Exam 4: Risk Assessment

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The risk that an auditor will conclude,based on substantive procedures,that a material error does not exist in an account balance when,in fact,such an error does exist is referred to as

(Multiple Choice)

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Question 21

Professional judgment must be used when evaluating business risk.

(True/False)

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Question 22

The achieved (actual)level of audit risk

(Multiple Choice)

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Question 23

The auditor can respond to an increased risk of fraud by doing all of the following except:

(Multiple Choice)

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Question 24

On the basis of audit evidence gathered and evaluated,an auditor decides to increase the assessed level of risk of material misstatement from that originally planned.To achieve an overall audit risk level that is substantially the same as the planned audit risk level,the auditor would

(Multiple Choice)

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Question 25

Under Statements on Auditing Standards,which of the following would be classified as an error?

(Multiple Choice)

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Question 26

Which of the following factors most likely would heighten an auditor's concern about the risk of fraudulent financial reporting?

(Multiple Choice)

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Question 27

Which of the following is not an important consideration in an auditor's evaluation of an entity's business risk?

(Multiple Choice)

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Question 28

You are the senior on an audit of Two Be Gone,a large public company.The company recently completed an acquisition of its fifth largest competitor.What risks might this present? How will you,the auditor,respond to these risks (i.e.what actions should you take)?

(Essay)

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Question 29

DATRIX,Inc.,a Fortune 500 company,has been experiencing poor performance.Industry analysts have been issuing negative reports and the company's stock price has been steadily declining.As an auditor,what would concern you about the audit engagement of DATRIX,Inc.

(Essay)

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Question 30

As the acceptable level of detection risk decreases,an auditor may change the

(Multiple Choice)

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Question 31

Your classmate asserts,"Accountants shouldn't need to take business courses besides accounting,because they are only interested in the financial statements of a company." Defend or refute this statement.

(Essay)

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Question 32

Increased fraud risk could result in all of the following except:

(Multiple Choice)

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Question 33

Which of the following is not a misstatement of the financial statements?

(Multiple Choice)

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Question 34

Which of the following characteristics most likely would heighten an auditor's concern about the risk of intentional manipulation of financial statements?

(Multiple Choice)

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Question 35

The acceptable level of detection risk is inversely related to the

(Multiple Choice)

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Question 36

The objectives of the engagement partner's communication with the audit team include

(Multiple Choice)

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Question 37

The primary responsibility for preventing fraud in an organization lies with

(Multiple Choice)

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Question 38

In one sentence each,define misstatements arising from fraudulent financial reporting and misstatements arising from misappropriation of assets.

(Essay)

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Question 39

Which of the following is a factual misstatement?

(Multiple Choice)

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Question 40

Showing 21 - 40 of 54

Exam 4: Risk Assessment

The risk that an auditor will conclude,based on substantive procedures,that a material error does not exist in an account balance when,in fact,such an error does exist is referred to as

Professional judgment must be used when evaluating business risk.

The achieved (actual)level of audit risk

The auditor can respond to an increased risk of fraud by doing all of the following except:

On the basis of audit evidence gathered and evaluated,an auditor decides to increase the assessed level of risk of material misstatement from that originally planned.To achieve an overall audit risk level that is substantially the same as the planned audit risk level,the auditor would

Under Statements on Auditing Standards,which of the following would be classified as an error?

Which of the following factors most likely would heighten an auditor's concern about the risk of fraudulent financial reporting?

Which of the following is not an important consideration in an auditor's evaluation of an entity's business risk?

You are the senior on an audit of Two Be Gone,a large public company.The company recently completed an acquisition of its fifth largest competitor.What risks might this present? How will you,the auditor,respond to these risks (i.e.what actions should you take)?

DATRIX,Inc.,a Fortune 500 company,has been experiencing poor performance.Industry analysts have been issuing negative reports and the company's stock price has been steadily declining.As an auditor,what would concern you about the audit engagement of DATRIX,Inc.

As the acceptable level of detection risk decreases,an auditor may change the

Your classmate asserts,"Accountants shouldn't need to take business courses besides accounting,because they are only interested in the financial statements of a company." Defend or refute this statement.

Increased fraud risk could result in all of the following except:

Which of the following is not a misstatement of the financial statements?

Which of the following characteristics most likely would heighten an auditor's concern about the risk of intentional manipulation of financial statements?

The acceptable level of detection risk is inversely related to the

The objectives of the engagement partner's communication with the audit team include

The primary responsibility for preventing fraud in an organization lies with

In one sentence each,define misstatements arising from fraudulent financial reporting and misstatements arising from misappropriation of assets.

Which of the following is a factual misstatement?

An Introduction to Assurance and Financial Statement Auditing

The Financial Statement Auditing Environment

Audit Planning, Types of Audit Tests, and Materiality

Evidence and Documentation

Internal Control in a Financial Statement Audit

Auditing Internal Control Over Financial Reporting

Audit Sampling: An Overview and Application to Tests of Controls

Audit Sampling: An Application to Substantive Tests of Account Balances

Auditing the Revenue Process

Auditing the Purchasing Process

Auditing the Human Resource Management Process

Auditing the Inventory Management Process

Auditing the Financinginvesting Process: Prepaid Expenses, Intangible Assets, and Property, Plant, and Equipment

Auditing the Financinginvesting Process: Long-Term Liabilities, Stockholders Equity, and Income Statement Accounts

Auditing the Financinginvesting Process: Cash and Investments

Completing the Audit Engagement

Reports on Audited Financial Statements

Professsional Conduct,Independence,and Quality Control

Legal Liability

Assurance,Attestation,amd Internal Auditing Services-professional Judgement Module

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