Question 1

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 2

________ 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 3

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 4

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 5

A management representation letter is usually obtained at what time during the audit?

Accepted Answer

A) Before the engagement begins. 
B) At the beginning of the audit. 
C) At the audit report date. 
D) At the interim,or as control deficiencies are discovered. 
A) Before the engagement begins. 
B) At the beginning of the audit. 
C) At the audit report date. 
D) At the interim,or as control deficiencies are discovered.

Question 6

Known misstatements ________.

Accepted Answer

A) are those actually identified during the audit,so there is no uncertainty about their existence 
B) are those that probably exist,based on audit evidence examined 
C) are those that could exist over and above the total of known and likely misstatements because of the fundamental limitations of auditing 
D) are those for which the amount of possible misstatement cannot be precisely quantified 
A) are those actually identified during the audit,so there is no uncertainty about their existence 
B) are those that probably exist,based on audit evidence examined 
C) are those that could exist over and above the total of known and likely misstatements because of the fundamental limitations of auditing 
D) are those for which the amount of possible misstatement cannot be precisely quantified

Question 7

What are the three categories of uncorrected misstatements?

Accepted Answer

For evaluation,uncorrected misstatements

Question 8

An Other Matter is like an Emphasis of Matter paragraph except that it relates to information that is not required to be disclosed in the financial statements.

Accepted Answer

A) True 
 B)False

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

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

Which of the following statements regarding fair presentation is FALSE?

A management representation letter is usually obtained at what time during the audit?

Known misstatements ________.

What are the three categories of uncorrected misstatements?

An Other Matter is like an Emphasis of Matter paragraph except that it relates to information that is not required to be disclosed in the financial statements.

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

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

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

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

Which of the following statements regarding fair presentation is FALSE?

A management representation letter is usually obtained at what time during the audit?

Known misstatements ________.

What are the three categories of uncorrected misstatements?

An Other Matter is like an Emphasis of Matter paragraph except that it relates to information that is not required to be disclosed in the financial statements.

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

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