Quiz
Auditing Theory Part 1
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Perguntas do quiz (20)
1As an auditor which of the following would be classified as an error?
- AIntentional omission of the recording of a transaction to benefit a third party.
- BMisappropriation of assets for the benefit of management.
- CMisinterpretation by management of the facts that existed when the financial statements were prepared.
- DPreparation of records by employee to cover a fraudulent transactions.
2Which of the following circumstances least likely indicate the possibility of fraud or error?
- AUnrealistic time deadlines for audit completion imposed by management.
- BLimitation in audit scope imposed by management.
- CConservative application of accounting principles.
- DSignificant difficult-to-audit figures in the accounts
3Which of management’s concerns with respect to implementing internal controls is the auditor primarily concerned?
- AEfficiency of operations.
- BReliability of financial reporting.
- CEffectiveness of operations.
- DCompliance with applicable laws and regulations
4Which of the following statements is not correct?
- AThe principal purpose in conducting a study and evaluation of the existing internal control system is for the independent auditor to maintain a state of independence in mental attitude in all matters related to the audit.
- BWorking papers can be destroyed after corporate and statutory retention requirements are met.
- CThe audit program contains the list of specific tasks to be performed and estimated time required.
- DAn audit program would not contain the documentation of system being reviewed.
5Which of the following conditions or events most likely would cause an auditor to have substantial doubt about an entity’s ability to continue as a going concern?
- ACash flows from operating activities are negative.
- BResearch and development projects are postponed.
- CSignificant related party transactions are pervasive.
- DStock dividends replace annual cash dividends.
6Competence as an independent auditor includes all of the following except
- AHaving the technical qualifications to perform the engagement
- BPossessing the ability to supervise and evaluate the quality of staff work
- CWarranting the infallibility of the work performed
- DConsulting others if additional technical information is needed
7Which of the following engagements do not require independence?
- AAssurance
- BCompilation
- CAudit
- DReview
8If permission from client to discuss its affairs with the proposed auditor is denied by the client, the predecessor auditor should:
- AKeep silent of the denial.
- BDisclose the fact that the permission to disclose is denied by the client.
- CDisclose adequately to proposed auditor all noncompliance made by the client.
- DSeek legal advice before responding to the proposed auditor
9Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor auditor regarding
- ADisagreements the predecessor had with the client concerning auditing procedures and accounting principles.
- BThe predecessor’s evaluation of matters of continuing accounting significance.
- CThe degree of cooperation the predecessor received concerning the inquiry of the client’s lawyer.
- DThe predecessor’s assessments of inherent risk and judgments about materiality.
10Tracing shipping documents to prenumbered sales invoices provides evidence that
- ANo duplicate shipments or billings occurred.
- BShipments to customers were properly invoiced.
- CAll goods ordered by customers were shipped.
- DAll prenumbered sales invoices were accounted for.
11Which of the following is not a component of an entity’s internal control?
- AControl risk.
- BControl activities.
- CMonitoring.
- DControl environment.
12The permanent file of an auditor’s working papers generally would not include
- ABond indenture agreements.
- BLease agreements.
- CWorking trial balance.
- DFlowchart of internal control
13The audit working paper that reflects the major components of an amount reported in the financial statements is the
- AInterbank transfer schedule.
- BCarry forward schedule.
- CSupporting schedule.
- DLead schedule.
14Cutoff tests designed to detect credit sales made before the end of the year that have been recorded in the subsequent year provide assurance about management’s assertion of
- APresentation.
- BCompleteness.
- CRights.
- DExistence.
15Which of the following is not an expert upon whose work an auditor may rely?
- AActuary.
- BAppraiser.
- CInternal auditor.
- DEngineer.
16A purpose of a management representation letter is to reduce
- AAudit risk to an aggregate level of misstatement that could be considered material.
- BAn auditor’s responsibility to detect material misstatements only to the extent that the letter is relied on.
- CThe possibility of a misunderstanding concerning management’s responsibility for the financial statements.
- DThe scope of an auditor’s procedures concerning related-party transactions and subsequent events.
17The primary reason an auditor requests letters of inquiry be sent to a client’s attorneys is to provide the auditor with
- AThe probable outcome of asserted claims and pending or threatened litigation.
- BCorroboration of the information furnished by management about litigation, claims, and assessments.
- CThe attorneys’ opinions of the client’s historical experiences in recent similar litigation.
- DA description and evaluation of litigation, claims, and assessments that existed at the balance sheet date.
18When an auditor has chosen a random sample and is using nonstatistical attributes sampling, that auditor
- ANeed not consider the risk of assessing control risk too low.
- BHas committed a nonsampling error.
- CWill have to use discovery sampling to evaluate the results.
- DShould compare the deviation rate of the sample to the tolerable deviation rate.
19The accounts payable department receives the purchase order form to accomplish all of the following except to
- ACompare invoice price to purchase order price
- BEnsure that the purchase had been properly authorized
- CEnsure that the goods had been received by the party requesting the goods
- DCompare quantity ordered to quantity purchased
20When comparative financial statements are presented, the fourth standard of reporting, which refers to financial statements "taken as a whole," should be considered to apply to the financial statements of the
- APeriods presented plus the one preceding period
- BCurrent period only
- CCurrent period and those of the other periods presented
- DCurrent and immediately preceding period only
Informações
- Descrição
- Good luck. God bless you! :)
- Autor
- Jona Rissa Carlos
- Idioma
- English
- Visualizações
- 126
- Etiquetas
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