Questions from Auditing and Assurance

Q: Auditors’ understanding of the internal control in an entity provides information for

Auditors’ understanding of the internal control in an entity provides information for a. Determining whether members of the audit team have the required competence and capabilities to perform the audi...

Q: Following is a list of various professional services. Identify each by

Following is a list of various professional services. Identify each by its apparent characteristics as audit engagement, attestation engagement, or assurance engagement. Because audits are a subset of...

Q: Which of the following recognizes that an audit conducted under generally accepted

Which of the following recognizes that an audit conducted under generally accepted auditing standards may not detect all material misstatements? a. Absolute assurance. b. Professional judgment. c. Rel...

Q: If the auditor plans to assess control risk at less than the

If the auditor plans to assess control risk at less than the maximum and rely on controls, and the nature, timing, and extent of further audit procedures are based on that lower assessment, the audito...

Q: When testing a control activity’s operating effectiveness, procedures the auditor performs

When testing a control activity’s operating effectiveness, procedures the auditor performs to test operating effectiveness would likely include a. Inquiry of appropriate personnel. b. Reading over the...

Q: Matters that could affect the necessary extent of testing for a control

Matters that could affect the necessary extent of testing for a control activity as it related to the degree of auditor reliance on a control activity would not include the following: a. The frequency...

Q: The auditor should assess control risk for each relevant assertion by evaluating

The auditor should assess control risk for each relevant assertion by evaluating the evidence obtained from all sources, including a. The auditor’s testing of controls for the audit of internal contro...

Q: Once the auditor detects a control deficiency, which of the following

Once the auditor detects a control deficiency, which of the following steps must he or she take first? a. Perform tests of other controls related to the same assertion as the control deemed ineffectiv...

Q: The most important fundamental component of an entity’s internal control is

The most important fundamental component of an entity’s internal control is a. Effectiveness and efficiency of operations. b. People who operate the control system. c. Reliability of financial reporti...

Q: According to the PCAOB, during the audit of internal controls for

According to the PCAOB, during the audit of internal controls for an issuer, the ultimate objective of testing the design effectiveness of internal controls is to a. Determine whether the company’s co...