Question 1

What are the three key features that must be included in the management representation letter?

Accepted Answer

i.That management has fulfilled its resp

Question 2

Which of the following representations would be made by the client in writing?

Accepted Answer

A) Losses from sales commitments. 
B) Unasserted claims and assessments. 
C) That all transactions have been recorded. 
D) Noncompliance with contractual agreements. 
A) Losses from sales commitments. 
B) Unasserted claims and assessments. 
C) That all transactions have been recorded. 
D) Noncompliance with contractual agreements.

Question 3

Which of the following items would appear in a management letter of representation?

Accepted Answer

A) That a physical inventory was taken, and properly valued. 
B) That the control systems are operating effectively. 
C) That management has adequate insurance to ensure its ongoing operations. 
D) That all financial records and related data were made available to the auditors. 
A) That a physical inventory was taken, and properly valued. 
B) That the control systems are operating effectively. 
C) That management has adequate insurance to ensure its ongoing operations. 
D) That all financial records and related data were made available to the auditors.

Question 4

Analytical procedures are used during the overall evaluation of the financial statements.

Accepted Answer

A) True 
 B)False

Question 5

According to the CICA handbook, auditors should watch for unusual transactions in the course of their audit.List four examples of these transactions.

Accepted Answer

i.Transactions that are made with unusua

Question 6

Analytical procedures used in the overall review stage of an audit generally include

Accepted Answer

A) Considering unusual or unexpected account balances that were not previously identified. 
B) Performing tests of transactions to corroborate management's financial statement assertions. 
C) Gathering evidence concerning account balances that have not changed from the prior year. 
D) Re-testing control procedures that appeared to be ineffective during the assessment of control risk. 
A) Considering unusual or unexpected account balances that were not previously identified. 
B) Performing tests of transactions to corroborate management's financial statement assertions. 
C) Gathering evidence concerning account balances that have not changed from the prior year. 
D) Re-testing control procedures that appeared to be ineffective during the assessment of control risk.

Question 7

The auditor writes a letter to the audit committee concerning material weaknesses in internal controls.

Accepted Answer

A) True 
 B)False

Question 8

The audit of the year-end franchise revenue balances is normally conducted in conjunction with which related account group?

Accepted Answer

A) Fixed assets, receivables. 
B) Receivables, intangibles. 
C) Receivables, investments. 
D) Revenues, receivables. 
A) Fixed assets, receivables. 
B) Receivables, intangibles. 
C) Receivables, investments. 
D) Revenues, receivables.

Question 9

An auditor analyzes repairs and maintenance accounts primarily to obtain evidence in support of the audit assertion that all

Accepted Answer

A) Expenditures for repairs and maintenance have been recorded in the proper period. 
B) Expenditures for property and equipment have been recorded in the proper period. 
C) Expenditures for repairs and maintenance have not been charged to capital accounts. 
D) Expenditures for property and equipment have not been charged to expense. 
A) Expenditures for repairs and maintenance have been recorded in the proper period. 
B) Expenditures for property and equipment have been recorded in the proper period. 
C) Expenditures for repairs and maintenance have not been charged to capital accounts. 
D) Expenditures for property and equipment have not been charged to expense.

Question 10

Auditors must complete phases of an audit after the balance sheet date.This subsequent period extends from the balance sheet date to the date of the

Accepted Answer

A) Audit report. 
B) Final review of the audit working papers. 
C) Public issuance of the financial statements. 
D) Delivery of the audit report to the client. 
A) Audit report. 
B) Final review of the audit working papers. 
C) Public issuance of the financial statements. 
D) Delivery of the audit report to the client.

Question 11

The client signs the enquiry letter about claims and possible claims that is sent to the company's law firm for confirmation.

Accepted Answer

A) True 
 B)False

Question 12

The primary reason an auditor asks that enquiry letters be sent to a client's lawyers is to provide the auditor with

Accepted Answer

A) The probable outcome of asserted claims and pending or threatened litigation. 
B) Corroboration of the information furnished by management about litigation, claims, and assessments. 
C) The lawyer's opinion of the client's historical experiences in recent similar litigation. 
D) A description and evaluation of litigation, claims, and assessments that existed at the balance sheet date. 
A) The probable outcome of asserted claims and pending or threatened litigation. 
B) Corroboration of the information furnished by management about litigation, claims, and assessments. 
C) The lawyer's opinion of the client's historical experiences in recent similar litigation. 
D) A description and evaluation of litigation, claims, and assessments that existed at the balance sheet date.

Question 13

Management letters are a means of:

Accepted Answer

A) Reporting recommendations to the client. 
B) Making the client aware of the firm's consulting services. 
C) Communicating matters related to control risk. 
D) Identifying frauds and material misstatements. 
A) Reporting recommendations to the client. 
B) Making the client aware of the firm's consulting services. 
C) Communicating matters related to control risk. 
D) Identifying frauds and material misstatements.

Question 14

The primary source of information that the auditor can use in corroborating information about litigation, claims, and assessments is the

Accepted Answer

A) Client's lawyer. 
B) Court records. 
C) Client's management. 
D) Independent auditor. 
A) Client's lawyer. 
B) Court records. 
C) Client's management. 
D) Independent auditor.

Question 15

An analysis of the comparative balances of minor expense accounts is often sufficient to decide whether the amounts are fairly presented.

Accepted Answer

A) True 
 B)False

Question 16

Having identified related party transactions, the auditor should:

Accepted Answer

A) Confirm the terms and amounts of the transactions with the related parties. 
B) Inform the audit committee in writing. 
C) Consult with a fraud specialist to consider extended procedures. 
D) Consider including an emphasis of matter paragraph in the audit opinion. 
A) Confirm the terms and amounts of the transactions with the related parties. 
B) Inform the audit committee in writing. 
C) Consult with a fraud specialist to consider extended procedures. 
D) Consider including an emphasis of matter paragraph in the audit opinion.

Question 17

Which of the following procedures should an auditor generally perform regarding subsequent events?

Accepted Answer

A) Compare the latest available interim financial statements with the financial statements being reported on. 
B) Send second requests to the client's customers who failed to respond to initial accounts receivable confirmation requests. 
C) Communicate material weaknesses in the internal control system to the client's audit committee. 
D) Review the cut-off bank statements for several months after the year end. 
A) Compare the latest available interim financial statements with the financial statements being reported on. 
B) Send second requests to the client's customers who failed to respond to initial accounts receivable confirmation requests. 
C) Communicate material weaknesses in the internal control system to the client's audit committee. 
D) Review the cut-off bank statements for several months after the year end.

Question 18

The primary objective of performing analytical procedures in the final review stage of an audit is to

Accepted Answer

A) Obtain evidence from details tested to corroborate management assertions. 
B) Obtain evidence on the validity of the assessment of control risk. 
C) Assist the auditor in evaluating the overall financial statement presentation. 
D) Identify areas that represent specific risks relevant to the audit. 
A) Obtain evidence from details tested to corroborate management assertions. 
B) Obtain evidence on the validity of the assessment of control risk. 
C) Assist the auditor in evaluating the overall financial statement presentation. 
D) Identify areas that represent specific risks relevant to the audit.

Question 19

Why do auditors ask about related party transactions and where do they typically do this?

Accepted Answer

Auditors ask about involvement with rela

Question 20

The refusal by a client's lawyer to provide a representation about the legality of a act committed by the client is generally

Accepted Answer

A) Sufficient reason to issue an adverse opinion. 
B) Considered to be a scope limitation. 
C) Insufficient reason to modify the auditor's report due to the attorney's obligation of confidentiality. 
D) Proper grounds to withdraw from the engagement. 
A) Sufficient reason to issue an adverse opinion. 
B) Considered to be a scope limitation. 
C) Insufficient reason to modify the auditor's report due to the attorney's obligation of confidentiality. 
D) Proper grounds to withdraw from the engagement.

What are the three key features that must be included in the management representation letter?

Which of the following representations would be made by the client in writing?

Which of the following items would appear in a management letter of representation?

Analytical procedures are used during the overall evaluation of the financial statements.

According to the CICA handbook, auditors should watch for unusual transactions in the course of their audit.List four examples of these transactions.

Analytical procedures used in the overall review stage of an audit generally include

The auditor writes a letter to the audit committee concerning material weaknesses in internal controls.

The audit of the year-end franchise revenue balances is normally conducted in conjunction with which related account group?

An auditor analyzes repairs and maintenance accounts primarily to obtain evidence in support of the audit assertion that all

Auditors must complete phases of an audit after the balance sheet date.This subsequent period extends from the balance sheet date to the date of the

The client signs the enquiry letter about claims and possible claims that is sent to the company's law firm for confirmation.

The primary reason an auditor asks that enquiry letters be sent to a client's lawyers is to provide the auditor with

Management letters are a means of:

The primary source of information that the auditor can use in corroborating information about litigation, claims, and assessments is the

An analysis of the comparative balances of minor expense accounts is often sufficient to decide whether the amounts are fairly presented.

Having identified related party transactions, the auditor should:

Which of the following procedures should an auditor generally perform regarding subsequent events?

The primary objective of performing analytical procedures in the final review stage of an audit is to

Why do auditors ask about related party transactions and where do they typically do this?

The refusal by a client's lawyer to provide a representation about the legality of a act committed by the client is generally

Introduction to Auditing

Audit, Assurance, and Quality Control Standards

Reports on Audited Financial Statements and Audited Internal Controlt

Professional Ethics and Auditor Responsibilities

Legal Liability

Preliminary Audit Planning: Understanding the Auditee

Assessing Risks and Internal Control

Audit Evidence and Assurance

Control Assessment and Testing

Audit Sampling

Revenues, Receivables, and Receipts Process

Purchases, Payables, and Payments Processtrue

Production and Payroll Process

Finance and Investment Process

Other Public Accounting Services and Reports

Fraud Awareness Auditing

Filters

Exam 15: Completing the Audit

What are the three key features that must be included in the management representation letter?

Which of the following representations would be made by the client in writing?

Which of the following items would appear in a management letter of representation?

Analytical procedures are used during the overall evaluation of the financial statements.

According to the CICA handbook, auditors should watch for unusual transactions in the course of their audit.List four examples of these transactions.

Analytical procedures used in the overall review stage of an audit generally include

The auditor writes a letter to the audit committee concerning material weaknesses in internal controls.

The audit of the year-end franchise revenue balances is normally conducted in conjunction with which related account group?

An auditor analyzes repairs and maintenance accounts primarily to obtain evidence in support of the audit assertion that all

Auditors must complete phases of an audit after the balance sheet date.This subsequent period extends from the balance sheet date to the date of the

The client signs the enquiry letter about claims and possible claims that is sent to the company's law firm for confirmation.

The primary reason an auditor asks that enquiry letters be sent to a client's lawyers is to provide the auditor with

Management letters are a means of:

The primary source of information that the auditor can use in corroborating information about litigation, claims, and assessments is the

An analysis of the comparative balances of minor expense accounts is often sufficient to decide whether the amounts are fairly presented.

Having identified related party transactions, the auditor should:

Which of the following procedures should an auditor generally perform regarding subsequent events?

The primary objective of performing analytical procedures in the final review stage of an audit is to

Why do auditors ask about related party transactions and where do they typically do this?

The refusal by a client's lawyer to provide a representation about the legality of a act committed by the client is generally

Introduction to Auditing

Audit, Assurance, and Quality Control Standards

Reports on Audited Financial Statements and Audited Internal Controlt

Professional Ethics and Auditor Responsibilities

Legal Liability

Preliminary Audit Planning: Understanding the Auditee

Assessing Risks and Internal Control

Audit Evidence and Assurance

Control Assessment and Testing

Audit Sampling

Revenues, Receivables, and Receipts Process

Purchases, Payables, and Payments Processtrue

Production and Payroll Process

Finance and Investment Process

Other Public Accounting Services and Reports

Fraud Awareness Auditing

Filters