25170947
Description
Quiz by Kayla Harbaugh, updated more than 1 year ago
|
Created by Kayla Harbaugh
over 4 years ago
|
|
Question 1
Question
Which of these statements is true about the audit opinion formulation process presented in this chapter?
Answer
-
The audit opinion formulation process is different for the financial statement only audit and the integrated audit.
-
The audit opinion formulation process is based on the premise that management has responsibility to prepare the financial statements and maintain internal control over financial reporting.
-
The audit opinion formulation process is comprised of seven phases.
-
All of these are true statements regarding the audit opinion formulation process.
Question 2
Question
Which of the following accounts would not be included in the Acquisition and Payment for Long-Lived Assets Cycle?
Answer
-
Equipment
-
Revenue
-
Depreciation expense
-
Gain on disposal
Question 3
Question
Which of the following information should be included in audit documentation?
Answer
-
Procedures performed.
-
Audit evidence examined.
-
Conclusions reached with respect to relevant financial statement assertions.
-
All of this information should be included.
Question 4
Question
Which of the following statements regarding client acceptance/continuance decisions is false?
Answer
-
Auditors are not required to perform audits for any organization that asks for an audit.
-
An audit firm's client portfolio is impacted by both audit firm decisions and client decisions.
-
Auditors should assess the background and experience of accounting personnel of a potential client.
-
It would not be appropriate for audit firms to perform background checks on management of a potential client.
Question 5
Question
Which of the following procedures is least likely to be performed during Phase V of the audit opinion formulation process?
Answer
-
Performance of an engagement quality review.
-
Performance of preliminary analytical review procedures.
-
Assessment of misstatements detected during the performance of substantive procedures and tests of controls.
-
Determination of the appropriate audit opinion(s) to issue.
Question 6
Question
There is not much overlap; i.e., things in common among the auditing standards set by the PCAOB, AICPA, and IAASB.
Answer
- True
- False
Question 7
Question
A classic inventory fraud involves management understating ending inventory, thereby yielding a reduction in cost of goods sold and an overstatement of profitability.
Answer
- True
- False
Question 8
Question
Risk assessment procedures provide sufficient appropriate audit evidence on which to base an audit opinion.
Answer
- True
- False
Question 9
Question
In conducting a substantive audit, the auditor uses only substantive procedures, and does not rely on tests of internal controls.
Answer
- True
- False
Question 10
Question
Substantive procedures include substantive analytical procedures and tests of details.
Answer
- True
- False
Want to create your own Quizzes for free with GoConqr? Learn more.