acc 309 (1)

79問 • 1年前

問題一覧

A measure of how willing the auditor is to accept that the financial statements may be materially misstated after the audit is completed and an unqualified opinion has been issued is the

acceptable audit risk.

The first phase in planning an audit and designing an audit approach is to

accept the client and perform initial audit planning.

________ is the risk that the financial statements contain a material misstatement due to fraud or error prior to the audit.

Risk of material misstatement

In what order should the following steps occur? A. Set preliminary judgment of materiality and performance materiality. B. Understand the client's business and industry. C. Perform preliminary analytical procedures. D. Accept the client and perform initial audit planning.

D, B, C, A

The auditor uses knowledge gained from the understanding of the client's business and industry to assess

client business risk.

Which of the following is an accurate statement regarding audit evidence?

The auditor uses evidence to determine whether the statements are fairly presented.

All evidence must have the same level of persuasiveness.

FALSE

Auditors use evidence to help them draw conclusions.

TRUE

An example of less persuasive evidence to an auditor is the observation of the physical inventory taken by an audit client.

FALSE

An example of highly persuasive evidence to an auditor is the responses to questions on a questionnaire by audit client employees.

FALSE

An ________ is the detailed instruction that explains the audit evidence to be obtained during the audit.

audit procedure

Which of the following is not one of the four decisions about what evidence to gather and how much of it to accumulate in the development of an audit program?

which accounts must agree to the general ledger

When making audit evidence decisions,

audit engagement software can assist the auditor in making evidence decisions.

Examine the cash receipts journal in the accounting system and compare the amounts receivedto the corresponding amounts invoiced in the revenue accounting system and to the bank statement evidencing the deposit. This is an example of which of the following?

audit procedure

________ often incorporate sample size, items to select, and timing into the procedure.

Audit procedures

After deciding on the sample size for a particular audit procedure, the auditor has a choice of several different methods to select the specific population items to test.

TRUE

Timing is an important factor for the auditor to take into consideration in gathering audit evidence. For example, auditors often prefer to do test counts of the inventory as close as possible to the date of the audit opinion.

FALSE

The audit program for inventories should be the same as the audit program for account receivables.

FALSE

Audit evidence has two primary qualities for the auditor; relevance and reliability. Given the choices below, which provides the auditor with the most reliable audit evidence?

confirmation of accounts receivable balance received from a customer

Which of the following is not a characteristic of the reliability of evidence?

education of auditor

The auditor must gather sufficient and appropriate evidence during the course of the audit. Sufficient evidence must

be persuasive enough to enable the auditor to issue an audit report.

Audit evidence obtained directly by the auditor will not be reliable if

the auditor lacks the competence to evaluate the evidence.

Appropriateness of evidence is a measure of the

quality of evidence.

Which of the following statements is not correct?

Cost is an adequate justification for not gathering an adequate sample size.

For audit evidence to be compelling to the auditor it must be sufficient and appropriate. Which statement below is not correct regarding the appropriateness of audit evidence?

An auditor's opinion, to be economically useful and profitable to the auditing firm needs to beformed within a reasonable time and based on evidence obtained that assures profits for the auditing firm.

Which of the following is a correct statement regarding audit evidence?

The auditor must obtain a sufficient amount of relevant and reliable evidence to form an opinion on the fairness of the financial statements.

Which of the following is the most objective type of evidence?

the physical count of securities and cash

Which of the following statements is not a correct statement regarding audit evidence?

Documentary evidence is more reliable when it is received by the auditor indirectly rather than directly.

Evidence is usually more persuasive for balance sheet accounts when it is obtained

as close to the balance sheet date as possible.

Which of the following statements is true?

Evidence obtained directly by the auditor may not be reliable if the auditor lacks the qualifications to evaluate the evidence.

Which of the following statements relating to the competence of evidential matter is always true?

Evidence must be both reliable and relevant to be considered appropriate.

Audit evidence to support an opinion about the fairness of a client's financial statements consists entirely of written information.

FALSE

The relevance of audit evidence depends on the audit objective being tested.

TRUE

Inquiries of the client are usually sufficient to provide appropriate evidence to satisfy an audit objective.

FALSE

Objective evidence is more reliable, and hence more persuasive, than subjective evidence.

TRUE

When the auditor uses tracing as an audit procedure for tests of transactions, he or she is primarily concerned with which audit objective?

completeness

When the auditor uses the audit procedure vouching, he or she is primarily concerned with which of the following audit objectives when testing classes of transactions?

occurrence

When auditors use documentation to support recorded transactions and amounts, the process isusually called

vouching.

The objective of an audit of the financial statements is an expression of an opinion on

the fairness of the financial statements in all material respects.

If the auditor believes that the financial statements are not fairly stated or is unable to reach a conclusion because of insufficient evidence, the auditor

has the responsibility of notifying financial statement users through the auditor's report.

Auditors accumulate evidence to

reach a conclusion about the fairness of the financial statements.

Which of the following is not one of the steps used to develop audit objectives?

know the proper type of audit opinion to issue

For publicly listed companies, the auditor also issues which of the following reports in addition to a report containing the auditor's opinion?

a report on internal control over financial reporting

When developing the audit objectives, the first step is to divide the financial statements into cycles.

FALSE

The responsibility for adopting sound accounting policies and maintaining adequate internal control rests with the

company management.

Management is not responsible for which of the following?

issuing their own opinion on the fairness of the financial statements

Because they operate the business on a daily basis, a company's management knows more about the company's transactions and related assets, liabilities, and equity than the auditors

TRUE

The annual reports of many public companies include a statement about management's responsibilities and relationship with the CPA firm.

TRUE

The auditors determine which disclosures must be presented in the financial statements.

FALSE

The Sarbanes-Oxley Act provides for criminal penalties

TRUE

The auditor knows more about an audit client's transactions than management does.

FALSE

Annual reports of many public companies contain a statement about management's responsibilities for the financial statements and their relationship with the CPA firm.

TRUE

The Sarbanes-Oxley Act requires the auditor to certify the quarterly and the annual financial statements required to be filed by publicly listed firms with the Securities and Exchange Commission.

FALSE

In signing the quarterly and the annual financial statements filed with the Securities and Exchange Commission, management certifies the financial statements comply with the Securities Exchange Act of 1933.

FALSE

The auditor has no responsibility to plan and perform the audit to obtain reasonable assurance that misstatements that are not ________ are detected.

material to the financial statements

Fraudulent financial reporting is most likely to be committed by whom?

company management

Which of the following would most likely be deemed a direct effect illegal act?

violation of federal income tax laws

The concept of reasonable assurance indicates that the auditor is

not a guarantor of the correctness of the financial statements.

Which of the following is the auditor least likely to do when aware of an illegal act?

contact the local law enforcement officials regarding potential criminal wrongdoing

An auditor discovers that the company's bookkeeper unintentionally made a mistake in calculating the amount of the quarterly sales. This is an example of

an error.

An auditor has a duty to

provide reasonable assurance that material misstatements will be detected.

If the auditor were responsible for making certain that all of management's assertions in the financial statements were absolutely correct,

audits would not be economically practical

In comparing management fraud with employee fraud, the auditor's risk of failing to discoverthe fraud is

greater for management fraud because of management's ability to override existing internal controls.

Misappropriation of assets

causes harm to stockholders because the assets are no longer available to their rightful owners.

When comparing the auditor's responsibility for detecting employee fraud and for detecting errors, the profession has placed the responsibility

equally on discovering errors and employee fraud.

If there is collusion among management, the chance a normal audit would uncover such acts is

very low.

When the auditor becomes aware of or suspects noncompliance with laws and regulations,

all of the above.

When the auditor identifies or suspects noncompliance with laws and regulations, the auditor

may disclaim an opinion on the basis of scope limitations if he or she is precluded by management from obtaining sufficient appropriate evidence.

When an auditor knows that an illegal act has occurred, he or she must

consider the effects on the financial statements, including the adequacy of disclosure.

When reporting identified or suspected noncompliance,

the auditor should communicate all material noncompliance matters to those charged with governance.

Another term for misappropriation of assets is

employee fraud.

The provisions of many laws and regulations affect the financial statements

only indirectly.

If a client has violated federal tax laws,

and the amount is significant, the auditor should communicate with those charged with governance.

In which of the following situations were the financial statements not misstated?

Assets were taken, but the asset misappropriation was discovered and appropriately disclosed in the financial statements.

Errors are usually more difficult for an auditor to detect than frauds.

FALSE

Other than inquiring of management about policies they have established to prevent illegal acts and whether management knows of any laws or regulations that the company has violated, the auditor should not search for illegal acts that do not have a direct effect on the financial statements unless there is reason to believe they may exist.

TRUE

When an auditor believes that an illegal act may have occurred, the first step he or she shouldtake is to gather additional evidence to determine the extent of the illegality and if there is a direct impact on the financial statements.

TRUE

Audits are expected to provide a higher degree of assurance for the detection of material frauds than is provided for an equally material error.

FALSE

Audits are expected to provide a higher degree of assurance for the detection of material frauds than is provided for an equally material error.

FALSE

acc 309

Tlotlo Legotho · 55問 · 1年前

acc 309

55問 • 1年前

Tlotlo Legotho

acc 308

Tlotlo Legotho · 10問 · 1年前

acc 308

10問 • 1年前

Tlotlo Legotho

mgt 301 (1)

Tlotlo Legotho · 100問 · 1年前

mgt 301 (1)

100問 • 1年前

Tlotlo Legotho

mgt 301 (2)

Tlotlo Legotho · 82問 · 1年前

mgt 301 (2)

82問 • 1年前

Tlotlo Legotho

mgt 301 (3)

Tlotlo Legotho · 100問 · 1年前

mgt 301 (3)

100問 • 1年前

Tlotlo Legotho

acc309 materiality and risk

Tlotlo Legotho · 89問 · 1年前

acc309 materiality and risk

89問 • 1年前

Tlotlo Legotho

acc309 internal control and coso

Tlotlo Legotho · 96問 · 1年前

acc309 internal control and coso

96問 • 1年前

Tlotlo Legotho

acc309 Fraud Audit

Tlotlo Legotho · 89問 · 1年前

acc309 Fraud Audit

89問 • 1年前

Tlotlo Legotho

acc309 audit planning and analytical procedures

Tlotlo Legotho · 100問 · 1年前

acc309 audit planning and analytical procedures

100問 • 1年前

Tlotlo Legotho

mgt 301 (4)

Tlotlo Legotho · 11問 · 1年前

mgt 301 (4)

11問 • 1年前

Tlotlo Legotho

問題一覧

A measure of how willing the auditor is to accept that the financial statements may be materially misstated after the audit is completed and an unqualified opinion has been issued is the

acceptable audit risk.

The first phase in planning an audit and designing an audit approach is to

accept the client and perform initial audit planning.

________ is the risk that the financial statements contain a material misstatement due to fraud or error prior to the audit.

Risk of material misstatement

D, B, C, A

The auditor uses knowledge gained from the understanding of the client's business and industry to assess

client business risk.

Which of the following is an accurate statement regarding audit evidence?

The auditor uses evidence to determine whether the statements are fairly presented.

All evidence must have the same level of persuasiveness.

FALSE

Auditors use evidence to help them draw conclusions.

TRUE

An example of less persuasive evidence to an auditor is the observation of the physical inventory taken by an audit client.

FALSE

An example of highly persuasive evidence to an auditor is the responses to questions on a questionnaire by audit client employees.

FALSE

An ________ is the detailed instruction that explains the audit evidence to be obtained during the audit.

audit procedure

Which of the following is not one of the four decisions about what evidence to gather and how much of it to accumulate in the development of an audit program?

which accounts must agree to the general ledger

When making audit evidence decisions,

audit engagement software can assist the auditor in making evidence decisions.

audit procedure

________ often incorporate sample size, items to select, and timing into the procedure.

Audit procedures

After deciding on the sample size for a particular audit procedure, the auditor has a choice of several different methods to select the specific population items to test.

TRUE

FALSE

The audit program for inventories should be the same as the audit program for account receivables.

FALSE

Audit evidence has two primary qualities for the auditor; relevance and reliability. Given the choices below, which provides the auditor with the most reliable audit evidence?

confirmation of accounts receivable balance received from a customer

Which of the following is not a characteristic of the reliability of evidence?

education of auditor

The auditor must gather sufficient and appropriate evidence during the course of the audit. Sufficient evidence must

be persuasive enough to enable the auditor to issue an audit report.

Audit evidence obtained directly by the auditor will not be reliable if

the auditor lacks the competence to evaluate the evidence.

Appropriateness of evidence is a measure of the

quality of evidence.

Which of the following statements is not correct?

Cost is an adequate justification for not gathering an adequate sample size.

For audit evidence to be compelling to the auditor it must be sufficient and appropriate. Which statement below is not correct regarding the appropriateness of audit evidence?

Which of the following is a correct statement regarding audit evidence?

The auditor must obtain a sufficient amount of relevant and reliable evidence to form an opinion on the fairness of the financial statements.

Which of the following is the most objective type of evidence?

the physical count of securities and cash

Which of the following statements is not a correct statement regarding audit evidence?

Documentary evidence is more reliable when it is received by the auditor indirectly rather than directly.

Evidence is usually more persuasive for balance sheet accounts when it is obtained

as close to the balance sheet date as possible.

Which of the following statements is true?

Evidence obtained directly by the auditor may not be reliable if the auditor lacks the qualifications to evaluate the evidence.

Which of the following statements relating to the competence of evidential matter is always true?

Evidence must be both reliable and relevant to be considered appropriate.

Audit evidence to support an opinion about the fairness of a client's financial statements consists entirely of written information.

FALSE

The relevance of audit evidence depends on the audit objective being tested.

TRUE

Inquiries of the client are usually sufficient to provide appropriate evidence to satisfy an audit objective.

FALSE

Objective evidence is more reliable, and hence more persuasive, than subjective evidence.

TRUE

When the auditor uses tracing as an audit procedure for tests of transactions, he or she is primarily concerned with which audit objective?

completeness

When the auditor uses the audit procedure vouching, he or she is primarily concerned with which of the following audit objectives when testing classes of transactions?

occurrence

When auditors use documentation to support recorded transactions and amounts, the process isusually called

vouching.

The objective of an audit of the financial statements is an expression of an opinion on

the fairness of the financial statements in all material respects.

If the auditor believes that the financial statements are not fairly stated or is unable to reach a conclusion because of insufficient evidence, the auditor

has the responsibility of notifying financial statement users through the auditor's report.

Auditors accumulate evidence to

reach a conclusion about the fairness of the financial statements.

Which of the following is not one of the steps used to develop audit objectives?

know the proper type of audit opinion to issue

For publicly listed companies, the auditor also issues which of the following reports in addition to a report containing the auditor's opinion?

a report on internal control over financial reporting

When developing the audit objectives, the first step is to divide the financial statements into cycles.

FALSE

The responsibility for adopting sound accounting policies and maintaining adequate internal control rests with the

company management.

Management is not responsible for which of the following?

issuing their own opinion on the fairness of the financial statements

Because they operate the business on a daily basis, a company's management knows more about the company's transactions and related assets, liabilities, and equity than the auditors

TRUE

The annual reports of many public companies include a statement about management's responsibilities and relationship with the CPA firm.

TRUE

The auditors determine which disclosures must be presented in the financial statements.

FALSE

The Sarbanes-Oxley Act provides for criminal penalties

TRUE

The auditor knows more about an audit client's transactions than management does.

FALSE

Annual reports of many public companies contain a statement about management's responsibilities for the financial statements and their relationship with the CPA firm.

TRUE

The Sarbanes-Oxley Act requires the auditor to certify the quarterly and the annual financial statements required to be filed by publicly listed firms with the Securities and Exchange Commission.

FALSE

The auditor has no responsibility to plan and perform the audit to obtain reasonable assurance that misstatements that are not ________ are detected.

material to the financial statements

Fraudulent financial reporting is most likely to be committed by whom?

company management

Which of the following would most likely be deemed a direct effect illegal act?

violation of federal income tax laws

The concept of reasonable assurance indicates that the auditor is

not a guarantor of the correctness of the financial statements.

Which of the following is the auditor least likely to do when aware of an illegal act?

contact the local law enforcement officials regarding potential criminal wrongdoing

An auditor discovers that the company's bookkeeper unintentionally made a mistake in calculating the amount of the quarterly sales. This is an example of

an error.

An auditor has a duty to

provide reasonable assurance that material misstatements will be detected.

If the auditor were responsible for making certain that all of management's assertions in the financial statements were absolutely correct,

audits would not be economically practical

In comparing management fraud with employee fraud, the auditor's risk of failing to discoverthe fraud is

greater for management fraud because of management's ability to override existing internal controls.

Misappropriation of assets

causes harm to stockholders because the assets are no longer available to their rightful owners.

When comparing the auditor's responsibility for detecting employee fraud and for detecting errors, the profession has placed the responsibility

equally on discovering errors and employee fraud.

If there is collusion among management, the chance a normal audit would uncover such acts is

very low.

When the auditor becomes aware of or suspects noncompliance with laws and regulations,

all of the above.

When the auditor identifies or suspects noncompliance with laws and regulations, the auditor

may disclaim an opinion on the basis of scope limitations if he or she is precluded by management from obtaining sufficient appropriate evidence.

When an auditor knows that an illegal act has occurred, he or she must

consider the effects on the financial statements, including the adequacy of disclosure.

When reporting identified or suspected noncompliance,

the auditor should communicate all material noncompliance matters to those charged with governance.

Another term for misappropriation of assets is

employee fraud.

The provisions of many laws and regulations affect the financial statements

only indirectly.

If a client has violated federal tax laws,

and the amount is significant, the auditor should communicate with those charged with governance.

In which of the following situations were the financial statements not misstated?

Assets were taken, but the asset misappropriation was discovered and appropriately disclosed in the financial statements.

Errors are usually more difficult for an auditor to detect than frauds.

FALSE

TRUE

Audits are expected to provide a higher degree of assurance for the detection of material frauds than is provided for an equally material error.

FALSE

Audits are expected to provide a higher degree of assurance for the detection of material frauds than is provided for an equally material error.

FALSE