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Audit 441 Chapter 4

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Chapter 4 Audit Quiz

Chapter 4 Audit Quiz

Frage 1 von 16

1

risk is the risk that the auditor is exposed to financial loss or damage to his or her professional reputation from litigation, adverse publicity, or other events arising in connection with the audited financial statements.

Klicke und ziehe, um den Text zu vervollständigen.

    Engagement
    Audit
    Client

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Frage 2 von 16

1

Wähle von der Aufklappliste, um den Text zu vervollständigen.

( Audit, Inherent, Control ) risk is the risk that we miss a misstatement in the financial statements. It focuses on entire financial statements.

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Frage 3 von 16

1

Inherent risk is the likelihood that a material misstatement in the financial statements exists without considering the client's internal controls.

Wähle eins der folgenden:

  • WAHR
  • FALSCH

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Frage 4 von 16

1

Control risk is the risk that the client's internal controls will distract from potential misstatements.

Wähle eins der folgenden:

  • WAHR
  • FALSCH

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Frage 5 von 16

1

"Inherent control risk" and "client risk" are terms that can be used interchangeably. They both refer to the combination of risks that the client can control.

Wähle eins der folgenden:

  • WAHR
  • FALSCH

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Frage 6 von 16

1

Fülle die Lücke, um den Text zu vervollständigen

risk is the risk that the auditor is willing to accept that he or she will fail to detect a material misstatement in the financial statements.

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Frage 7 von 16

1

Wähle von der Aufklappliste, um den Text zu vervollständigen.

The audit risk model can be found with the following formula: AR = ( RMM, CR ) x DR

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Frage 8 von 16

1

Wähle von der Aufklappliste, um den Text zu vervollständigen.

An alternative equation for the audit risk model is: AR = (IR x CR) x ( DR, RMM )

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Frage 9 von 16

1

Increased RMM and decreased DR means you should increase the amount of testing.

Wähle eins der folgenden:

  • WAHR
  • FALSCH

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Frage 10 von 16

1

Increased IR with decreased DR means you should decrease the amount of testing.

Wähle eins der folgenden:

  • WAHR
  • FALSCH

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Frage 11 von 16

1

Increased CR means decreased DR, so the amount of testing will decrease.

Wähle eins der folgenden:

  • WAHR
  • FALSCH

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Frage 12 von 16

1

Increased AR means DR is increased, which means the amount of testing will decrease.

Wähle eins der folgenden:

  • WAHR
  • FALSCH

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Frage 13 von 16

1

If detection risk has gone up, that probably points to which of the following?

Wähle eine der folgenden:

  • Decreased amounts of testing

  • Increased amounts of testing

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Frage 14 von 16

1

Wähle von der Aufklappliste, um den Text zu vervollständigen.

The three conditions that usually exist when fraud occurs are opportunity, incentive, and ( rationalization, Identification, Discussion ).

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Frage 15 von 16

1

Which of the following is NOT an aspect of SAS 99

Wähle eine der folgenden:

  • Requires ‘brainstorming’ sessions to discuss how and where the entity’s financial statements might be susceptible to material misstatement due to fraud

  • Describes fraud and its characteristics

  • Requires development of specific measures to decrease detection risk.

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Frage 16 von 16

1

If fraud is suspected, the auditor should obtain additional evidence, consider the impact on the rest of the audit, discuss the problem with management on level above the level where the fraud occurred, suggest that the client consult with legal counsel, and consult legal counsel themselves.

Wähle eins der folgenden:

  • WAHR
  • FALSCH

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