Quiz
MCQ1
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Fragen in diesem Quiz (21)
1In order to calculate a level of planning materiality, auditors will often take a range of values. Which of the following is correct?
- ARevenue: 5% to 10%
- BTotal assets: 10% to 20%
- CNet assets: 2% to 5%
- DProfit after tax: 0.5% to 2%
2Financial involvement with a client will affect independence and may lead a reasonable observer to conclude that independence has been impaired. Which of the following is not a form of financial involvement with a client?
- ALoans to or from the client
- BFinancial interest resulting from being an administrator of any trust with a financial interest in the client
- CFinancial interest in a joint venture with a client
- DFees paid for audit engagement
3In an agreed-upon procedures engagement what matters generally have to be agreed between auditor and management?
- AThe skills of the audit team
- BNature, timing and extent of the specific procedures to be applied
- CIdentification of the corporate governance framework
- DThe intended user of the report
4How does the related services framework differ from the assurance framework?
- ARelated services enhance the degree of confidence intended users can have
- BRelated services claim compliance with ISAs
- CRelated services engagements do not result in an opinion
- DRelated services claim compliance with ISAEs
5Quality control policies and procedures that are established to decide whether to accept a new client should provide the audit firm with reasonable assurance that:
- AThe likelihood of associating with clients whose management lacks integrity is minimized.
- BThe audit firm's duty to the public concerning the acceptance of new clients is satisfied
- CSufficient corroborating evidence to support the financial statement assertions is available.
- DClient-prepared schedules that are necessary for the engagement are completed on a timely
6Detection risk differs from both control risk and inherent risk in that detection risk
- AArises from risk factors relating to fraud.
- BExists independently of the financial statement audit
- CShould be assessed in non-quantitative terms
- DCan be changed at the auditor's discretion
7Which of the following best represents a key control for ensuring sales are properly authorized when assessing control risks for sales?
- AThe separation of duties between the billing department and the cash receipts approval department
- BThe use of an approved price list to determine unit selling price.
- CSales orders are sent to the credit department for approval
- DCopies of approved sales orders sent to the shipping, billing, and accounting departments.
8When an accountant is not independent with respect to an entity, which of the following types of compilation reports may be issued?
- AThe standard compilation report may be issued, regardless of independence.
- BA compilation report may be issued if the engagement is upgraded to a review.
- CA compilation report with negative assurance may be issued.
- DA compilation report with special wording that notes the accountant's lack of independence may be issued.
9Which of the following procedures would an accountant most likely perform during an engagement to review the financial statements of a client?
- ACommunicate internal control deficiencies to senior management.
- BReview the predecessor accountant's working papers.
- CInquire of management about related party transactions.
- DCorroborate litigation information with the entity's attorney.
10Which of the following techniques does an auditor ordinarily select in assessing control risk?
- AInquiry and analytical procedures
- BInspection and verification.
- CComparison and confirmation.
- DObservation and re-performance
11The term 'scope of an audit' refers to the audit procedures deemed necessary in the circumstances:
- AIn order to cover auditor liability
- BAs required by IFRSs
- CAs required by IASs
- DTo achieve the objective of the audit
12Which of the following is not a benefit of international auditing standards?
- AInvestors can more readily comprehend a set of financial statements drawn up in another country
- BForeign investors are more likely to channel funds into a developing country
- CEncourage and assist developing nations to adopt national standards
- DFinancial statement disclosure is more consistent
13Which of the following parties is responsible for establishing an entity’s internal controls?
- ACommittee of Sponsoring Organizations
- BManagement and auditors
- CAuditors
- DManagement
14Most auditors assess inherent risk as high for related parties and related-party transactions because:
- AA. Of the lack of independence between the parties
- BB. It is required by generally accepted accounting principles.
- CC. Of the accounting disclosure requirement
- DA and B
- EA and C
- FB and C
15A measure of the auditor’s assessment of the likelihood that there are material misstatements in an account before considering the effectiveness of the client’s internal control is:
- AAcceptable audit risk.
- BControl risk.
- CInherent risk.
- DStatistical risk.
16Which of the following is not one of the three main reasons why the auditor should properly plan engagements?
- ATo enable the auditor to obtain sufficient competent evidence.
- BTo avoid misunderstandings with the client.
- CTo help keep audit costs reasonable.
- DTo enable proper on-the-job training of employees.
17When an auditor calculates the gross margin as a percent of sales and compares it with previous periods, this type of evidence is called
- AAnalytical review.
- BPhysical examination.
- CInquiry.
- DObservation.
18After the preliminary judgment about materiality has been established, auditors may
- ANot adjust it.
- BAdjust it either downward or upward.
- CAdjust it downward only.
- DAdjust it upward only.
19Why do auditors establish a preliminary judgment about materiality?
- ASo that the client can know what records to make available to the auditor.
- BTo determine what level of staffing is required for the audit.
- CTo help the auditor plan the appropriate evidence to accumulate.
- DNone of the available options
20When auditors allocate the preliminary judgment about materiality to account balances, the materiality allocated to any given account balance is referred to in ISA 530 Audit Sampling as:
- AThe materiality range.
- BTolerable misstatement.
- CTolerable materiality.
- DThe error range.
21If it is probable that the judgment of a reasonable person would have been changed or influenced by the omission or misstatement of information, then that information is, by definition of IAS 320 – Audit Materiality,
- AInsignificant.
- BMaterial.
- CSignificant.
- DRelevant.
Informationen
- Beschreibung
- Advanced Audit Principles and Practice in class test
- Autor
- clara.azurmendi
- Sprache
- English
- Aufrufe
- 617
- Schlagwörter
- Bewertung
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