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Audit 441 Chapter 4

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Stephany Fox
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Chapter 4 Audit Quiz

Chapter 4 Audit Quiz

Pregunta 1 de 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.

Arrastra y suelta para completar el texto.

    Engagement
    Audit
    Client

Explicación

Pregunta 2 de 16

1

Selecciona la opción correcta del menú desplegable para completar el texto.

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

Explicación

Pregunta 3 de 16

1

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

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 4 de 16

1

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

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 5 de 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.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 6 de 16

1

Rellena el espacio en blanco para completar el texto.

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.

Explicación

Pregunta 7 de 16

1

Selecciona la opción correcta del menú desplegable para completar el texto.

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

Explicación

Pregunta 8 de 16

1

Selecciona la opción correcta del menú desplegable para completar el texto.

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

Explicación

Pregunta 9 de 16

1

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

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 10 de 16

1

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

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 11 de 16

1

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

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 12 de 16

1

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

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 13 de 16

1

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

Selecciona una de las siguientes respuestas posibles:

  • Decreased amounts of testing

  • Increased amounts of testing

Explicación

Pregunta 14 de 16

1

Selecciona la opción correcta del menú desplegable para completar el texto.

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

Explicación

Pregunta 15 de 16

1

Which of the following is NOT an aspect of SAS 99

Selecciona una de las siguientes respuestas posibles:

  • 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.

Explicación

Pregunta 16 de 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.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

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