Questions from Auditing and Assurance

Q: Which of the following statements best describes management’s and the external auditor’s

Which of the following statements best describes management’s and the external auditor’s respective levels of responsibility for a public company’s financial statements? a. Management and the external...

Q: Which of the following best describes the general character of the section

Which of the following best describes the general character of the section of the “Principles Underlying an Audit of Financial Statements,” titled “Performance”? a. Description of the competence, inde...

Q: Before accepting an audit engagement, a successor auditor should make specific

Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor auditor regarding the predecessor’s a. Awareness of the consistency in the application of ge...

Q: A written understanding between the auditor and the entity concerning the auditor’s

A written understanding between the auditor and the entity concerning the auditor’s responsibility for fraud is usually set forth in a(n) a. Internal control letter. b. Letter of audit inquiry. c. Man...

Q: Bentley Bros. Book Company publishes more than 250 fiction and nonfiction

Bentley Bros. Book Company publishes more than 250 fiction and nonfiction titles. Most of the company’s books are written by southern authors and typically focus on subjects popular in the region. The...

Q: Which of the following presumptions is least likely to relate to the

Which of the following presumptions is least likely to relate to the reliability of audit evidence? a. The more effective internal control, the more assurance it provides about the accounting data and...

Q: Which of the following types of audit evidence is the least reliable

Which of the following types of audit evidence is the least reliable? a. Pre numbered purchase order forms prepared by the entity. b. Bank statements obtained from the entity. c. Test counts of invent...

Q: Match the term to the definition. /

Match the term to the definition.

Q: Assertions are expressed or implied representations by management that are reflected in

Assertions are expressed or implied representations by management that are reflected in the financial statement components. The auditor performs audit procedures to gather evidence to test those asser...

Q: Following are audit procedures that are normally conducted in the purchasing process

Following are audit procedures that are normally conducted in the purchasing process and related accounts. 1. Test a sample of purchase requisitions for proper authorization. 2. Test transactions arou...