs

Question 12

When should an independence letter be received?

Accepted Answer

A) At the audit report date. 
B) Near the end of the audit. 
C) Before the engagement. 
D) Throughout the audit. 
A) At the audit report date. 
B) Near the end of the audit. 
C) Before the engagement. 
D) Throughout the audit.

Question 13

________ paragraphs relate to information that is not required to be disclosed in the financial statements.

Accepted Answer

A) Scope 
B) Other Matter 
C) Opinion 
D) Emphasis of Matter 
A) Scope 
B) Other Matter 
C) Opinion 
D) Emphasis of Matter

Question 14

What is an Other Matter (OM)paragraph?

Accepted Answer

An OM is like a EOM paragraph

Question 15

The auditor actively seeks audit evidence up to the date of the audit report.After that date,the auditor does not seek new evidence.

Accepted Answer

A) True 
 B)False

Question 16

CAS 200 provides a framework for the key principles that guide the conduct of a financial statement audit in accordance with generally accepted auditing standards.It defines all of the following with respect to Canadian Auditing Standards EXCEPT their ________.

Accepted Answer

A) scope 
B) authority 
C) interrelationship 
D) structure 
A) scope 
B) authority 
C) interrelationship 
D) structure

Question 17

Auditors are responsible to search for both types of subsequent events between ________.

Accepted Answer

A) the financial statement year-end date and the audited financial statement issue date 
B) the audit report date and the audited financial statement issue date 
C) the financial statement year-end date and the audit report date 
D) the interim audit date and the audit report date 
A) the financial statement year-end date and the audited financial statement issue date 
B) the audit report date and the audited financial statement issue date 
C) the financial statement year-end date and the audit report date 
D) the interim audit date and the audit report date

Question 18

The auditor must decide if any uncorrected misstatements are material individually but not in aggregate.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following statements regarding fair presentation is FALSE?

Accepted Answer

A) Fair presentation also requires the financial statements to adequately disclose the significant accounting policies applied so that users can understand the effect of transactions and events on the information. 
B) The auditor assesses whether the terminology used and the titles of financial statements are appropriate and understandable. 
C) The final analysis considers the qualitative aspects of the accounting used. 
D) The final analysis does not consider indications of management bias in selecting accounting policies and making accounting estimates. 
A) Fair presentation also requires the financial statements to adequately disclose the significant accounting policies applied so that users can understand the effect of transactions and events on the information. 
B) The auditor assesses whether the terminology used and the titles of financial statements are appropriate and understandable. 
C) The final analysis considers the qualitative aspects of the accounting used. 
D) The final analysis does not consider indications of management bias in selecting accounting policies and making accounting estimates.

Question 20

What is "dual dating" in the audit report?

Accepted Answer

Dual dating refers to instances of datin

A reply to a lawyer's letters should be issued ________.

Arithmetical mistakes,use of inappropriate accounting principles,incorrect application of accounting principles,and disagreements about valuation or other estimates are the causes of ________.

The three criteria for fairness of presentation reporting suggest ________ reasoning for accounting.

What are the various causes of misstatements? Are they intentional?

When a report is double-dated,the auditor has no responsibility for other events that have occurred after the end of fieldwork.

Which of the following statements regarding auditor communication with audit committees is FALSE?

Subsequent to the issuance of the audit report,the auditor became aware of facts existing at the report date that would have affected the report had the auditor then been aware of such facts.After determining that the information is reliable,the auditor should ________.

________ paragraphs refer only to information presented or disclosed in the financial statements.

In the current CAS 700 audit report,the description of an auditor's responsibilities and the work performed is covered in ________.

When should an independence letter be received?

________ paragraphs relate to information that is not required to be disclosed in the financial statements.

What is an Other Matter (OM)paragraph?

The auditor actively seeks audit evidence up to the date of the audit report.After that date,the auditor does not seek new evidence.

CAS 200 provides a framework for the key principles that guide the conduct of a financial statement audit in accordance with generally accepted auditing standards.It defines all of the following with respect to Canadian Auditing Standards EXCEPT their ________.

Auditors are responsible to search for both types of subsequent events between ________.

The auditor must decide if any uncorrected misstatements are material individually but not in aggregate.

Which of the following statements regarding fair presentation is FALSE?

What is "dual dating" in the audit report?

Introduction to Auditing

Auditors Professional Roles and Responsibilities

Auditors Ethical and Legal Responsibilities

Reports on Audited Financial Statements

Preliminary Audit Planning: Understanding the Auditees Business

Assessing Risks in an Audit Engagement

Internal Control Over Financial Reporting

Audit Evidence and Assurance

Control Assessment and Testing

Audit Sampling

The Revenues, Receivables, and Receipts Process and Cash Account Balance

The Purchases, Payables, and Payments Process

Payroll and Production Processes

The Finance and Investment Process

hapter 15 Completing the Audit Work

Other Public Accounting Services and Reportsreviews and Compilations

Professional Rules of Conduct Details and Auditor Responsibilities

The Audit of Accounting Estimates: Basic Material Relating to Accounting Estimates

Legal Liability Cases

Other Professional Accounting Services and Reports, Including Fraud Auditing

Filters

Exam 16: Applying Professional Judgment to Form the Audit Opinion and Issue the Audit Report

A reply to a lawyer's letters should be issued ________.

Arithmetical mistakes,use of inappropriate accounting principles,incorrect application of accounting principles,and disagreements about valuation or other estimates are the causes of ________.

The three criteria for fairness of presentation reporting suggest ________ reasoning for accounting.

What are the various causes of misstatements? Are they intentional?

When a report is double-dated,the auditor has no responsibility for other events that have occurred after the end of fieldwork.

Which of the following statements regarding auditor communication with audit committees is FALSE?

Subsequent to the issuance of the audit report,the auditor became aware of facts existing at the report date that would have affected the report had the auditor then been aware of such facts.After determining that the information is reliable,the auditor should ________.

________ paragraphs refer only to information presented or disclosed in the financial statements.

In the current CAS 700 audit report,the description of an auditor's responsibilities and the work performed is covered in ________.

When should an independence letter be received?

________ paragraphs relate to information that is not required to be disclosed in the financial statements.

What is an Other Matter (OM)paragraph?

The auditor actively seeks audit evidence up to the date of the audit report.After that date,the auditor does not seek new evidence.

CAS 200 provides a framework for the key principles that guide the conduct of a financial statement audit in accordance with generally accepted auditing standards.It defines all of the following with respect to Canadian Auditing Standards EXCEPT their ________.

Auditors are responsible to search for both types of subsequent events between ________.

The auditor must decide if any uncorrected misstatements are material individually but not in aggregate.

Which of the following statements regarding fair presentation is FALSE?

What is "dual dating" in the audit report?

Introduction to Auditing

Auditors Professional Roles and Responsibilities

Auditors Ethical and Legal Responsibilities

Reports on Audited Financial Statements

Preliminary Audit Planning: Understanding the Auditees Business

Assessing Risks in an Audit Engagement

Internal Control Over Financial Reporting

Audit Evidence and Assurance

Control Assessment and Testing

Audit Sampling

The Revenues, Receivables, and Receipts Process and Cash Account Balance

The Purchases, Payables, and Payments Process

Payroll and Production Processes

The Finance and Investment Process

hapter 15 Completing the Audit Work

Other Public Accounting Services and Reportsreviews and Compilations

Professional Rules of Conduct Details and Auditor Responsibilities

The Audit of Accounting Estimates: Basic Material Relating to Accounting Estimates

Legal Liability Cases

Other Professional Accounting Services and Reports, Including Fraud Auditing

Filters