FREE AND STUDY GAMES ABOUT AUDIT FINAL EXAM

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FREE AND STUDY GAMES ABOUT AUDIT FINAL EXAM

QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -307 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation Question 1: Ordinarily the work of internal auditors and others is used primarily in

Answer:

low risk areas

Question 2: Record counts

Answer:

totals that indicate the number of documents or transactions processed, compared with totals determined before processing Question 3: How does a review of the financial statements of a nonpublic company differ from an audit?

Answer:

a review does not involve a consideration of internal control, tests of the accounting records, or obtaining corroborating evidence, which are performed in an audit Question 4: each page of financial statement includes a caption:

Answer:

"see accountant's review report"

Question 5: tolerable deviation rate

Answer:

estimated deviation rate + upper precision Question 6: Which report is most likely to result from an audit in conformity with government auditing standards?

Answer:

internal control over financial reporting Question 7: when performing an audit of internal control for a public company, an auditor will consider what type of controls?

Answer:

preventive and detective

Question 8: In the review of a public company the auditor must

Answer:

disclaim an opinion Question 9: When performing a review of a nonpublic company, what is least likely to be included in auditor inquiries of management members with responsibility for financial and accounting matters?

Answer:

communications with related parties

Question 10: testing general control activities

Answer:

inquiries of personnel, review documentation of changes, observe seg of duties, test operation controls Question 11: What is not a report that external auditors would issue with respect of an audit based upon Governmental Auditing Standards?

Answer:

an operational report

Question 12: In assessing sampling risk, the risk of incorrect rejection and the risk of assessing

control risk too high relate to the:

Answer:

efficiency of the audit

Question 13: Financial auditing involves tests of the

Answer:

accuracy and reliability of financial info Question 14: One key control in the organization of the information systems department is the:

Answer:

separation of systems development group and the operations group Question 15: Parallel simulation is an appropriate audit approach for:

Answer:

calculating amount for declining balance depreciation charges

Question 16: An auditor is least likely to use computer software to

Answer:

assess computer control risk

Question 17: In the review of a public company the auditor must be

Answer:

independent

Question 18: What must be obtained in a review of a nonpublic company?

Answer:

engagement letter and representation letter

Question 19: A comfort letter is typically sent to whom and for what reason?

Answer:

The underwriters of a company's securities to assist them in their reasonable investigation of a registration statement.

Question 20: A material weakness correctly shortly after year end but prior to issuance of the financial statements is most likely to result in what type of opinion?

Answer:

adverse Question 21: What is a service auditors report on the processing of transactions by a service organization?

Answer:

service centers engage their own auditors to review their processing controls and provide a report for the users of a center and users' auditors. these reports are known as service auditors' reports

Question 22: sample size formula

Answer:

((pop size * incorrect rejection coefficient * estimated standard deviation)/planned allowance for sampling risk)^2

Question 23: stratification

Answer:

used to control variability, relates materiality to selection process Question 24: A control that reduces the risk than an existing or potential control weakness will result in a failure to meet a control objective is referred to as a

Answer:

compensating control

Question 25: computer networks

Answer:

the electronic transmission of info between computers

Question 26: operational auditing

Answer:

evaluates performance as measured by mgmt objectives. focuses on efficiency, effectiveness, and economy of operations