STRAYER ACC403 FULL COURSE [ ALL DISCUSSIONS ,ALL QUIZES , ALL HOMEWORKS ,MIDTERM AND FINAL EXXAM
"Auditor's Role and Responsibilities" Please respond to the following:
1. Compare the primary auditor objectives in auditing historical financial statements to auditing internal controls over financial reporting. Identify at least two (2) objectives that are the most significant in reducing the risk of reporting errors or misstatements in financial statements. Provide a rationale for your response.
2. Create a scenario where it would be acceptable for an external auditor to accept an audit engagement without having knowledge of a client's business environment. Ascertain the key legal ramifications and risk mitigation strategies associated with an auditor performing the audit. Support your position.
WEEK 2
"Auditor Accountability"Please respond to the following:
- From the e-Activity, discuss the departures from generally accepted accounting principles (GAAP) that you have researched, and give your opinion as to whether or not the Public Company Accounting Oversight Board (PCAOB) should levy sanctions against the CPA firm for issuing the unqualified report. Identify the sanctions and section of the report the company should have modified to address departures from GAAP. Support your position.
- Compare the code of professional conduct for CPAs to the code of professional conduct for accountants who are non-CPAs. Determine the major ethical issues created by the mergers of public accounting firms with non-CPA firms that perform accounting services. Explain your rationale.
WEEK 4
week 3
week 3
"Audit Risks" Please respond to the following:
- From the e-Activity, analyze whether or not investors who were misled by relying on financial statements could hold the audit firm liable for audit failure either by common or securities laws. Provide a rationale for your response.
- According to an article in the CPA Journal, the accounting profession has long contended that an audit conducted in accordance with generally accepted auditing standards (GAAS) provides reasonable assurance that there are no material misstatements contained within financial statements. Suggest at least two (2) alternative methods that auditors can use to provide a more concrete level of assurance to investors. Provide support for your responses with examples of such methods in use.
WEEK 5
"Testing Methods" Please respond to the following:
- According to the text, to minimize the risk of material misstatement, auditors seek third- party verification of account balances by mailing customers their statements. Discuss the advantages of positive and negative confirmations, and ascertain whether or not email and oral confirmations are acceptable to increase customer response rates. Support your position.
- Discuss the difference between substantive test of transactions and substantive test of balances, and identify at least two (2) situations when an auditor should test account balances. Support your rationale with related examples of such circumstances.
WEEK 1O
"Audit Wrap-Up" Please respond to the following:
- Create a scenario that demonstrates specific ways in which management could manipulate transactions impacting inventory values that the auditing team might not detect. Recommend key strategies that the auditor could implement in anticipation of such manipulation. Justify your response.
- Discuss the difference between a subsequent event and a subsequent discovery of facts, and determine the auditor's responsibility for each event after the audit report is complete. Support your position.
WEEK 11
"Reflections" Please respond to the following:
- Analyze at least three (3) concepts that you found eye opening that you were not aware of before taking this course.
- Discuss your career goals and how taking this course shaped your decision to pursue a career in the auditing profession.
WEEK 7
week 7
"Audit Risk and Fraud" Please respond to the following:
- Create a scenario in which a company conceals financial fraud from the auditing firm through the use of information technology, and suggest at least one (1) way in which an auditing firm can minimize its exposure to this risk.
- According to the text, planning an audit involves establishing the overall audit strategy for the engagement and developing an audit plan in an attempt to reduce audit risk to an acceptable level. Select a balance sheet account or income statement account, and discuss the type of audit procedure that would produce the most reliable evidence for that account balance. Defend your position.
week 6
- Create a scenario where external auditors determined that a company's internal controls were deficient, but such a deficiency might not mean that a material weakness existed. Ascertain the impact on the audit plan if additional deficiencies are discovered on other related internal controls. Support your position.
- From the e-Activity, identify the accounts that the fraud had affected, and analyze the auditor’s responsibility to detect fraud. Suggest key internal controls that would have either prevented or detected the fraudulent behavior or transactions. Justify your response.
week 8
"Internal Controls and Sampling Strategy" Please respond to the following:
- Imagine that you have been hired to audit the sales and collections of a medium to large merchandising company. Suggest at least two (2) ways that management could manipulate earnings, and make specific recommendations for the internal control procedure to prevent or detect the transaction. Justify your response.
- Discuss the advantages and disadvantages of at least two (2) sampling methods. Make a recommendation for the best method to sample accounts receivables. Support your position.
WEEK 2
week 9 homeowrk
Click the link above to submit your assignment.- Chapter16: Problems 16-22(a-c), 16-26(a-e), and 16-33(a-c)
- Chapter 17: Problems 17-28(a-c), 17-31( a-e), and 17-33(a-c)
WEEK 7
Click the link above to submit your assignment.
- Chapter 12: Problems 12-18(a-d), 12-20(a-d), and 12-24(a-b)
- Chapter 13: Problems 13-23(a-d), 13-24(a-b), and 13-27(a-c)
Acc403 final part 1
• Question 1
6 out of 6 points
Auditors frequently refer to the terms audit assurance, overall assurance, and level of assurance to refer to ________.
• Question 2
6 out of 6 points
If an auditor believes the chance of financial failure is high and there is a corresponding increase in business risk for the auditor, acceptable audit risk would likely:
• Question 3
6 out of 6 points
If it is probable that the judgment of a reasonable person will be changed or influenced by the omission or misstatement of information, then that information is, by definition of FASB Statement No. 2:
• Question 4
6 out of 6 points
When auditors allocate the preliminary judgment about materiality to account balances, the materiality allocated to any given account balance is referred to as:
• Question 5
6 out of 6 points
When the auditor is attempting to determine the extent to which external users rely on a client's financial statements, they may consider several factors except
for:
• Question 6
6 out of 6 points
Internal controls can never be regarded as completely effective. Even if company personnel could design an ideal system, its effectiveness depends on the:
• Question 7
6 out of 6 points
In performing the audit of internal control over financial reporting the auditor emphasizes internal control over class of transactions because:
• Question 8
6 out of 6 points
When considering internal controls, an important point to consider is that:
• Question 9
6 out of 6 points
Narratives, flowcharts, and internal control questionnaires are three common methods of:
• Question 10
6 out of 6 points
The employee in charge of authorizing credit to the company's customers does not fully understand the concept of credit risk. This lack of knowledge would constitute:
• Question 11
6 out of 6 points
Analytical procedures can be very effective in detecting inventory fraud. Which of the following analytical procedures would not be useful in detecting fraud?
• Question 12
6 out of 6 points
Financial statement manipulation risk is arguably present for all companies' financial statements. However, the risk is elevated for companies that:
• Question 13
6 out of 6 points
Which party has the primary responsibility to oversee an organization's financial reporting and internal control process?
• Question 14
6 out of 6 points
Who is most likely to perpetrate fraudulent financial reporting?
• Question 15
6 out of 6 points
Which of the following would the auditor be most concerned about regarding a heightened risk of intentional misstatement?
• Question 16
6 out of 6 points
An example of a physical control is:
• Question 17
6 out of 6 points
The audit approach in which the auditor runs his or her own program on a controlled basis to verify the client's data recorded in a machine language is:
• Question 18
6 out of 6 points
Which of the following describes the process of implementing a new system in one part of the organization, while other locations continue to use the current system?
• Question 19
6 out of 6 points
A ________ total represents the summary total of codes from all records in a batch that do not represent a meaningful total.
• Question 20
6 out of 6 points
The continued integration of IT in accounting systems can impact a company by:
• Question 21
6 out of 6 points
Which of the following audit tests is usually the least costly to perform?
• Question 22
6 out of 6 points
The purpose of tests of controls is to provide reasonable assurance that the:
• Question 23
6 out of 6 points
Many auditors perform extensive analytical procedures on audits because:
• Question 24
6 out of 6 points
A system walkthrough is primarily used to help the auditor:
• Question 25
6 out of 6 points
Analytical procedures:
Part 2
Instructions This final exam consists of 25 multiple choice questions and covers the material in Chapters 14 through 17, 21, and 24. There are five questions from each chapter.
• Question 1
6 out of 6 points
Before goods are shipped on account, a properly authorized person must:
• Question 2
6 out of 6 points
What critical event must take place before goods can be shipped in order to assure payment can be reasonably expected?
• Question 3
6 out of 6 points
The document that requires adjustments to the customers subsidiary ledger account is the:
• Question 4
6 out of 6 points
A document prepared to initiate shipment of the goods sold by an independent shipper is the:
• Question 5
0 out of 6 points
What event initiates a transaction in the sales and collection cycle?
• Question 6
6 out of 6 points
Auditors often use the ________ to determine the estimated population exception rate.
• Question 7
6 out of 6 points
When the auditor decides to select less than 100 percent of the population for testing, the auditor is said to use:
• Question 8
6 out of 6 points
Rodgers CPA believes that the rate of client billing errors is 4% and has established a tolerable deviation rate of 6%. In auditing client invoices Rodgers should use:
• Question 9
6 out of 6 points
Which of the following would have the least impact in determining sample size?
• Question 10
6 out of 6 points
Which of the following occurrences would be least likely to warrant further audit attention for the auditor?
• Question 11
6 out of 6 points
The most effective audit evidence gathered for accounts receivable is the:
• Question 12
6 out of 6 points
Which of the following most likely would be detected by a review of a client's sales cutoff?
• Question 13
6 out of 6 points
Analytical procedures:
• Question 14
6 out of 6 points
When do most companies record sales returns and allowances?
• Question 15
6 out of 6 points
Tests of which balance-related audit objective are normally performed first in an audit of the sales and collection?
• Question 16
6 out of 6 points
The risk the auditor is willing to take of accepting a balance as correct when the true misstatement in the balance under audit is greater than the tolerable misstatement is:
• Question 17
6 out of 6 points
The client's trial balance has a balance of $410,000 for merchandise inventory. As the auditor you are willing to accept a balance that is within $20,000 of either side of the recorded balance. You compute a 95% confidence interval of $395,000 to $425,000. You could therefore:
• Question 18
6 out of 6 points
One of the steps involved in planning the sample for the tests of details of balances is to:
• Question 19
6 out of 6 points
When the sample selection is done using probability proportional to size sample selection (PPS):
\
• Question 20
6 out of 6 points
When defining the population and the sampling unit for tests of details of balances:
.
• Question 21
6 out of 6 points
From which of the following evidence-gathering audit procedures would an auditor obtain most assurance concerning the existence of inventories?
• Question 22
6 out of 6 points
Comparing the physical counts with the perpetual inventory master files satisfies the balance-related audit objective of:
• Question 23
6 out of 6 points
Auditor tests of the physical controls over raw materials, work in process, and finished goods are generally limited to:
• Question 24
6 out of 6 points
Boxes or other containers holding inventory should also be opened during test counts to determine the ________ of the inventory.
• Question 25
6 out of 6 points
The audit tests to verify that the client is using an inventory method which is generally accepted and to verify that physical counts were correctly summarized are performed during the audit of the:
• Question 26
6 out of 6 points
The auditor's primary concern relative to presentation and disclosure-related objectives is:
• Question 27
6 out of 6 points
Which of the following subsequent events is most likely to result in an adjustment to a company's financial statements?
• Question 28
6 out of 6 points
When communicating with the audit committee and management:
• Question 29
6 out of 6 points
At the completion of the audit, management is asked to make a written statement that it is not aware of any undisclosed contingent liabilities. This statement would appear in the:
• Question 30
6 out of 6 points
While there is no professional requirement to do so on audit engagements, CPAs frequently issue a formal "management" letter to clients. The primary purpose of this letter is to provide:
midterm
The most common way for users to obtain reliable information is to:
• Question 2
5 out of 5 points
Which of the following is not a SysTrust Services principle as defined by the AICPA?
• Question 3
5 out of 5 points
One objective of an operational audit is to:
• Question 4
5 out of 5 points
An accountant:
• Question 5
0 out of 5 points
Any service that requires a CPA firm to issue a report about the reliability of an assertion that is made by another party is a(n):
• Question 6
5 out of 5 points
The three requirements for becoming a CPA include all but which of the following?
• Question 7
5 out of 5 points
Which of the following is an element of the CPA's quality control system that should be considered in establishing its quality control policies and procedures?
• Question 8
5 out of 5 points
Which of the following statements best describes the primary purpose of Statements on Auditing Standards?
• Question 9
5 out of 5 points
Which of the following is not one of the responsibilities of an auditor under the principles underlying an audit?
• Question 10
5 out of 5 points
Within the context of quality control, the primary purpose of continuing professional education and training activities is to enable a CPA firm to provide its personnel with:
• Question 11
5 out of 5 points
Statements on Standards for Accounting and Review Services are issued by the:
• Question 12
5 out of 5 points
The purpose of establishing quality control policies and procedures to accept or continue a client relationship is to:
• Question 13
5 out of 5 points
Whenever the client imposes restrictions on the scope of the audit, the auditor should be concerned that management may be trying to prevent discovery of misstatements. In such cases, the auditor will likely issue a:
.
• Question 14
5 out of 5 points
If the phrase "except for" is present in the opinion paragraph of the audit report, the auditor has issued a(n):
• Question 15
5 out of 5 points
Auditing standards for public companies are established by the:
• Question 16
5 out of 5 points
A CPA may wish to emphasize specific matters regarding the financial statements even though an unqualified opinion will be issued. Normally, such explanatory information is:
.
• Question 17
5 out of 5 points
When there is uncertainty about a company's ability to continue as a going concern, the auditor's concern is the possibility that the client may not be able to continue its operations or meet its obligations for a "reasonable period of time." For this purpose, a reasonable period of time is considered not to exceed:
• Question 18
5 out of 5 points
If most or all users' decisions that are based on the financial statements are likely to be significantly affected, the materiality level is:
• Question 19
0 out of 5 points
Of the four parts of the AICPA's Code of Professional Conduct, which part is enforceable?
• Question 20
5 out of 5 points
A CPA firm may charge a contingent fee for:
• Question 21
5 out of 5 points
________ means that a person acts according to conscience, regardless of the situation.
• Question 22
5 out of 5 points
Freedom from ________ means the absence of relationships that might interfere with objectivity or integrity.
• Question 23
5 out of 5 points
"Independence" in auditing means:
• Question 24
5 out of 5 points
Which of the following is required for a firm to designate itself "Member of the American Institute of Certified Public Accountants" on its letterhead?
• Question 25
5 out of 5 points
The AICPA's Code of Professional Conduct states that a CPA should maintain integrity and objectivity. The term "objectivity" in the Code refers to a CPA's ability to:
• 5 out of 5 points
The standard of due care to which the auditor is expected to adhere to in the performance of the audit is referred to as the:
• Question 2
5 out of 5 points
A broad interpretation of the rights of third-party beneficiaries holds that users that the auditor should have been able to foresee as being likely users of financial statements have the same rights as those with privity of contract. This is known as the concept of:
• Question 3
5 out of 5 points
If an auditor fails to fulfill a certain requirement in the contract, they may be guilty of:
• Question 4
5 out of 5 points
The preferred defense in third party suits is:
• Question 5
5 out of 5 points
Which of the following auditor's defenses usually means nonreliance on the financial statements by the user?
• Question 6
5 out of 5 points
Laws that have been passed by the U.S. Congress and other governmental units are:
• Question 7
5 out of 5 points
Which of the following would most likely be deemed a direct-effect illegal act?
• Question 8
5 out of 5 points
Management assertions are:
• Question 9
5 out of 5 points
In certifying their annual financial statements, the CEO and CFO of a public company certify that the financial statements comply with the requirements of:
• Question 10
5 out of 5 points
In testing for cutoff, the objective is to determine:
• Question 11
5 out of 5 points
The objective of an audit of the financial statements is an expression of an opinion on:
• Question 12
5 out of 5 points
"The auditor should not assume that management is dishonest, but the possibility of dishonesty must be considered." This is an example of:
• Question 13
5 out of 5 points
An example of a document the auditor receives from the client, but which was prepared by someone outside the client's organization, is a:
• Question 14
5 out of 5 points
Audit evidence has two primary qualities for the auditor; relevance and reliability. Given the choices below, which provides the auditor with the most reliable audit evidence?
• Question 15
5 out of 5 points
When practical and reasonable, U.S. auditing standards require the confirmation of:
• Question 16
5 out of 5 points
The auditor must gather sufficient and appropriate evidence during the course of the audit. Sufficient evidence must:
• Question 17
5 out of 5 points
Which of the following statements regarding the relevance of evidence is correct?
.
• Question 18
5 out of 5 points
Which of the following generally provides the most reliable evidence?
• Question 19
5 out of 5 points
When the auditor develops supporting evidence for amounts posted to account balances with documentary evidence, that process is called:
• Question 20
5 out of 5 points
The preliminary audit strategy:
• Question 21
5 out of 5 points
The two major factors affecting acceptable audit risk are:
• Question 22
5 out of 5 points
Business risk:
• Question 23
5 out of 5 points
Written communication that the auditor will provide reasonable assurance for the detection of fraud is found in:
• Question 24
5 out of 5 points
Which of the following normally signs the engagement letter for an audit of a private company?
• Question 25
5 out of 5 points
If an auditor is requested to perform nonaudit services for a public company audit client, who is responsible for agreeing to those services with the audit firm?
QUIZES
quiz 1
Question 1
2 out of 2 points
Correct
In "auditing" financial accounting data, the primary concern is with:
Question 2
2 out of 2 points
Correct
The Sarbanes-Oxley Act applies to which of the following companies?
Question 3
2 out of 2 points
Correct
Which of the following is not a SysTrust Services principle as defined by the AICPA?
Question 4
2 out of 2 points
Correct
Which of the following services provides the lowest level of assurance on a financial statement?
Question 5
2 out of 2 points
Correct
An accountant:
Question 6
2 out of 2 points
Correct
Recording, classifying, and summarizing economic events in a logical manner for the purpose of providing financial information for decision making is commonly called:
Question 7
0 out of 2 points
Incorrect
Any service that requires a CPA firm to issue a report about the reliability of an assertion that is made by another party is a(n):
Question 8
2 out of 2 points
Correct
The use of the Certified Public Accountant title is regulated by:
.
Question 9
2 out of 2 points
Correct
The most common way for users to obtain reliable information is to:
Question 10
2 out of 2 points
Correct
An examination of part of an organization's procedures and methods for the purpose of evaluating efficiency and effectiveness is what type of audit?
Question 11
2 out of 2 points
Correct
One objective of an operational audit is to:
Question 12
2 out of 2 points
Correct
Which of the following is considered audit evidence?
Question 13
2 out of 2 points
Correct
An audit to determine whether an entity is following specific procedures or rules set down by some higher authority is classified as a(n):
Question 14
2 out of 2 points
Correct
A correct relationship among the auditor, the client, and the external users is:
Question 15
0 out of 2 points
Incorrect
Three common types of attestation services are:
Question 16
2 out of 2 points
Correct
The methods used by a CPA firm to ensure that the firm meets is professional responsibilities to clients and others is:
Question 17
2 out of 2 points
Correct
Hansen Corporation's stock is listed on a national stock exchange and registered with the Securities and Exchange Commission. Hansen's management hires a CPA to perform an independent audit of Hansen's financial statements. The primary objective of this audit is to provide assurance to the:
Question 18
2 out of 2 points
Correct
Members of the Public Company Accounting Oversight Board are appointed and overseen by:
Question 19
2 out of 2 points
Correct
The International Standards on Auditing (ISAs):
Question 20
2 out of 2 points
Correct
To obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, the auditor must fulfill several performance responsibilities, including:
Question 21
2 out of 2 points
Correct
The legal right to perform audits is granted to a CPA firm by regulation of:
Question 22
2 out of 2 points
Correct
The purpose of establishing quality control policies and procedures to accept or continue a client relationship is to:
Question 23
2 out of 2 points
Correct
The form that must be completed and filed with the Securities and Exchange Commission whenever a company experiences a significant event that is of interest to public investors is the:
Question 24
2 out of 2 points
Correct
Statements on Standards for Accounting and Review Services are issued by the:
Question 25
2 out of 2 points
Correct
For privately held companies who is responsible for establishing auditing standards?
Question 26
2 out of 2 points
Correct
Standards issued by the Public Company Accounting Oversight Board must be followed by CPAs who audit:
Question 27
2 out of 2 points
Correct
The organization that is responsible for providing oversight for auditors of public companies is called the ________.
Question 28
2 out of 2 points
Correct
The "Principles Underlying an Audit in Accordance with Generally Accepted Auditing Principles" provides a framework to help auditors:
Question 29
2 out of 2 points
Correct
Historically auditing standards have been organized into three categories, including:
Question 30
2 out of 2 points
Correct
When assessing the risk of material misstatements in the financial statements,
quiz 2
Correct
Which of the following is least likely to cause uncertainty about the ability of an entity to continue as a going concern?
Question 2
2 out of 2 points
Correct
If most or all users' decisions that are based on the financial statements are likely to be significantly affected, the materiality level is:
Question 3
2 out of 2 points
Correct
The standard unqualified audit report for a non-public entity must:
Question 4
2 out of 2 points
Correct
The audit report date on a standard unqualified report indicates:
Question 5
2 out of 2 points
Correct
The standard unqualified audit report for public entities includes the following three paragraphs:
Answer
Question 6
2 out of 2 points
Correct
The auditor's responsibility section of the standard unqualified audit report states that the audit is designed to:
Question 7
2 out of 2 points
Correct
Auditing standards for public companies are established by the:
Question 8
0 out of 2 points
Incorrect
The auditor's responsibility section of the standard audit report states that the auditor is:
Question 9
2 out of 2 points
Correct
The term "explanatory paragraph" was replaced in the AICPA auditing standards with:
Question 10
2 out of 2 points
Correct
If the phrase "except for" is present in the opinion paragraph of the audit report, the auditor has issued a(n):
Question 11
2 out of 2 points
Correct
The first step to be followed when deciding the appropriate audit report in a given set of circumstances is to:
Question 12
2 out of 2 points
Correct
Items that materially affect the comparability of financial statements generally require disclosure in the footnotes. If the client refuses to properly disclose the item, the auditor will most likely issue:
Question 13
2 out of 2 points
Correct
When the auditor determines that the financial statements are fairly stated, but there is a nonindependent relationship between the auditor and the client, the auditor should issue:
Question 14
2 out of 2 points
Correct
A misstatement in the financial statements can be considered material if knowledge of the misstatement will affect a decision of:
Question 15
2 out of 2 points
Correct
Whenever the client imposes restrictions on the scope of the audit, the auditor should be concerned that management may be trying to prevent discovery of misstatements. In such cases, the auditor will likely issue a:
Question 16
2 out of 2 points
Correct
The Sarbanes-Oxley Act ________ a CPA firm from doing both bookkeeping and auditing services for the same public company client.
Question 17
2 out of 2 points
Correct
When a member observes the profession's technical and ethical standards and strives to continually improve her competence and quality of services, she is exercising:
Question 18
2 out of 2 points
Correct
The CPA must not subordinate his or her professional judgment to that of others in any:
Question 19
2 out of 2 points
Correct
Interpretations of the rules regarding independence allow an auditor to serve as:
Question 20
2 out of 2 points
Correct
Rule 301 of the AICPA's Code of Professional Conduct requires CPAs to maintain the confidentiality of client information. This rule would be violated if a CPA disclosed information without a client's consent as a result of a:
Question 21
2 out of 2 points
Correct
The financial interests of a CPA's family members can affect the CPA's independence. Which of the following parties would not be included as a "direct financial interest" of the CPA?
Question 22
2 out of 2 points
Correct
Ethics are:
Question 23
2 out of 2 points
Correct
Which of the following services are allowed by the SEC whenever a CPA also audits the company?
Question 24
2 out of 2 points
Correct
A CPA firm:
Question 25
2 out of 2 points
Correct
The Sarbanes-Oxley Act requires a cooling off period of ________ before a member of an audit team can work for a client in a key management position?
Question 26
2 out of 2 points
Correct
Of the four parts of the AICPA's Code of Professional Conduct, which part is enforceable?
Question 27
2 out of 2 points
Correct
Freedom from ________ means the absence of relationships that might interfere with objectivity or integrity.
.
Question 28
2 out of 2 points
Correct
Which of the following is required for a firm to designate itself "Member of the American Institute of Certified Public Accountants" on its letterhead?
Question 29
2 out of 2 points
Correct
The AICPA's Code of Professional Conduct requires independence for all:
Question 30
2 out of 2 points
Correct
The members of a client's "audit committee" should be:
quiz 4
2 out of 2 points
Correct
When allocating performance materiality:
Question 2
2 out of 2 points
Correct
Inherent risk is often high for an account such as:
Question 3
2 out of 2 points
Correct
Inherent risk is ________ related to detection risk and ________ related to the amount of audit evidence. Question 4
2 out of 2 points
Correct
When taken together, the concepts of risk and materiality in auditing:
Question 5
2 out of 2 points
Correct
If it is probable that the judgment of a reasonable person will be changed or influenced by the omission or misstatement of information, then that information is, by definition of FASB Statement No. 2:
Question 6
2 out of 2 points
Correct
________ misstatements are those where the auditor can determine the amount of the misstatement in the account.
Question 7
2 out of 2 points
Correct
If an auditor believes the chance of financial failure is high and there is a corresponding increase in business risk for the auditor, acceptable audit risk would likely:
Question 8
2 out of 2 points
Correct
When management has an adequate level of integrity for the auditor to accept the engagement but cannot be regarded as completely honest in all dealings, auditors normally:
Question 9
2 out of 2 points
Correct
The measurement of the auditor's assessment of the likelihood that there are material misstatements due to error or fraud in a segment before considering the effectiveness of internal controls is defined as:
Question 10
2 out of 2 points
Correct
If an auditor establishes a relatively high level for materiality, then the auditor will:
Question 11
2 out of 2 points
Correct
An auditor who audits a business cycle that has low inherent risk should:
Question 12
2 out of 2 points
Correct
When the auditor is attempting to determine the extent to which external users rely on a client's financial statements, they may consider several factors except for:
Question 13
2 out of 2 points
Correct
The risk that audit evidence for a segment will fail to detect misstatements exceeding performance materiality levels is: Question 14
2 out of 2 points
Correct
As the risk of material misstatement increases, detection risk should:
Question 15
2 out of 2 points
Correct
To what extent do auditors typically rely on internal controls of their public company clients?
2 out of 2 points
Correct
If an auditor fails to fulfill a certain requirement in the contract, they may be guilty of:
Question 2
2 out of 2 points
Correct
Recklessness in the case of an audit is present if the auditor knew an adequate audit was not done but still issued an opinion, even though there was no intent to deceive financial statement users. This description is the legal term for:
Question 3
2 out of 2 points
Correct
Which of the following most accurately describes constructive fraud?
Question 4
2 out of 2 points
Correct
The standard of due care to which the auditor is expected to adhere to in the performance of the audit is referred to as the:
Question 5
2 out of 2 points
Correct
A(n) ________ failure occurs when an auditor issues an erroneous opinion because it failed to comply with requirements of auditing standards.
Question 6
2 out of 2 points
Correct
"Absence of reasonable care that can be expected of a person in a set of circumstances" defines:
Question 7
2 out of 2 points
Correct
In connection with the audit of financial statements, an independent auditor could be responsible for failure to detect a material fraud if:
Question 8
2 out of 2 points
Correct
Which of the following most accurately describes fraud?
Question 9
2 out of 2 points
Correct
The principal issue in cases involving alleged negligence is usually:
Question 10
2 out of 2 points
Correct
Under the laws of agency, partners of a CPA firm may be liable for the work of others on whom they rely. This would not include:
Question 11
2 out of 2 points
Correct
The Foreign Corrupt Practices Act (FCPA) of 1977:
Question 12
2 out of 2 points
Correct
In the auditing environment, failure to meet auditing standards is often:
Question 13
2 out of 2 points
Correct
In the performance of an audit, a CPA:
Question 14
2 out of 2 points
Correct
A common way for a CPA firm to demonstrate a lack of duty to perform is by use of a(n):
Question 15
0 out of 2 points
Incorrect
Which of the following auditor's defenses usually means nonreliance on the financial statements by the user?
Question 16
2 out of 2 points
Correct
The objective of an audit of the financial statements is an expression of an opinion on:
Question 17
2 out of 2 points
Correct
When dealing with laws and regulations that do not have a direct effect on the financial statements, the auditor:
Question 18
2 out of 2 points
Correct
Which of the following assertions is described as "this assertion addresses whether all transactions that should be included in the financial statements are in fact included"?
Question 19
2 out of 2 points
Correct
An audit must be performed with an attitude of professional skepticism. Professional skepticism consists of two primary components: a questioning mind and:
Answer
Question 20
2 out of 2 points
Correct
A questioning mindset:
Question 21
2 out of 2 points
Correct
The cycle approach to auditing:
Question 22
2 out of 2 points
Correct
If a client has violated federal tax laws:
Question 23
2 out of 2 points
Correct
Which of the following would most likely be deemed a direct-effect illegal act?
Question 24
2 out of 2 points
Correct
In certifying their annual financial statements, the CEO and CFO of a public company certify that the financial statements comply with the requirements of:
Question 25
2 out of 2 points
Correct
In testing for cutoff, the objective is to determine:
Question 26
2 out of 2 points
Correct
When an auditor knows that an illegal act has occurred, she must:
Question 27
2 out of 2 points
Correct
Which of the following statements is the most correct regarding errors and fraud?
Question 28
2 out of 2 points
Correct
The most important general ledger account included in and affecting several cycles is the:
Answer
Question 29
2 out of 2 points
Correct
The auditor's best defense when material misstatements are not uncovered is to have conducted the audit:
Question 30
2 out of 2 points
Correct
Management assertions are:
quiz 5
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Rating:
/5
Solution: STRAYER ACC403 FULL COURSE [ ALL DISCUSSIONS ,ALL QUIZES , ALL HOMEWORKS ,MIDTERM AND FINAL EXXAM