Question 1

Which of the following would not be included in an audit report?

Accepted Answer

A)  The auditor's address 
B)  An introductory paragraph 
C)  The audit fee charged to the client 
D)  Management's responsibility for the financial statements 
A)  The auditor's address 
B)  An introductory paragraph 
C)  The audit fee charged to the client 
D)  Management's responsibility for the financial statements

Question 2

If the auditor is not able to obtain sufficient appropriate audit evidence, the appropriate audit opinion will either be:

Accepted Answer

A)  a qualified opinion or an unqualified opinion. 
B)  a disclaimer of opinion or an emphasis of matter. 
C)  a qualified opinion or disclaimer of opinion. 
D)  an emphasis of matter or a qualified opinion. 
A)  a qualified opinion or an unqualified opinion. 
B)  a disclaimer of opinion or an emphasis of matter. 
C)  a qualified opinion or disclaimer of opinion. 
D)  an emphasis of matter or a qualified opinion.

Question 3

An error is an intentional misstatement in the client's financial statements.

Accepted Answer

A) True 
 B)False

Question 4

When Sydney Burns was unable to perform work on inventory because of a client's insistence that she not perform an inventory taking, what kind of audit opinion would she most likely consider?

Accepted Answer

A)  adverse opinion 
B)  emphasis of matter 
C)  limitation of scope 
D)  disclaimer of opinion 
A)  adverse opinion 
B)  emphasis of matter 
C)  limitation of scope 
D)  disclaimer of opinion

Question 5

What are examplof matters of governance interest that the auditor may wish to discuss with those charged with governance.

Accepted Answer

Matters of governance interest that the

Question 6

When an error or exception is identified during substantive testing, the first response is to:

Accepted Answer

A)  qualify the audit report. 
B)  understand why the error or exception has arisen. 
C)  increase the sample size. 
D)  report the error or exception to the audit committee. 
A)  qualify the audit report. 
B)  understand why the error or exception has arisen. 
C)  increase the sample size. 
D)  report the error or exception to the audit committee.

Question 7

Subsequent events procedurare normally performed through to and including the date of the auditor's report.

Accepted Answer

A) True 
 B)False

Question 8

A public auditor in practice can only perform audits and review and is prohibited from completing non-assurance engagements such as compilations of financial information and tax engagements.

Accepted Answer

A) True 
 B)False

Question 9

The final phase of an audit is to assess all of the audit evidence obtained and determine whether it is sufficient and appropriate.

Accepted Answer

A) True 
 B)False

Question 10

An unqualified audit opinion with an emphasis of matter should be given where there is:

Accepted Answer

A)  inconsistent other information. 
B)  additional disclosures with which the auditor concurs. 
C)  a subsequent event that results in a new auditor's report on revised financial statements. 
D)  all of the above. 
A)  inconsistent other information. 
B)  additional disclosures with which the auditor concurs. 
C)  a subsequent event that results in a new auditor's report on revised financial statements. 
D)  all of the above.

Question 11

Explain the difference between type 1 and type 2 subsequent events and provide examplof each type of event.

Accepted Answer

Type 1 subsequent events are events that

Question 12

The client's compliance with contractual requirements of operating agreements is an example of a qualitative factor that may cause misstatements of quantitatively immaterial amounts to be considered material.

Accepted Answer

A) True 
 B)False

Question 13

A type 1 subsequent event providevidence with respect to conditions that developed subsequent to year-end.

Accepted Answer

A) True 
 B)False

Question 14

The auditor's responsibility for the financial statements includselecting and applying appropriate accounting policies.

Accepted Answer

A) True 
 B)False

Question 15

When Eddie Okulicz released the audit report of C Corp. he did not anticipate that there would follow an announcement two days later that several days after year-end his client's foreign subsidiary had been nationalized by Libya for non-compliance to environmental laws of the country. What type of subsequent event was this?

Accepted Answer

A)  Type 1 
B)  Type 2 
C)  Type 1 and 2 
D)  this was not a subsequent event 
A)  Type 1 
B)  Type 2 
C)  Type 1 and 2 
D)  this was not a subsequent event

Question 16

Manuel DeSouknew that the nature of his concern about a client matter would not require a qualification. What kind of audit report was he considering?

Accepted Answer

A)  qualified opinion 
B)  emphasis of matter 
C)  compilation 
D)  none of the above 
A)  qualified opinion 
B)  emphasis of matter 
C)  compilation 
D)  none of the above

Question 17

A limitation on the scope of the auditor's work may result from:

Accepted Answer

A)  damage to accounting records. 
B)  lack of access to key personnel. 
C)  absence of adequate accounting records. 
D)  all of the above. 
A)  damage to accounting records. 
B)  lack of access to key personnel. 
C)  absence of adequate accounting records. 
D)  all of the above.

Question 18

As soon as practicable, the auditor should communicate weaknessin internal controls to management or those charged with governance.

Accepted Answer

A) True 
 B)False

Question 19

Syed Hussein, the partner on the Rimouski Copper audit called a meeting of his senior staff during the engagement wrap-up. Which of the following areas would be the least likely to be covered during the wrap up?

Accepted Answer

A)  consideration of the amount used for materiality 
B)  removal of all unnecessary documentation from the engagement files 
C)  performing analytical procedures on the adjusted financial statements 
D)  preparation of budgets for the following year's audit 
A)  consideration of the amount used for materiality 
B)  removal of all unnecessary documentation from the engagement files 
C)  performing analytical procedures on the adjusted financial statements 
D)  preparation of budgets for the following year's audit

Question 20

The final phase of an audit includwhich of the following?

Accepted Answer

A)  performing substantive tests of account balances 
B)  gaining an understanding of the client's internal control system 
C)  confirming the terms of the audit engagement with the auditor 
D)  determining whether the audit evidence obtained is sufficient and appropriate to reduce the risk of material misstatements in the financial statements to an acceptably low level 
A)  performing substantive tests of account balances 
B)  gaining an understanding of the client's internal control system 
C)  confirming the terms of the audit engagement with the auditor 
D)  determining whether the audit evidence obtained is sufficient and appropriate to reduce the risk of material misstatements in the financial statements to an acceptably low level

Which of the following would not be included in an audit report?

If the auditor is not able to obtain sufficient appropriate audit evidence, the appropriate audit opinion will either be:

An error is an intentional misstatement in the client's financial statements.

When Sydney Burns was unable to perform work on inventory because of a client's insistence that she not perform an inventory taking, what kind of audit opinion would she most likely consider?

What are examplof matters of governance interest that the auditor may wish to discuss with those charged with governance.

When an error or exception is identified during substantive testing, the first response is to:

Subsequent events procedurare normally performed through to and including the date of the auditor's report.

A public auditor in practice can only perform audits and review and is prohibited from completing non-assurance engagements such as compilations of financial information and tax engagements.

The final phase of an audit is to assess all of the audit evidence obtained and determine whether it is sufficient and appropriate.

An unqualified audit opinion with an emphasis of matter should be given where there is:

Explain the difference between type 1 and type 2 subsequent events and provide examplof each type of event.

The client's compliance with contractual requirements of operating agreements is an example of a qualitative factor that may cause misstatements of quantitatively immaterial amounts to be considered material.

A type 1 subsequent event providevidence with respect to conditions that developed subsequent to year-end.

The auditor's responsibility for the financial statements includselecting and applying appropriate accounting policies.

Manuel DeSouknew that the nature of his concern about a client matter would not require a qualification. What kind of audit report was he considering?

A limitation on the scope of the auditor's work may result from:

As soon as practicable, the auditor should communicate weaknessin internal controls to management or those charged with governance.

Syed Hussein, the partner on the Rimouski Copper audit called a meeting of his senior staff during the engagement wrap-up. Which of the following areas would be the least likely to be covered during the wrap up?

The final phase of an audit includwhich of the following?

Introduction and Review of Audit and Assurance

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 Procedur

Auditing Saland Receivabl

Auditing Purchases, Payabland Payroll

Auditing Inventoriand PPE

Auditing Cash and Investments

Filters

Exam 13: Completing and Reporting on the Audit

Which of the following would not be included in an audit report?

If the auditor is not able to obtain sufficient appropriate audit evidence, the appropriate audit opinion will either be:

An error is an intentional misstatement in the client's financial statements.

When Sydney Burns was unable to perform work on inventory because of a client's insistence that she not perform an inventory taking, what kind of audit opinion would she most likely consider?

What are examplof matters of governance interest that the auditor may wish to discuss with those charged with governance.

When an error or exception is identified during substantive testing, the first response is to:

Subsequent events procedurare normally performed through to and including the date of the auditor's report.

A public auditor in practice can only perform audits and review and is prohibited from completing non-assurance engagements such as compilations of financial information and tax engagements.

The final phase of an audit is to assess all of the audit evidence obtained and determine whether it is sufficient and appropriate.

An unqualified audit opinion with an emphasis of matter should be given where there is:

Explain the difference between type 1 and type 2 subsequent events and provide examplof each type of event.

The client's compliance with contractual requirements of operating agreements is an example of a qualitative factor that may cause misstatements of quantitatively immaterial amounts to be considered material.

A type 1 subsequent event providevidence with respect to conditions that developed subsequent to year-end.

The auditor's responsibility for the financial statements includselecting and applying appropriate accounting policies.

Manuel DeSouknew that the nature of his concern about a client matter would not require a qualification. What kind of audit report was he considering?

A limitation on the scope of the auditor's work may result from:

As soon as practicable, the auditor should communicate weaknessin internal controls to management or those charged with governance.

Syed Hussein, the partner on the Rimouski Copper audit called a meeting of his senior staff during the engagement wrap-up. Which of the following areas would be the least likely to be covered during the wrap up?

The final phase of an audit includwhich of the following?

Introduction and Review of Audit and Assurance

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 Procedur

Auditing Saland Receivabl

Auditing Purchases, Payabland Payroll

Auditing Inventoriand PPE

Auditing Cash and Investments

Filters