Kayla Harbaugh
Quiz por , criado more than 1 year ago

Auditing chapter 5 homework

5
0
0
Kayla Harbaugh
Criado por Kayla Harbaugh mais de 3 anos atrás
Fechar

Auditing chapter 5 homework

Questão 1 de 30

1

The PCAOB’s General Auditing Standards requires that an audit be performed by which type of person?

Selecione uma das seguintes:

  • An auditor with seasoned judgment in varying degrees of supervision and review

  • An auditor having the appropriate professional qualifications

  • An auditor with adequate technical and leadership skills

  • All of the above

Explicação

Questão 2 de 30

1

Which auditing standards apply to private companies?

Selecione uma das seguintes:

  • The AICPA Standards

  • The IASSB Standards

  • The Standards of the PCAOB

  • All of the above

Explicação

Questão 3 de 30

1

The AICPA Principles Governing an Audit include which of the following categories that guide the conduct of an audit?

Selecione uma das seguintes:

  • Purpose of an audit and premise upon which an audit is conducted

  • Responsibilities

  • Performance

  • All of the above

Explicação

Questão 4 de 30

1

What is the scope of applicability of the auditing standards of the AICPA?

Selecione uma das seguintes:

  • Public companies traded in the U.S.

  • Public companies traded in non-U.S. markets

  • Nonpublic companies in the U.S.

  • Nonpublic companies traded in non-U.S. markets

Explicação

Questão 5 de 30

1

Which of the following organizations provides auditing standards for public companies?

Selecione uma das seguintes:

  • GAO

  • AICPA

  • GAAP

  • PCAOB

Explicação

Questão 6 de 30

1

Which of the following factors has the greatest effect on the reliability of financial statements?

Selecione uma das seguintes:

  • The industry of the client

  • The client's internal control structure

  • The client's trend of earnings

  • The size of the client

Explicação

Questão 7 de 30

1

What is management’s responsibility with respect to the conduct of an audit?

Selecione uma das seguintes:

  • Preparing financial statements

  • Maintaining internal control over financial reporting

  • Providing the auditor with relevant information and access to personnel

  • All of the above

Explicação

Questão 8 de 30

1

Which of the following assertions address whether accounts have been included in the financial statements at appropriate amounts?

Selecione uma das seguintes:

  • Completeness assertion

  • Valuation or allocation assertion

  • Rights and obligations assertion

  • None of the above

Explicação

Questão 9 de 30

1

Which of the following is the primary assertion related to testing inventory on hand to see if it includes consignment goods?

Selecione uma das seguintes:

  • Rights and Obligations

  • Valuation

  • Existence

  • Completeness

Explicação

Questão 10 de 30

1

Which assertion is most closely related to the determination of the adequacy of the allowance for doubtful accounts?

Selecione uma das seguintes:

  • Rights and Obligations

  • Presentation and Disclosure

  • Valuation

  • Existence

Explicação

Questão 11 de 30

1

Which assertion addresses whether all transactions and accounts that should be included in the financial statements are included?

Selecione uma das seguintes:

  • Existence

  • Completeness

  • Rights and Obligations

  • Valuation

Explicação

Questão 12 de 30

1

Which assertion addresses whether the financial statement items are properly classified in the financial statements?

Selecione uma das seguintes:

  • Valuation

  • Presentation and Disclosure

  • Existence

  • Completeness

Explicação

Questão 13 de 30

1

Which of the following is a procedure that requests a direct written response to the auditor from a third party?

Selecione uma das seguintes:

  • Inspection

  • Inquiry

  • Confirmation

  • Observation

Explicação

Questão 14 de 30

1

Which of the following is a procedure which analyzes plausible relationships among financial and nonfinancial data?

Selecione uma das seguintes:

  • Analytical procedures

  • Observation

  • Scanning

  • Reviewing

Explicação

Questão 15 de 30

1

Which of the following terms describes procedures designed to detect material misstatements in accounts?

Selecione uma das seguintes:

  • Control tests

  • Substantive procedures

  • Business risk procedures

  • Risk assessment procedures

Explicação

Questão 16 de 30

1

Which of the following statements accurately describes the auditor’s reporting responsibility for a financial statement audit?

Selecione uma das seguintes:

  • The auditor will identify in the auditor’s report those circumstances in which auditing principles have not been consistently observed in the current period in comparison to the preceding period.

  • The auditor will state explicitly whether the financial statements are fairly presented in accordance with the applicable financial reporting framework.

  • The auditor will review adjusting journal entries for accuracy, and if the auditor concludes those entries are not reasonably accurate, the auditor must so state in the auditor’s report.

  • The auditor will express an unqualified opinion on the financial statements or will conduct additional audit procedures until such an opinion can be expressed.

Explicação

Questão 17 de 30

1

Which of the following is a reason why an auditor needs an understanding of internal controls?

Selecione uma das seguintes:

  • To provide individual comments on internal control non-compliance

  • To assess the risk of possible misstatements in the financial statements

  • To become comfortable that the client will pay its audit bills

  • To asses materiality

Explicação

Questão 18 de 30

1

Which of the following is not a typical accounting cycle?

Selecione uma das seguintes:

  • Inventory

  • Revenue

  • Internal controls

  • Cash

Explicação

Questão 19 de 30

1

Which of the following statements about assertions is true?

Selecione uma das seguintes:

  • All assertions are equally important for all accounts

  • The importance of an assertion depends on the account

  • Assertions are not related to accounts

  • None of the above

Explicação

Questão 20 de 30

1

Which of the following assertions would the auditor usually consider most relevant for accounts payable?

Selecione uma das seguintes:

  • Completeness

  • Valuation

  • Existence

  • Disclosure

Explicação

Questão 21 de 30

1

Which of the following is a use of audit documentation?

Selecione uma das seguintes:

  • Assisting the engagement team in planning and performing the audit

  • Assisting members of the engagement team responsible for supervising and reviewing the audit work

  • Retaining a record of matters of continuing significance to future audits of the same organization

  • All of the above

Explicação

Questão 22 de 30

1

Which of the following factors influence the risk of material misstatement?

Selecione uma das seguintes:

  • Business risks

  • Management incentives

  • IT risks

  • All of the above

Explicação

Questão 23 de 30

1

What does business risk include?

Selecione uma das seguintes:

  • Economic factors

  • Competitive factors

  • Regulatory risk

  • All of the above

Explicação

Questão 24 de 30

1

What does the effectiveness of internal controls influence?

Selecione uma das seguintes:

  • Inherent risk

  • Control risk

  • Risk of material misstatement

  • Both B and C

Explicação

Questão 25 de 30

1

Which statement is true concerning materiality?

Selecione uma das seguintes:

  • Materiality guidelines are specifically prescribed by the PCAOB

  • Materiality is not a useful concept in assessing internal control effectiveness

  • Materiality is a concept applied to financial statement presentation but not to disclosures

  • Misstatements are material if they could reasonably be expected to influence the decisions of users of the financial statements

Explicação

Questão 26 de 30

1

Which of the following statements is true regarding client acceptance or continuance decisions?

Selecione uma das seguintes:

  • The client acceptance/continuance decision is one of the most important factors in audit quality.

  • Potential audit fees are not a valid consideration in the acceptance or continuance decision.

  • Audit firms are not permitted to conduct background checks on the management of a potential client.

  • An audit firm cannot discontinue providing audit services to a client without just cause.

Explicação

Questão 27 de 30

1

Which of the following factors affect the substantive procedures performed in an audit?

Selecione uma das seguintes:

  • The subjectivity of the accounting process

  • Size of the account

  • Effectiveness of the relevant controls

  • All of the above affect the substantive procedures that are performed

Explicação

Questão 28 de 30

1

If the auditor’s assessment of the materiality of the account balance is high, what would be the respective effect on (1) the extent of substantive testing and (2) the nature of procedures performed?

Selecione uma das seguintes:

  • (1) More (2) More rigorous

  • (1) Less (2) Less rigorous

  • (1) Less (2) More rigorous

  • (1) More (2) Less rigorous

Explicação

Questão 29 de 30

1

An auditor gathers evidence on internal controls for which respective time periods for the purposes of expressing an opinion on (1) control effectiveness and for (2) testing controls in the financial statement period?

Control Effectiveness Financial Statement

Selecione uma das seguintes:

  • (1) Throughout the year (2) Throughout the year

  • (1) Throughout the year (2) As of year end

  • (1) As of year end (2) As of year end

  • (1) As of year end (2) Throughout the year

Explicação

Questão 30 de 30

1

Which of the following would not be a factor in whether a control weakness would be considered to be a material weakness as opposed to a significant deficiency?

Selecione uma das seguintes:

  • The materiality of the related balance

  • The volume of transactions affected

  • The nature of the client's industry

  • The subjectivity of the account balance

Explicação

Anterior
Próximo