Question 1

The reliance the auditor places on substantive tests in relation to the reliance placed on internal control varies in a relationship that is ordinarily:

Accepted Answer

A)  parallel. 
B)  inverse. 
C)  direct. 
D)  equal. 
A)  parallel. 
B)  inverse. 
C)  direct. 
D)  equal.

Question 2

A deficiency uncovered in the audit of internal control is explained by which of the following in relation to a financial statement misstatement?

Accepted Answer

A)  the amount of the misstatement 
B)  the likelihood of the misstatement 
C)  the amount, likelihood, and classification of the misstatement 
D)  the amount and the classification of the misstatement 
A)  the amount of the misstatement 
B)  the likelihood of the misstatement 
C)  the amount, likelihood, and classification of the misstatement 
D)  the amount and the classification of the misstatement

Question 3

List each of the five types of audit tests and list at least two types of evidence that may be obtained from each type of test.

Accepted Answer

• Procedures to obtain an understanding

Question 4

One difference between the procedures used to obtain an understanding of internal control and procedures used to test those controls is that tests of controls are more extensive.

Accepted Answer

A) True 
 B)False

Question 5

A system walkthrough is primarily used to:

Accepted Answer

A)  test balances. 
B)  test details of transactions. 
C)  gain an understanding of internal controls. 
D)  determine acceptance of the client. 
A)  test balances. 
B)  test details of transactions. 
C)  gain an understanding of internal controls. 
D)  determine acceptance of the client.

Question 6

When designing tests of controls and substantive tests an auditor is gathering evidence to satisfy the transaction related audit objectives. What are the four steps the auditor would normally follow to reduce assessed control risk?

Accepted Answer

1. Apply the transaction-related audit o

Question 7

In order to promote audit efficiency the auditor considers cost in selecting audit tests to perform. Which of the following audit tests would be the most costly?

Accepted Answer

A)  Analytical Procedures 
B)  Risk Assessment Procedures 
C)  Tests of Controls 
D)  Tests of Details of Balances 
A)  Analytical Procedures 
B)  Risk Assessment Procedures 
C)  Tests of Controls 
D)  Tests of Details of Balances

Question 8

Which of the following audit tests form the basis for an auditor's report on internal control over financial reporting?

Accepted Answer

A)  Analytical procedures 
B)  Tests of transactions 
C)  Tests of controls 
D)  Tests of details of balances 
A)  Analytical procedures 
B)  Tests of transactions 
C)  Tests of controls 
D)  Tests of details of balances

Question 9

The results of tests of controls and substantive tests of transactions affect the design of tests of details of balances.

Accepted Answer

A) True 
 B)False

Question 10

Discuss the relationship of each of the following to the extent of planned tests of details of balances: (1) tolerable misstatement, (2) inherent risk, (3) control risk, and (4) acceptable audit risk.

Accepted Answer

Inherent risk and control risk are direc

Question 11

What are the four steps auditors follow when they plan to reduce assessed control risk?

Accepted Answer

The steps are as follows:
1. Apply trans

Question 12

Many auditors perform extensive analytical procedures on audits because:

Accepted Answer

A)  they are required by GAAS. 
B)  they pinpoint errors in accounts. 
C)  they indicate areas of potential risk and misstatement. 
D)  they are required for tests of controls. 
A)  they are required by GAAS. 
B)  they pinpoint errors in accounts. 
C)  they indicate areas of potential risk and misstatement. 
D)  they are required for tests of controls.

Question 13

If tests of controls reveal that controls are sufficiently effective to justify reducing control risk, the auditor is justified in reducing substantive audit tests.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following ultimately determines the specific audit procedures necessary to provide an independent auditor with a reasonable basis for the expression of an opinion?

Accepted Answer

A)  the audit program 
B)  the auditor's judgment 
C)  generally accepted auditing standards 
D)  the auditor's working papers 
A)  the audit program 
B)  the auditor's judgment 
C)  generally accepted auditing standards 
D)  the auditor's working papers

The reliance the auditor places on substantive tests in relation to the reliance placed on internal control varies in a relationship that is ordinarily:

A deficiency uncovered in the audit of internal control is explained by which of the following in relation to a financial statement misstatement?

List each of the five types of audit tests and list at least two types of evidence that may be obtained from each type of test.

One difference between the procedures used to obtain an understanding of internal control and procedures used to test those controls is that tests of controls are more extensive.

A system walkthrough is primarily used to:

When designing tests of controls and substantive tests an auditor is gathering evidence to satisfy the transaction related audit objectives. What are the four steps the auditor would normally follow to reduce assessed control risk?

In order to promote audit efficiency the auditor considers cost in selecting audit tests to perform. Which of the following audit tests would be the most costly?

Which of the following audit tests form the basis for an auditor's report on internal control over financial reporting?

The results of tests of controls and substantive tests of transactions affect the design of tests of details of balances.

Discuss the relationship of each of the following to the extent of planned tests of details of balances: (1) tolerable misstatement, (2) inherent risk, (3) control risk, and (4) acceptable audit risk.

What are the four steps auditors follow when they plan to reduce assessed control risk?

Many auditors perform extensive analytical procedures on audits because:

If tests of controls reveal that controls are sufficiently effective to justify reducing control risk, the auditor is justified in reducing substantive audit tests.

Which of the following ultimately determines the specific audit procedures necessary to provide an independent auditor with a reasonable basis for the expression of an opinion?

The Demand for Audit and Other Assurance Services

The CPA Profession

Audit Reports

Professional Ethics

Legal Liability

The CPA Profession

Audit Evidence

Audit Planning and Analytical Procedures

Materiality and Risk

Section 404 Audits of Internal Control and Control Risk

Fraud Auditing

The Impact of Information Technology on the Audit Process

Audit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests of Transactions

Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Completing the Tests in the Sales and Collection Cycle: Accounts Receivable

Audit Sampling for Tests of Details and Balances

Audit of the Acquisition and Payment Cycle: Tests of Controls and Substantive Tests of Transactions, and Accounts Payable

Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts

Audit of the Payroll and Personnel Cycle

Audit of the Inventory and Warehousing Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash Balances

Completing the Audit

Other Assurance Services

Internal and Governmental Financial Auditing and Operational Auditing

Filters

Exam 13: Overall Audit Plan and Audit Program

The reliance the auditor places on substantive tests in relation to the reliance placed on internal control varies in a relationship that is ordinarily:

A deficiency uncovered in the audit of internal control is explained by which of the following in relation to a financial statement misstatement?

List each of the five types of audit tests and list at least two types of evidence that may be obtained from each type of test.

One difference between the procedures used to obtain an understanding of internal control and procedures used to test those controls is that tests of controls are more extensive.

A system walkthrough is primarily used to:

When designing tests of controls and substantive tests an auditor is gathering evidence to satisfy the transaction related audit objectives. What are the four steps the auditor would normally follow to reduce assessed control risk?

In order to promote audit efficiency the auditor considers cost in selecting audit tests to perform. Which of the following audit tests would be the most costly?

Which of the following audit tests form the basis for an auditor's report on internal control over financial reporting?

The results of tests of controls and substantive tests of transactions affect the design of tests of details of balances.

Discuss the relationship of each of the following to the extent of planned tests of details of balances: (1) tolerable misstatement, (2) inherent risk, (3) control risk, and (4) acceptable audit risk.

What are the four steps auditors follow when they plan to reduce assessed control risk?

Many auditors perform extensive analytical procedures on audits because:

If tests of controls reveal that controls are sufficiently effective to justify reducing control risk, the auditor is justified in reducing substantive audit tests.

Which of the following ultimately determines the specific audit procedures necessary to provide an independent auditor with a reasonable basis for the expression of an opinion?

The Demand for Audit and Other Assurance Services

The CPA Profession

Audit Reports

Professional Ethics

Legal Liability

The CPA Profession

Audit Evidence

Audit Planning and Analytical Procedures

Materiality and Risk

Section 404 Audits of Internal Control and Control Risk

Fraud Auditing

The Impact of Information Technology on the Audit Process

Audit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests of Transactions

Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Completing the Tests in the Sales and Collection Cycle: Accounts Receivable

Audit Sampling for Tests of Details and Balances

Audit of the Acquisition and Payment Cycle: Tests of Controls and Substantive Tests of Transactions, and Accounts Payable

Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts

Audit of the Payroll and Personnel Cycle

Audit of the Inventory and Warehousing Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash Balances

Completing the Audit

Other Assurance Services

Internal and Governmental Financial Auditing and Operational Auditing

Filters