Questions from Auditing and Assurance

Q: Auditors perform analytical procedures in the planning stage of an audit for

Auditors perform analytical procedures in the planning stage of an audit for the purpose of a. Deciding the matters to cover in an engagement letter. b. Identifying unusual conditions that deserve mor...

Q: A primary objective of analytical procedures used in the final review stage

A primary objective of analytical procedures used in the final review stage of an audit is to a. Identify account balances that represent specific risks relevant to the audit. b. Gather evidence from...

Q: What are the primary reasons for conducting an evaluation of an audit

What are the primary reasons for conducting an evaluation of an audit client’s internal control?

Q: An auditor’s analytical procedures indicate a lower than expected return on an

An auditor’s analytical procedures indicate a lower than expected return on an equity method investment. This situation most likely could have been caused by a. An error in recording amortization of t...

Q: Which of the following risk types increase when an auditor performs substantive

Which of the following risk types increase when an auditor performs substantive analytical audit procedures for financial statement accounts at an interim date? a. Inherent. b. Control. c. Detection....

Q: Which of the following matters relating to an entity’s operations would an

Which of the following matters relating to an entity’s operations would an auditor most likely consider as an inherent risk factor in planning an audit? a. The entity’s fiscal year ends on June 30. b....

Q: What is the primary objective of the fraud brainstorming session?

What is the primary objective of the fraud brainstorming session? a. Determine audit risk and materiality. b. Identify whether analytical procedures should be applied to the revenue accounts. c. Asses...

Q: Ordinarily, what source of evidence should least affect audit conclusions?

Ordinarily, what source of evidence should least affect audit conclusions? a. External documentary evidence. b. Inquiry of management. c. Documentation prepared by the audit team. d. Inquiry of entity...

Q: Auditing standards do not require auditors of financial statements to a

Auditing standards do not require auditors of financial statements to a. Understand the nature of errors and frauds. b. Assess the risk of occurrence of errors and frauds. c. Design audits to provide...

Q: One of the typical characteristics of management fraud is a.

One of the typical characteristics of management fraud is a. Falsification of documents in order to misappropriate funds from an employer. b. Victimization of investors through the use of materially m...