Question 1

The most common reporting framework in Canada is the ________.

Accepted Answer

A) compliance framework 
B) special purpose framework 
C) prospective framework 
D) fair presentation framework 
A) compliance framework 
B) special purpose framework 
C) prospective framework 
D) fair presentation framework D

Question 2

The objective of internal auditing is service to ________.

Accepted Answer

A) management 
B) a specific department 
C) the organization 
D) the audit committee 
A) management 
B) a specific department 
C) the organization 
D) the audit committee C

Question 3

A financial ________ depends on one or more hypothetical assumptions.

Accepted Answer

A) statement 
B) projection 
C) plan 
D) forecast 
A) statement 
B) projection 
C) plan 
D) forecast B

Question 4

The nature of extended procedures regarding fraud auditing is limited only by an auditor's imagination.

Accepted Answer

A) True 
 B)False

Question 5

In the audit of financial statements,which of the following procedures would the auditor call an "extended procedure?"

Accepted Answer

A) Measure the time lag between the date that cash receipts are recorded in the accounting records and the date that the deposit is credited to the bank account. 
B) Observe the client's physical inventory count and take test counts of stock in the warehouse. 
C) Send positive confirmations on accounts receivable balances. 
D) Interview the staff in the accounting department and document the controls over the recording of sales transactions. 
A) Measure the time lag between the date that cash receipts are recorded in the accounting records and the date that the deposit is credited to the bank account. 
B) Observe the client's physical inventory count and take test counts of stock in the warehouse. 
C) Send positive confirmations on accounts receivable balances. 
D) Interview the staff in the accounting department and document the controls over the recording of sales transactions.

Question 6

Explain briefly the purpose of a value-for-money (VFM)audit.

Accepted Answer

VFM auditing is a form of auditing that

Question 7

Which of the following statements regarding agreed-upon procedures is FALSE?

Accepted Answer

A) They amount to an audit. 
B) They do not meet with generally accepted auditing standards. 
C) They have a limited scope. 
D) They are typically initiated by the client. 
A) They amount to an audit. 
B) They do not meet with generally accepted auditing standards. 
C) They have a limited scope. 
D) They are typically initiated by the client.

Question 8

Briefly distinguish between a compliance audit and a value-for-money audit.

Accepted Answer

i.A value-for-money audit is concerned w

Question 9

Horizontal analysis can be used in fraud detection by ________.

Accepted Answer

A) checking the trend in earnings from year to year of persons suspected of fraud 
B) looking for significant changes in financial statement amounts and ratios across several fiscal periods 
C) looking for odd relations of one account to a base such as sales 
D) looking for the change in net worth of a suspect from the beginning to the end of a period 
A) checking the trend in earnings from year to year of persons suspected of fraud 
B) looking for significant changes in financial statement amounts and ratios across several fiscal periods 
C) looking for odd relations of one account to a base such as sales 
D) looking for the change in net worth of a suspect from the beginning to the end of a period

Question 10

Federal and provincial governments and their agencies and local governments use the CICA Public Sector Standards to guide their audits.

Accepted Answer

A) True 
 B)False

Question 11

An operational audit would NOT include determining ________.

Accepted Answer

A) Whether the entity is acquiring,protecting,and using its resources effectively. 
B) The effectiveness of an organization and its programs,activities,and functions. 
C) The causes of inefficiencies or uneconomical practices. 
D) Whether the entity has complied with laws and regulations. 
A) Whether the entity is acquiring,protecting,and using its resources effectively. 
B) The effectiveness of an organization and its programs,activities,and functions. 
C) The causes of inefficiencies or uneconomical practices. 
D) Whether the entity has complied with laws and regulations.

Question 12

What does "willfully blind" mean within the context of fraud?

Accepted Answer

Accountants need to be careful not to be

Question 13

A good reason for involving fraud auditors in the planning of a regular audit of financial statements is ________.

Accepted Answer

A) when there are many fraud risk factors 
B) when the audit committee authorizes further investigation 
C) it makes the client aware of how seriously the auditor takes its fraud detection responsibility 
D) it improves the documentation standards of the financial statement audit 
A) when there are many fraud risk factors 
B) when the audit committee authorizes further investigation 
C) it makes the client aware of how seriously the auditor takes its fraud detection responsibility 
D) it improves the documentation standards of the financial statement audit

Question 14

When independent CAs in public practice take engagements to audit governmental units or entities that receive financial assistance from governmental units,they must follow ________.

Accepted Answer

A) GAAS only 
B) GAAS and PS 
C) PS only 
D) internal auditing standards 
A) GAAS only 
B) GAAS and PS 
C) PS only 
D) internal auditing standards

Question 15

The most effective long-run prevention of employee fraud is the practice of management caring for their employees.What can managers do to aid in fraud prevention?

Accepted Answer

Show genuine concern for the personal an

Question 16

Fraud examiners refer to people engaged specifically in the work of fraud investigation.

Accepted Answer

A) True 
 B)False

Question 17

A VFM audit will tend to use a multidisciplinary audit team with expertise in different areas such as like economics or engineering.

Accepted Answer

A) True 
 B)False

Question 18

The term significance as used in the assurance standards refers to ________.

Accepted Answer

A) the concept of materiality extended to nonfinancial factors 
B) an amount greater than materiality for audit purposes 
C) an estimate of risk in an assurance engagement 
D) the importance of a criterion for evaluation of information 
A) the concept of materiality extended to nonfinancial factors 
B) an amount greater than materiality for audit purposes 
C) an estimate of risk in an assurance engagement 
D) the importance of a criterion for evaluation of information

Question 19

In 2012,Marg Levy,PA,performed an environmental audit of Scoop Mining.As a result of that engagement,she prepared a report which included several recommendations to improve compliance with environmental protection laws.In 2012,Ms.Levy has been approached to perform another audit of environmental protection procedures,some of which are based on her earlier recommendations.Which of the following statements is TRUE?

Accepted Answer

A) Ms.Levy must decline the audit as it conflicts with her independence. 
B) Ms.Levy must restrict herself to performing specified tests of procedures that were not in her recommendations in order to protect her independence. 
C) Ms.Levy may perform the audit including work on her recommended procedures,as independence is less important in an environmental compliance audit than in a financial statement audit. 
D) Ms.Levy may perform the audit including work on her recommended procedures since she cannot be associated with nonfinancial information,so the concept of independence does not apply. 
A) Ms.Levy must decline the audit as it conflicts with her independence. 
B) Ms.Levy must restrict herself to performing specified tests of procedures that were not in her recommendations in order to protect her independence. 
C) Ms.Levy may perform the audit including work on her recommended procedures,as independence is less important in an environmental compliance audit than in a financial statement audit. 
D) Ms.Levy may perform the audit including work on her recommended procedures since she cannot be associated with nonfinancial information,so the concept of independence does not apply.

Question 20

When financial auditors suspect financial reporting fraud,they should discuss their suspicions with the client to see there is an alternative explanation.

Accepted Answer

A) True 
 B)False

The most common reporting framework in Canada is the ________.

The objective of internal auditing is service to ________.

A financial ________ depends on one or more hypothetical assumptions.

The nature of extended procedures regarding fraud auditing is limited only by an auditor's imagination.

In the audit of financial statements,which of the following procedures would the auditor call an "extended procedure?"

Explain briefly the purpose of a value-for-money (VFM)audit.

Which of the following statements regarding agreed-upon procedures is FALSE?

Briefly distinguish between a compliance audit and a value-for-money audit.

Horizontal analysis can be used in fraud detection by ________.

Federal and provincial governments and their agencies and local governments use the CICA Public Sector Standards to guide their audits.

An operational audit would NOT include determining ________.

What does "willfully blind" mean within the context of fraud?

A good reason for involving fraud auditors in the planning of a regular audit of financial statements is ________.

When independent CAs in public practice take engagements to audit governmental units or entities that receive financial assistance from governmental units,they must follow ________.

The most effective long-run prevention of employee fraud is the practice of management caring for their employees.What can managers do to aid in fraud prevention?

Fraud examiners refer to people engaged specifically in the work of fraud investigation.

A VFM audit will tend to use a multidisciplinary audit team with expertise in different areas such as like economics or engineering.

The term significance as used in the assurance standards refers to ________.

When financial auditors suspect financial reporting fraud,they should discuss their suspicions with the client to see there is an alternative explanation.

Introduction to Auditing

Auditors Professional Roles and Responsibilities

Auditors Ethical and Legal Responsibilities

Reports on Audited Financial Statements

Preliminary Audit Planning: Understanding the Auditees Business

Assessing Risks in an Audit Engagement

Internal Control Over Financial Reporting

Audit Evidence and Assurance

Control Assessment and Testing

Audit Sampling

The Revenues, Receivables, and Receipts Process and Cash Account Balance

The Purchases, Payables, and Payments Process

Payroll and Production Processes

The Finance and Investment Process

hapter 15 Completing the Audit Work

Applying Professional Judgment to Form the Audit Opinion and Issue the Audit Report

Other Public Accounting Services and Reportsreviews and Compilations

Professional Rules of Conduct Details and Auditor Responsibilities

The Audit of Accounting Estimates: Basic Material Relating to Accounting Estimates

Legal Liability Cases

Filters

Exam 21: Other Professional Accounting Services and Reports, Including Fraud Auditing

The most common reporting framework in Canada is the ________.

The objective of internal auditing is service to ________.

A financial ________ depends on one or more hypothetical assumptions.

The nature of extended procedures regarding fraud auditing is limited only by an auditor's imagination.

In the audit of financial statements,which of the following procedures would the auditor call an "extended procedure?"

Explain briefly the purpose of a value-for-money (VFM)audit.

Which of the following statements regarding agreed-upon procedures is FALSE?

Briefly distinguish between a compliance audit and a value-for-money audit.

Horizontal analysis can be used in fraud detection by ________.

Federal and provincial governments and their agencies and local governments use the CICA Public Sector Standards to guide their audits.

An operational audit would NOT include determining ________.

What does "willfully blind" mean within the context of fraud?

A good reason for involving fraud auditors in the planning of a regular audit of financial statements is ________.

When independent CAs in public practice take engagements to audit governmental units or entities that receive financial assistance from governmental units,they must follow ________.

The most effective long-run prevention of employee fraud is the practice of management caring for their employees.What can managers do to aid in fraud prevention?

Fraud examiners refer to people engaged specifically in the work of fraud investigation.

A VFM audit will tend to use a multidisciplinary audit team with expertise in different areas such as like economics or engineering.

The term significance as used in the assurance standards refers to ________.

When financial auditors suspect financial reporting fraud,they should discuss their suspicions with the client to see there is an alternative explanation.

Introduction to Auditing

Auditors Professional Roles and Responsibilities

Auditors Ethical and Legal Responsibilities

Reports on Audited Financial Statements

Preliminary Audit Planning: Understanding the Auditees Business

Assessing Risks in an Audit Engagement

Internal Control Over Financial Reporting

Audit Evidence and Assurance

Control Assessment and Testing

Audit Sampling

The Revenues, Receivables, and Receipts Process and Cash Account Balance

The Purchases, Payables, and Payments Process

Payroll and Production Processes

The Finance and Investment Process

hapter 15 Completing the Audit Work

Applying Professional Judgment to Form the Audit Opinion and Issue the Audit Report

Other Public Accounting Services and Reportsreviews and Compilations

Professional Rules of Conduct Details and Auditor Responsibilities

The Audit of Accounting Estimates: Basic Material Relating to Accounting Estimates

Legal Liability Cases

Filters