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

A CPA's audit client is a small charity which funds development projects in a small foreign country.Most of its donations come in the form of cash,with tax receipts issued to the donors.Included in the cash receipts are weekly donations by one person,Mr.X,whose last name is easily identifiable as coming from that foreign country.Some of these cash donations exceed $10,000.The CPA once asked about Mr.X and accepted as an answer that Mr.X was a wealthy entrepreneur but the CPA has done no other work.Which of the following statements is TRUE?

Unlike other auditors,fraud examiners think of materiality as a cumulative amount.

The most common reporting framework in Canada is the ________.

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

An operational audit would NOT include determining ________.

Differences between independent auditors of financial statements and fraud examiners include of the following,EXCEPT:

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

Before reporting on the financial statements of a Canadian entity that have been prepared in accordance with the accounting principles of another country,an auditor practising in Canada should ________.

Auditors should mark the evidence,identifying the location,condition,date,time,and circumstances as soon as it appears to be a signal of fraud.

A value-for-money (VFM)audit will tend to use a multidisciplinary audit team with expertise in different areas such as like economics or engineering.

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

What is Management's Discussion and Analysis (MD&A)? What is the nature of the auditor's responsibility with regard to MD&A?

The purpose of an operational audit is to ________.

Auditors of governmental units would be presumed to be lacking in independence if they were ________.

In a(n)________ engagement,the practitioner offers a conclusion on the accountable party's written assertion.

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

In what form does the report of the result of the agreed-upon procedures engagement take?

Horizontal analysis can be used in fraud detection by ________.

Canada was among the first of the industrialized countries to pass legislation against the proceeds of crime,money laundering and terrorist financing.

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