Exam 17: Auditing and Evaluating the AIS

"Supervision," as associated with generally accepted auditing standards applies to: (i) inexperienced auditors, (ii) auditors without CPA licenses, (iii) auditors with CPA licenses.

Why does a financial statement auditor evaluate management's credentials after assessing management's integrity?

An auditor carefully documents every conclusion reached and every balance calculated in a financial statement audit because of which auditing standard?

After examining a firm's accounting information system, an auditor concluded that the firm's financial statements are fairly presented, thus fulfilling which auditing standard?

In most financial statement audits, ___ immediately precedes compliance testing.

Which type of audit is not indicated by any of the situations above?

The "completeness" assertion associated with financial statement audits is most closely associated with which general auditing standard?

Which of the following is a field work auditing standard?

Which type of audit looks "inside the box?"

Your school's accounting club will soon host a one-day seminar on auditing and evaluating accounting information systems. You know you'll be talking with experienced auditors during the seminar; you want to demonstrate your knowledge of auditing to make a good impression. -List, in order, the steps commonly associated with a financial statement audit.

Flowcharts and other forms of systems documentation are useful in: (i) operational audits, (ii) investigative audits.

A financial statement auditor completed the following steps in a recent engagement. Number the steps in the order of their occurrence based on the generic audit steps discussed in the text. a. Compose an unqualified opinion. b. Confirm the existence of inventory. c. Determine risk exposures. d. Interview employees about management's overall attitude. e. Obtain copies of college transcripts and professional certifications.

In most financial statement audits, what happens immediately after assessing management's integrity?

All of the following link accounting information systems with auditing except:

An investigative auditor planned to complete the following actions; number them in their preferred order of occurrence. a. Discuss evidence obtained in other steps with the main suspect. b. Interview accounting employees who created journal entries to cover up an inventory theft. c. Obtain copies of purchase orders. d. Question receiving department employees that may have observed inventory theft. e. Review video surveillance tapes.

Examining remittance advices in a financial statement audit helps fulfill which auditing standard?