Frage 1
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Evidence is used by which of the following professionals?
Antworten
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Auditors
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Scientists
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Lawyers
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All of the above
Frage 2
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An _________ programme is a list of audit procedures for an audit area or an entire audit.
Antworten
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Control
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Evidence
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Data
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Audit
Frage 3
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Characteristics that effect the reliability of evidence include:
Frage 4
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The following are all types of audit evidence except:
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Analytical procedures
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Physical examination
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Organization
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Confirmation
Frage 5
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An insurance policy is an example of:
Frage 6
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The Sarbanes-Oxley Act requires auditors of public companies to retain audit files for no less than:
Antworten
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Ten years
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Twenty years
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Three years
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Seven years
Frage 7
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Which of the following is an example of a supporting schedule which is support of specific amounts on the client's financial statements?
Antworten
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A. Reconciliation
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B. Scanning
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C. Trial balances
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All of the above
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A and B only
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C and B only
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A and C only
Frage 8
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If an auditor believes the financial statements of a client are not fairly presented then the auditor should:
Antworten
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Notify users through an auditor report
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Report the findings to the government
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Notify the external users by advertising its findings
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All of the above
Frage 9
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Fair representation in the financial statements:
Frage 10
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When an auditor believes a client is involved in illegal acts, the auditor should:
Antworten
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Help the client destroy all evidence of the illegal act
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Go to management at a level above those likely to be involved in the potential illegal act
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Withdraw from the engagement immediately
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Go to the press
Frage 11
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Audit objectives should be estimated for each of the following except:
Frage 12
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_____________ uses comparison and relationship to assess whether account balances or other data appear reasonable.
Antworten
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Test of details
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Internal details
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Analytical procedures
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Walk through tests
Frage 13
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___________ judgment should be used when setting and applying materiality guidelines.
Antworten
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Professional
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Minimum
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Amateur
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Maximum
Frage 14
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Materiality is allocated to accounts on the balance sheet while keeping the following items in mind:
Frage 15
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The risk that the portion of the population selected for review does not accurately represent the population, is what type of risk?
Antworten
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Sampling
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Audit
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Detection
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Inherent
Frage 16
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As inherent risk increases, planned detection risk
Antworten
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Stays the same
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Increases
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Decreases
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Becomes negative
Frage 17
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If the level of audit assurance is 97%, the level of acceptable audit risks is
Frage 18
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In evaluating engagement risks, the auditor should be aware of items such as:
Antworten
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The clients previous year's profits
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The clients method of financing growth
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The client liquidity position
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All of the above
Frage 19
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Factors affecting inherent risks include:
Frage 20
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The major limitation of using the audit risk model is the:
Antworten
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Objective nature of its components
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There is no limitation to the model
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Application of the model
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Subjective nature of its components
Frage 21
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Because of legal liability and loss of professional reputation most auditors are concerned about:
Antworten
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A. Status- quo auditing
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B. Over-auditing
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C. Under-auditing
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All of the above
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A and B only
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A and C only
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B and C only
Frage 22
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Materiality and risk are_________ related.
Antworten
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Inversely
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Directly
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Equally
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None of the above
Frage 23
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_________ smoothing is a form of earning management in which revenues and expenses are shifted between periods to reduce fluctuations in earnings.
Antworten
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Expense
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Equity
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Revenue
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Income
Frage 24
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Fraudulent financial reporting may be contributed to:
Antworten
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External Performance Pressures
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Lack of Segregation of Duties
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Internal Performance Pressures
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All of the above
Frage 25
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If an auditor discovers fraud, an auditor should:
Antworten
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Conduct further investigations
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Approach the appropriate level of management
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Consider withdrawing from the audit if the fraud is significant
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All of the above