Question 1

The expectation gap is caused by unrealistic user expectations such as the auditor providing a moderate level of assurance.

Accepted Answer

A) True 
 B)False

Question 2

Maggie Oh performed an audit of a client that had undergone flooding to its operations in St-Jean Sur Richelieu. The client was insured and was able to keep operating. However,
There was material damage to the client's warehouse and Maggie felt it would be appropriate
To inform the users of the financial statements of this fact in the audit report. This form of audit
Report is called

Accepted Answer

A)  an adverse opinion. 
B)  unmodified opinion - emphasis of matter. 
C)  modified opinion. 
D)  disclaimer of opinion. 
A)  an adverse opinion. 
B)  unmodified opinion - emphasis of matter. 
C)  modified opinion. 
D)  disclaimer of opinion.

Question 3

Professional scepticism does not involve

Accepted Answer

A)  the professional requirement that all management representations be substantiated with supporting documentation. 
B)  seeking independent evidence to corroborate information provided by their client 
C)  being suspicious when evidence contradicts documents held by their client or enquiries made of client personnel 
D)  none of the above 
A)  the professional requirement that all management representations be substantiated with supporting documentation. 
B)  seeking independent evidence to corroborate information provided by their client 
C)  being suspicious when evidence contradicts documents held by their client or enquiries made of client personnel 
D)  none of the above

Question 4

Agency theory can be described as the theory of

Accepted Answer

A)  hiring an agency to review the work of the management, in this case it is the auditor. 
B)  when the finance function is outsourced to an outside party, and the auditor is required to audit the outside party's work. 
C)  the relationship between the owner and the management of the business when the owner is not the manager of the business. 
D)  none of the above 
A)  hiring an agency to review the work of the management, in this case it is the auditor. 
B)  when the finance function is outsourced to an outside party, and the auditor is required to audit the outside party's work. 
C)  the relationship between the owner and the management of the business when the owner is not the manager of the business. 
D)  none of the above

Question 5

A negative expression of opinion is only given when there is a disagreement with management and the auditor.

Accepted Answer

A) True 
 B)False

The expectation gap is caused by unrealistic user expectations such as the auditor providing a moderate level of assurance.

Professional scepticism does not involve

Agency theory can be described as the theory of

A negative expression of opinion is only given when there is a disagreement with management and the auditor.

Ethics, Legal Liability and Client Acceptance

Audit Planning I

Audit Planning II

Audit Evidence

Sampling and Overview of the Risk Response Phase of the Audit

Understanding and Testing the Clients System of Internal Controls

Execution of the Audit Performing Substantive Procedures

Auditing Sales and Receivables

Auditing Purchases, Payables and Payroll

Auditing Inventories and PPE

Auditing Cash and Investments

Completing and Reporting on the Audit

Filters

Exam 1: Introduction and Review of Audit and Assurance

The expectation gap is caused by unrealistic user expectations such as the auditor providing a moderate level of assurance.

Professional scepticism does not involve

Agency theory can be described as the theory of

A negative expression of opinion is only given when there is a disagreement with management and the auditor.

Ethics, Legal Liability and Client Acceptance

Audit Planning I

Audit Planning II

Audit Evidence

Sampling and Overview of the Risk Response Phase of the Audit

Understanding and Testing the Clients System of Internal Controls

Execution of the Audit Performing Substantive Procedures

Auditing Sales and Receivables

Auditing Purchases, Payables and Payroll

Auditing Inventories and PPE

Auditing Cash and Investments

Completing and Reporting on the Audit

Filters