Auditing Theory Part 1

Pregunta 1 de 20

1

As an auditor which of the following would be classified as an error?

Selecciona una de las siguientes respuestas posibles:

Intentional omission of the recording of a transaction to benefit a third party.
Misappropriation of assets for the benefit of management.
Misinterpretation by management of the facts that existed when the financial statements were prepared.
Preparation of records by employee to cover a fraudulent transactions.

Explicación

Pregunta 2 de 20

1

Which of the following circumstances least likely indicate the possibility of fraud or error?

Selecciona una de las siguientes respuestas posibles:

Unrealistic time deadlines for audit completion imposed by management.
Limitation in audit scope imposed by management.
Conservative application of accounting principles.
Significant difficult-to-audit figures in the accounts

Explicación

Pregunta 3 de 20

1

Which of management’s concerns with respect to implementing internal controls is the auditor primarily concerned?

Selecciona una de las siguientes respuestas posibles:

Efficiency of operations.
Reliability of financial reporting.
Effectiveness of operations.
Compliance with applicable laws and regulations

Explicación

Pregunta 4 de 20

1

Which of the following statements is not correct?

Selecciona una de las siguientes respuestas posibles:

The 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.
Working papers can be destroyed after corporate and statutory retention requirements are met.
The audit program contains the list of specific tasks to be performed and estimated time required.
An audit program would not contain the documentation of system being reviewed.

Explicación

Pregunta 5 de 20

1

Which 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?

Selecciona una de las siguientes respuestas posibles:

Cash flows from operating activities are negative.
Research and development projects are postponed.
Significant related party transactions are pervasive.
Stock dividends replace annual cash dividends.

Explicación

Pregunta 6 de 20

1

Competence as an independent auditor includes all of the following except

Selecciona una de las siguientes respuestas posibles:

Having the technical qualifications to perform the engagement
Possessing the ability to supervise and evaluate the quality of staff work
Warranting the infallibility of the work performed
Consulting others if additional technical information is needed

Explicación

Pregunta 7 de 20

1

Which of the following engagements do not require independence?

Selecciona una de las siguientes respuestas posibles:

Assurance
Compilation
Audit
Review

Explicación

Pregunta 8 de 20

1

If permission from client to discuss its affairs with the proposed auditor is denied by the client, the predecessor auditor should:

Selecciona una de las siguientes respuestas posibles:

Keep silent of the denial.
Disclose the fact that the permission to disclose is denied by the client.
Disclose adequately to proposed auditor all noncompliance made by the client.
Seek legal advice before responding to the proposed auditor

Explicación

Pregunta 9 de 20

1

Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor auditor regarding

Selecciona una de las siguientes respuestas posibles:

Disagreements the predecessor had with the client concerning auditing procedures and accounting principles.
The predecessor’s evaluation of matters of continuing accounting significance.
The degree of cooperation the predecessor received concerning the inquiry of the client’s lawyer.
The predecessor’s assessments of inherent risk and judgments about materiality.

Explicación

Pregunta 10 de 20

1

Tracing shipping documents to prenumbered sales invoices provides evidence that

Selecciona una de las siguientes respuestas posibles:

No duplicate shipments or billings occurred.
Shipments to customers were properly invoiced.
All goods ordered by customers were shipped.
All prenumbered sales invoices were accounted for.

Explicación

Pregunta 11 de 20

1

Which of the following is not a component of an entity’s internal control?

Selecciona una de las siguientes respuestas posibles:

Control risk.
Control activities.
Monitoring.
Control environment.

Explicación

Pregunta 12 de 20

1

The permanent file of an auditor’s working papers generally would not include

Selecciona una de las siguientes respuestas posibles:

Bond indenture agreements.
Lease agreements.
Working trial balance.
Flowchart of internal control

Explicación

Pregunta 13 de 20

1

The audit working paper that reflects the major components of an amount reported in the financial statements is the

Selecciona una de las siguientes respuestas posibles:

Interbank transfer schedule.
Carry forward schedule.
Supporting schedule.
Lead schedule.

Explicación

Pregunta 14 de 20

1

Cutoff 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

Selecciona una de las siguientes respuestas posibles:

Presentation.
Completeness.
Rights.
Existence.

Explicación

Pregunta 15 de 20

1

Which of the following is not an expert upon whose work an auditor may rely?

Selecciona una de las siguientes respuestas posibles:

Actuary.
Appraiser.
Internal auditor.
Engineer.

Explicación

Pregunta 16 de 20

1

A purpose of a management representation letter is to reduce

Selecciona una de las siguientes respuestas posibles:

Audit risk to an aggregate level of misstatement that could be considered material.
An auditor’s responsibility to detect material misstatements only to the extent that the letter is relied on.
The possibility of a misunderstanding concerning management’s responsibility for the financial statements.
The scope of an auditor’s procedures concerning related-party transactions and subsequent events.

Explicación

Pregunta 17 de 20

1

The primary reason an auditor requests letters of inquiry be sent to a client’s attorneys is to provide the auditor with

Selecciona una de las siguientes respuestas posibles:

The probable outcome of asserted claims and pending or threatened litigation.
Corroboration of the information furnished by management about litigation, claims, and assessments.
The attorneys’ opinions of the client’s historical experiences in recent similar litigation.
A description and evaluation of litigation, claims, and assessments that existed at the balance sheet date.

Explicación

Pregunta 18 de 20

1

When an auditor has chosen a random sample and is using nonstatistical attributes sampling, that auditor

Selecciona una de las siguientes respuestas posibles:

Need not consider the risk of assessing control risk too low.
Has committed a nonsampling error.
Will have to use discovery sampling to evaluate the results.
Should compare the deviation rate of the sample to the tolerable deviation rate.

Explicación

Pregunta 19 de 20

1

The accounts payable department receives the purchase order form to accomplish all of the following except to

Selecciona una de las siguientes respuestas posibles:

Compare invoice price to purchase order price
Ensure that the purchase had been properly authorized
Ensure that the goods had been received by the party requesting the goods
Compare quantity ordered to quantity purchased

Explicación

Pregunta 20 de 20

1

When 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

Selecciona una de las siguientes respuestas posibles:

Periods presented plus the one preceding period
Current period only
Current period and those of the other periods presented
Current and immediately preceding period only

	Creado por Jona Rissa Carlos hace más de 9 años

Good luck. God bless you! :)

Auditing Theory Part 1

Pregunta 1 de 20

As an auditor which of the following would be classified as an error?

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 2 de 20

Which of the following circumstances least likely indicate the possibility of fraud or error?

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 3 de 20

Which of management’s concerns with respect to implementing internal controls is the auditor primarily concerned?

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 4 de 20

Which of the following statements is not correct?

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 5 de 20

Which 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?

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 6 de 20

Competence as an independent auditor includes all of the following except

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 7 de 20

Which of the following engagements do not require independence?

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 8 de 20

If permission from client to discuss its affairs with the proposed auditor is denied by the client, the predecessor auditor should:

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 9 de 20

Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor auditor regarding

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 10 de 20

Tracing shipping documents to prenumbered sales invoices provides evidence that

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 11 de 20

Which of the following is not a component of an entity’s internal control?

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 12 de 20

The permanent file of an auditor’s working papers generally would not include

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 13 de 20

The audit working paper that reflects the major components of an amount reported in the financial statements is the

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 14 de 20

Cutoff 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

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 15 de 20

Which of the following is not an expert upon whose work an auditor may rely?

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 16 de 20

A purpose of a management representation letter is to reduce

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 17 de 20

The primary reason an auditor requests letters of inquiry be sent to a client’s attorneys is to provide the auditor with

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 18 de 20

When an auditor has chosen a random sample and is using nonstatistical attributes sampling, that auditor

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 19 de 20

The accounts payable department receives the purchase order form to accomplish all of the following except to

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 20 de 20

When 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