Test
Auditing chapter 6 pre quiz
Preguntas del test (10)
1An auditor determines that management integrity is high, the risk of material misstatement is low, and the client's internal controls are effective. Which of the following conclusions can be reached regarding the need to obtain direct evidence about the account balances?
- ADirect evidence of account balances is not needed.
- BDirect evidence can be obtained solely through analytical procedures.
- CDirect evidence can be limited to material account balances, and the extent of testing should be sufficient to corroborate the auditor's assessment of low risk.
- DDirect evidence should be obtained for all accounts, regardless of the auditor's assessment of control risk.
2The auditor is testing the completeness assertion. Which of the following statements is true regarding the auditor's work?
- AThe auditor would take a sample of source documents and obtain additional supporting documents for those transactions.
- BThe auditor would take a sample of recorded transactions and obtain supporting documentation for those transactions.
- CThe auditor would perform a process referred to as tracing.
- DFor a sample of items recorded in the sales journal, the auditor would obtain the related shipping documents and customer orders.
3The auditor is gathering evidence to test the assertion that the client's capitalization of leased equipment assets is properly valued. Which of the following sources of evidence will the auditor generally find to be of the highest quality (most reliable and relevant)?
- AInspection of documents, including the lease contract and recalculation of capitalized amount and current amortization.
- BInspection of the leased equipment.
- CConfirmation of the original cost of the equipment with the lessor.
- DConfirmation of the current purchase price for similar equipment with vendors.
4Which of the following transactions would be least likely to be a related-party transaction?
- AWriting off obsolete inventory prior to year-end.
- BA purchase transaction between an entity and its owners.
- CAn exchange of property between an entity and a joint venture in which the entity has part ownership.
- DA debt-related transaction between an entity and one of its SPEs
5Which of the following procedures would an auditor typically perform first when assessing the reasonableness of management's estimate of its pension liability?
- ADevelop an understanding of management's process for developing the estimate.
- BInspect documentation related to the pension transactions that the client has recorded.
- CReview transactions occurring prior to the report release date to assess the reasonableness of management estimates.
- DIdentify sensitive management assumptions.
6Which of the following statements describes a purpose of an audit program?
- AAn audit program is used to specify the procedures to be performed in obtaining audit evidence.
- BAn audit program is used to record the completion of each audit step.
- CAn audit program is useful for monitoring the progress of the audit.
- DAll of these statements describe a purpose of an audit program.
7A procedure that involves only inspection of documentation is usually considered to be of lower quality than a procedure involving reperformance.
- AVerdadero
- BFalso
8Substantive analytical procedures are required on every audit.
- AVerdadero
- BFalso
9One of the most rigorous approaches to substantive analytical procedures is regression analysis.
- AVerdadero
- BFalso
10The auditor should use a standardized audit program, without any modifications, for all clients.
- AVerdadero
- BFalso
Información
- Descripción
- Auditing chapter 6 pre quiz
- Autor
- Kayla Harbaugh
- Idioma
- English
- Visitas
- 36
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