Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Auditing Expert

problem 1: In the ARM, AR = IR * CR * DR, which type of risk is considered to be more in the auditor's "control," as compared to the others?

a) Detection risk
b) Inherent risk
c) Control risk
d) Audit risk

problem 2: True or false. Materiality is always a matter of dollar amount.

a) True.
b) False.

problem 3: Which of the following is/are not among the management assertions corroborated by audit evidence? (more than one answer possible)

a) Existence/occurrence.
b) Completeness/cutoff.
c) Rights & obligations.
d) Valuation and allocation.
e) Presentation and disclosure.
f) The butler did it in the dining room with the gun.

problem 4: True or False. Auditors are responsible for creating financial statements free of material misstatement.

a) True.
b) False.

problem 5: Select the best answer.

a) Auditing financial statements engagements = subset of attestation engagements = subset of assurance engagements.
b) Assurance is a subset of auditing. All assurance engagements are audits, but not all audits are assurance engagements.
c) Attestation is a subset of auditing. All attestation engagements are audits, but not all audits are attestation engagements.

problem 6: Which of the given are needed to become a CPA in Texas (several answers might apply).

a) Meeting certain educational requirements
b) Passing the Texas CPA exam
c) Obtaining professional experience under the supervision of a CPA.

problem 7: The Accounting Standards Board (ASB) lists three fundamental principles of auditing: responsibilities, performance, and reporting. Fulfilling the performance principle, an auditor has to obtain a reasonable level of assurance (but not absolute) that the presentation of the financial statements as a whole are free of material misstatement whether due to fraud or error.

Meeting this requirement needs all of the following except:

a) Plan work and supervise assistants.
b) Determine and apply materiality levels.
c) Recognize and assess the risk of material misstatement whether due to fraud or error, based on an understanding of the entity, its environment, and its internal controls.
d) Meet the parents.
e) Design and implement proper responses to assessed risks in order to obtain sufficient, proper audit evidence regarding whether material misstatements exist.

problem 8: True or false. Each of the given sources of rules of conduct can be said to be part of the "alphabet soup" of ethics rule makers:

State boards of accountancy
AICPA
State societies of CPAs
SEC
PCAOB

a) True
b) False

problem 9. True or false. When an auditor is put in a position of having to review his or her own work, there may be an independence issue.

a) True
b) False

problem 10: Match terms with their best definitions.

Potential Matches:

1) wrongful or criminal deception intended to result in financial or personal gain
2) mistake
3) breakfast food of debatable deliciousness
4) management deliberately misleads creditors, investors, and/or other users of information by making material misrepresentations of fact

a) Fraud
b) Error
c) Management fraud
d) Frosted mini wheats

problem 11: If tests of controls induce the audit team to change the assessed level of control risk for fixed assets from 0.4 to 1.0 and audit risk (0.5) and inherent risk remains constant, the acceptable level of detection risk is most likely to:

a) Change from 0.25 to 0.1
b) Change from 0.1 to 0.04
c) Not change
d) Change from 0.2 to 0.3

problem 12: Match term to definition.

Potential Matches:

1) Testing management assertion of existence/occurrence. Testing "down." Checking summary listing (journal) against source documents.
2) Testing management assertion of completeness. Testing "up." Checking source documents up to summary listing (journal).

a) Vouching
b) Tracing

problem 13: Match types of risks to their definitions.

Potential Matches:

1) Likelihood that an error or fraud will occur and not be caught by either internal controls or auditor procedures.
2) Likelihood that an error or fraud will not be caught by the auditor's procedures.
3) Likelihood that an error or fraud will not be caught by the client's internal controls.
4) Likelihood that an error or fraud will enter the accounting information system.

a) Detection risk
b) Audit risk
c) Control risk
d) Inherent risk

Auditing, Accounting

  • Category:- Auditing
  • Reference No.:- M9904

Have any Question? 


Related Questions in Auditing

Objectivesthis assignment is designed to assess students

OBJECTIVES This assignment is designed to assess students' ability to: - Produce a concise detailed report about the importance of information security audit policy and its components - To have excellent understanding re ...

Assignment audit assurance and compliancebullthis

ASSIGNMENT: Audit, Assurance and Compliance • This assignment is to be submitted in accordance with assessment policy stated in the Subject Outline and Student Handbook. • It is the responsibility of the student who is s ...

Assignment question 1impulse pty ltd impulse is an

Assignment Question ( 1) Impulse Pty Ltd (Impulse) is an entertainment system manufacturer that was established in 2005. Your audit firm King & Queen have been the auditor of Impulse since its formation. The audit report ...

Develop critical analysis skills in relation to auditor

Develop critical analysis skills in relation to auditor independence and issues in accepting audit engagements. Background information This assignment is based on the Professional Application Question 2.37 in your e-text ...

Audit report assignmentinstructions activities you will

Audit Report Assignment Instructions (Activities you will perform to help you write your assignment report): • Public Company is Under Armour, Inc. • Access the financial statements for a recent year through the SEC fili ...

Assignmenta credit union is developing a new ais the

Assignment A credit union is developing a new AIS. The internal auditors suggest planning the systems development process in accordance with the SDLC concept. The following nine items are identified as major systems deve ...

Write a 750- to 1050-word paper on fraud auditing and it

Write a 750- to 1,050-word paper on fraud auditing and IT auditing. Describe the different kinds of fraud andthe Fraud Triangle, an auditor's responsibility to identify and assess fraud. Describe the specific risks, bene ...

Assignment question 1impulse pty ltd impulse is an

Assignment Question ( 1) Impulse Pty Ltd (Impulse) is an entertainment system manufacturer that was established in 2005. Your audit firm King & Queen have been the auditor of Impulse since its formation. The audit report ...

Assignment 4 corners community nursery incthe organizations

Assignment: 4 Corners Community Nursery INC. The organization's mission is to act as a nursery school providing an enrichment program for pre-school children. Link to their website http://www.4ccn.org Link to IRS form 99 ...

Internal audithow could the effectiveness of the internal

Internal Audit How could the effectiveness of the internal audit function be improved to obtain better protection of shareholders and enable external auditors to provide a higher quality of audit opinion? Should any such ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen