Questions from Auditing and Assurance

Q: Which of the following would be considered an analytical procedure?

Which of the following would be considered an analytical procedure? a. Testing purchasing, shipping, and receiving cutoff activities. b. Comparing inventory balances to recent sales activities. c. Pro...

Q: Which of the following procedures would a CPA most likely perform in

Which of the following procedures would a CPA most likely perform in planning a financial statement audit? a. Make inquiries of the client’s lawyer concerning pending litigation. b. Perform cutoff tes...

Q: Which of the following statements is correct concerning analytical procedures used in

Which of the following statements is correct concerning analytical procedures used in planning an audit engagement? a. They often replace the tests of controls that are performed to assess control ris...

Q: The evidence considered most appropriate by auditors is best described as

The evidence considered most appropriate by auditors is best described as a. Internal documents such as sales invoice copies produced under conditions of strong internal control. b. Written representa...

Q: The company being audited has an internal auditor who is both competent

The company being audited has an internal auditor who is both competent and objective. The independent auditor wants to assign tasks for the internal auditor to perform. Under these circumstances, the...

Q: Which of the following conditions most likely would pose the greatest risk

Which of the following conditions most likely would pose the greatest risk in accepting a new audit engagement? a. Staff will need to be rescheduled to cover this new client. b. There will be a client...

Q: What are some major reasons for departing from the standard, unqualified

What are some major reasons for departing from the standard, unqualified report on internal control over financial reporting?

Q: When initiating communications with predecessor auditors, prospective auditors should expect

When initiating communications with predecessor auditors, prospective auditors should expect a. To take responsibility for obtaining the client’s consent for the predecessor to give information about...

Q: The creation of the PCAOB by the Sarbanes–Oxley Act has

The creation of the PCAOB by the Sarbanes–Oxley Act has affected both the standards-setting process and the periodic review of the quality of an audit firm’s work. Required: a. Identify the responsib...

Q: Generally accepted auditing standards require that auditors always prepare and use

Generally accepted auditing standards require that auditors always prepare and use a. A written planning memorandum explaining the auditors’ understanding of the client’s business. b. A written client...