Questions from Auditing and Assurance

Q: Assessing control risk below high involves all of the following except

Assessing control risk below high involves all of the following except a. Identifying specific controls to rely on. b. Concluding that controls are ineffective. c. Performing tests of controls. d. Ana...

Q: Which of the following audit techniques would most likely provide an auditor

Which of the following audit techniques would most likely provide an auditor with the least assurance about the effectiveness of the operation of a control? a. Inquiry of entity personnel. b. Re perfo...

Q: The highest-quality and most reliable audit evidence that segregation of

The highest-quality and most reliable audit evidence that segregation of duties is properly implemented is obtained by a. Inspection of documents prepared by a third party but which contain the initia...

Q: SOC 1, Type 2 reports issued by the service organization’s auditor

SOC 1, Type 2 reports issued by the service organization’s auditor typically a. Provide reasonable assurance that their financial statements are free of material misstatements. b. Ensure that the enti...

Q: Significant deficiencies are matters that come to an auditor’s attention that should

Significant deficiencies are matters that come to an auditor’s attention that should be communicated to an entity’s audit committee because they represent a. Disclosures of information that significan...

Q: An auditor anticipates assessing control risk at a low level in an

An auditor anticipates assessing control risk at a low level in an IT environment. Under these circumstances, on which of the following controls would the auditor initially focus? a. Data capture cont...

Q: Mincin, CPA, is the auditor of the Raleigh Corporation.

Mincin, CPA, is the auditor of the Raleigh Corporation. Mincin is considering the audit work to be performed in the accounts payable area for the current year’s engagement. The prior year’s working pa...

Q: An auditor’s flowchart of an entity’s accounting system is a diagrammatic representation

An auditor’s flowchart of an entity’s accounting system is a diagrammatic representation that depicts the auditor’s a. Program for tests of controls. b. Understanding of the system. c. Understanding o...

Q: Samples to test internal controls are intended to provide a basis for

Samples to test internal controls are intended to provide a basis for an auditor to conclude whether a. The controls are operating effectively. b. The financial statements are materially misstated. c....

Q: When assessing the tolerable deviation rate, the auditor should consider that

When assessing the tolerable deviation rate, the auditor should consider that, while deviations from control procedures increase the risk of material misstatements, such deviations do not necessarily...