ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

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ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Final Exam 1 Chp. 9-13

ACC 403 Final Exam 2 Chp. 14-17 & 21&24

ACC 403 Final Exam Part 1

ACC 403 Final Exam Part 2

ACC 403 Mid Term I

ACC 403 Mid Term Part 1

ACC 403 Mid Term Part 2

ACC 403 midterm exam part 1

ACC 403 Midterm Exam part 2

ACC 403 midterm part 1

ACC 403 Midterm part 2

ACC 403 Quiz 1 Set 3

ACC 403 Quiz 1 Set 1

ACC 403 Quiz 1 Set 2

ACC 403 Quiz 2

ACC 403 Quiz 2 Chp 3-4

ACC 403 Quiz 3 Chapter 5-6

ACC 403 Quiz 3 Set 1

ACC 403 Quiz 3 Set 2

ACC 403 Quiz 3 Set 3

ACC 403 Quiz 4

ACC 403 Quiz 4 Chapter 9

ACC 403 Quiz 5

ACC 403 Quiz 5 Chapters 10-11

ACC 403 Quiz 5 week 7

ACC 403 Quiz 6

ACC 403 Quiz 6

ACC 403 Quiz 6 Set 2

ACC 403 Quiz 6 Set 3

ACC 403 Quiz 6 Set 4

ACC 403 Quiz 7

ACC 403 Quiz 7 Chapter 14 -15

ACC 403 Quiz 7 Set 2

ACC 403 Quiz 8

ACC 403 quiz 8

ACC 403 Quiz 8 Chapters 16-17

ACC 403 Quiz 8 Set 1

ACC 403 Quiz 8 Set 2

ACC 403 Quiz Chapters 21-24

ACC 403 Quiz Set 4

ACC 403 Week 10 quiz 8

ACC 403 Week 10 Quiz 8 – Part 1 Chapter 16

ACC 403 Week 10 Quiz 8 – Part 2 Chapter 17

ACC 403 Week 11 FINAL EXAM PART 1

ACC 403 Week 11 FINAL EXAM PART 2

ACC 403 Week 2 Quiz 1

ACC 403 Week 3 Quiz 2

ACC 403 Week 4 Quiz 3

ACC 403 Week 5 Midterm Exam Part 1

ACC 403 Week 5 Midterm Part 2

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Final Exam 1 Chp. 9-13

1.      If an auditor believes the chance of financial failure is high and there is a corresponding increase in business risk for the auditor, acceptable audit risk would likely:

2.      The preliminary judgment about materiality and the amount of audit evidence accumulated are ________ related.

3.      Auditors generally allocate the preliminary judgment about materiality to the:

4.      Auditors are ________ to document the known and likely misstatements in the financial statements under audit.

5.      An auditor who audits a business cycle that has low inherent risk should:

6.      When one material weakness is present at the end of the year, management of a public company must conclude that internal control over financial reporting is:

7.      An audit procedure that would most likely be used by an auditor in performing tests of control procedures in which the segregation of functions and that leaves no “audit” trail is:

8.      Which of the following is responsible for establishing a private company’s internal control?

9.      Internal controls normally include procedures designed to provide reasonable assurance that:

10.   Internal controls:

11.   Financial statement manipulation risk is arguably present for all companies’ financial statements. However, the risk is elevated for companies that:

12.   Which of the following is not a factor that relates to opportunities to misappropriate assets?

13.   Two of the most useful warning signals that can indicate that revenue fraud is occurring are:

14.   In the fraud triangle, fraudulent financial reporting and misappropriation of assets:

15.   Which of the following is a factor that relates to incentives to misappropriate assets?

16.   The audit approach in which the auditor runs his or her own program on a controlled basis to verify the client’s data recorded in a machine language is:

17.   Auditors should evaluate which of the following before evaluating application controls because of the potential for pervasive effects?

18.   Which of the following is a component of general controls?

19.   General controls may include firewalls which are used to protect from:

20.   An internal control deficiency occurs when computer personnel:

21.   Analytical procedures:

22.   In the context of an audit of financial statements, substantive tests are audit procedures that:

23.   A system walkthrough is primarily used to help the auditor:

24.   Which of the following audit tests is usually the least costly to perform?

25.   Presentation and disclosure related audit objectives would be performed in which phase of the audit process?

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Final Exam 2 Chp. 14-17 & 21&24

1.      What critical event must take place before goods can be shipped in order to assure payment can be reasonably expected?

2.      When designing audit procedures, tracing of source documents to the customers subsidiary ledger and subsequently to the general ledger is done to satisfy what assertion?

3.      The audit procedure referred to as proof of cash receipts is particularly useful to test:

4.      When an employee who is authorized to make customer entries in the accounts receivable subsidiary ledger, purposefully enters cash received into the wrong customer’s account that employee may be suspected of:

5.      A document sent to each customer showing his or her beginning accounts receivable balance and the amount and date of each sale, cash payment received, any debit or credit memo issued, and the ending balance is the:

6.      One of the causes of nonsampling risk is:

7.      A sample in which every possible combination of items in the population has an equal chance of constituting the sample is a:

8.      To determine if a sample is truly representative of the population, an auditor would be required to:

9.      When the auditor decides to select less than 100 percent of the population for testing, the auditor is said to use:

10.   Which of the following would have the least impact in determining sample size?

11.   When do most companies record sales returns and allowances?

12.   Analytical procedures:

13.   The audit procedure that provides the auditor with the most appropriate evidence when performing test of details of balances for accounts receivable is:

14.   Most tests of accounts receivable are based on what schedule, file, or listing?

15.   The two primary classes of transactions in the sales and collection cycle are:

16.   The appropriate assumption to make regarding the overall percent of error in those population items containing an error is:

17.   The method used to measure the estimated total error amount in a population when there is both a recorded value and an audited value for each item in the sample is:

18.   The auditor is concerned with the audited value rather than the error amount of each item in the sample when using:

19.   The allowance for sampling risk when no misstatements are found in the sample is:

20.   The most commonly used method of statistical sampling for tests of details of balances is:

21.   Which of the following is a significant audit concern related to the transfer of inventory from one location to another?

22.   A major difficulty in the verification of inventory cost records for the purpose of inventory valuation is in determining the reasonableness of the:

23.   In most manufacturing companies, the inventory and warehousing cycle begins with the:

24.   When determining the sample size for the number of items the auditor should count during the physical inventory:

25.   The inventory and warehousing cycle can be thought of as having two separate but closely related systems, one involving the actual physical flow of goods, and the other the:

26.   The standard letter of inquiry to the client’s legal counsel should be prepared on:

27.   Auditing standards require the auditor to communicate all management frauds and illegal acts to the audit committee:

28.   A client representation letter is:

29.   At the completion of the audit, management is asked to make a written statement that it is not aware of any undisclosed contingent liabilities. This statement would appear in the:

30.   Which of the following subsequent events is most likely to result in an adjustment to a company’s financial statements?

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Final Exam Part 1

1.      Auditors typically rely on internal controls of their private company clients:

2.      An auditor who audits a business cycle that has low inherent risk should:

3.

Inherent risk is often high for an account such as:

4.

Auditors frequently refer to the terms audit assurance, overall assurance, and level of assurance to refer to ________.

5.

To what extent do auditors typically rely on internal controls of their public company clients?

6.

Which of the following is responsible for establishing a private company’s internal control?

7.

The auditors primary purpose in auditing the client’s system of internal control over financial reporting is:

8.

A five-step approach can be used to identify deficiencies, significant deficiencies, and material weaknesses. The first step in this approach is:

9.

The employee in charge of authorizing credit to the company’s customers does not fully understand the concept of credit risk. This lack of knowledge would constitute:

10.

Which of the following deal with ongoing or periodic assessment of the quality of internal control by management?

11.

Misappropriation of assets is normally perpetrated by:

12.

Fraud is more prevalent in smaller businesses and not-for-profit organizations because it is more difficult for them to maintain:

13.

Who is most likely to perpetrate fraudulent financial reporting?

14.

Company management is often under pressure to increase revenue and/or net income. One approach is to use a “bill and hold” arrangement. This is an example of which of the following?

15.

Most cases of fraudulent reporting involve:

16.

A ________ is responsible for controlling the use of computer programs, transaction files and other computer records and documentation and releases them to the operators only when authorized.

17.

The approach to auditing where the auditor does not test automated controls to reduce assessed control risk is called:

18.

Which of the following is a component of general controls?

19.

Which of the following computer-assisted auditing techniques inserts an audit module in the client’s application system to identify specific types of transactions?

20.

The audit approach in which the auditor runs his or her own program on a controlled basis to verify the client’s data recorded in a machine language is:

21.

The auditor would design which of the following audit tests to detect possible monetary errors in the financial statements?

22.

Which of the following further audit procedures are used to determine whether all six transaction-related audit objectives have been achieved for each class of transactions?

23.

The purpose of tests of controls is to provide reasonable assurance that the:

24.

If tests of controls support the control risk assessment, then ________ in the audit risk model is increased.

25.

A procedure designed to test for monetary misstatements directly affecting the correctness of financial statement balances is a:

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Final Exam Part 2

1.      A document prepared to initiate shipment of the goods sold by an independent shipper is the:

2.      The document used to indicate to the customer the amount of a sale and payment due date is the:

3.      Who is generally responsible for opening receipts when a company uses a lockbox to speed the handling of cash receipts?

4.      An effective procedure to test for unbilled shipments is to trace from the:

5.      A ________ is a document that is matched with the customer order to assure that the correct quantity and type of goods are shipped.

6.      The most serious shortcoming of the haphazard sample selection method is:

7.      When the computed upper exception rate is greater than the tolerable exception rate, it is necessary for the auditor to take specific action. Which of the following courses of action would be most difficult to justify?

8.      A sample in which every possible combination of items in the population has an equal chance of constituting the sample is a:

9.      In systematic sample selection, the population size is divided by the number of sample items desired in order to determine the:

10.   When the auditor decides to select less than 100 percent of the population for testing, the auditor is said to use:

11.   If the client’s internal control for recording sales returns and allowances is evaluated as ineffective:

12.   The understatement of sales and accounts receivable is best uncovered by:

13.   The audit procedure that provides the auditor with the most appropriate evidence when performing test of details of balances for accounts receivable is:

14.   Which of the following most likely would be detected by a review of a client’s sales cutoff?

15.   The most important aspect of evaluating the client’s method of obtaining a reliable cutoff is to:

16.   The client’s trial balance has a balance of $410,000 for merchandise inventory. As the auditor you are willing to accept a balance that is within $20,000 of either side of the recorded balance. You compute a 95% confidence interval of $395,000 to $425,000. You could therefore:

17.   When the sample selection is done using probability proportional to size sample selection (PPS):

18.   The appropriate assumption to make regarding the overall percent of error in those population items containing an error is:

19.   When errors are found in a sample, auditors in practice generally make the assumption:

20.   If an auditor desires a greater level of assurance in auditing a balance, the acceptable risk of incorrect acceptance:

21.   From which of the following evidence-gathering audit procedures would an auditor obtain most assurance concerning the existence of inventories?

22.   Comparing the physical counts with the perpetual inventory master files satisfies the balance-related audit objective of:

23.   A major difficulty in the verification of inventory cost records for the purpose of inventory valuation is in determining the reasonableness of the:

24.   Boxes or other containers holding inventory should also be opened during test counts to determine the ________ of the inventory.

25.   You are auditing the inventory account and are concerned about the possibility of an inventory overstatement. What is the best audit procedure to detect damaged inventory?

26.   One of the primary approaches in dealing with uncertainties in loss contingencies uses a ________ threshold.

27.   If a potential loss on a contingent liability is remote, the liability usually is:

28.   While there is no professional requirement to do so on audit engagements, CPAs frequently issue a formal “management” letter to clients. The primary purpose of this letter is to provide:

29.   The standard letter of inquiry to the client’s legal counsel should be prepared on:

30.   The letter of representation obtained from an audit client should be:

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Mid Term I

1.      An audit to determine whether an entity is following specific procedures or rules set down by some higher authority is classified as a(n):

2.      Which of the following services provides the lowest level of assurance on a financial statement?

3.      Any service that requires a CPA firm to issue a report about the reliability of an assertion that is made by another party is a(n):

4.      Which of the following is not a SysTrust Services principle as defined by the AICPA?

5.      An examination of part of an organization’s procedures and methods for the purpose of evaluating efficiency and effectiveness is what type of audit?

6.      One objective of an operational audit is to:

7.      Hansen Corporation’s stock is listed on a national stock exchange and registered with the Securities and Exchange Commission. Hansen’s management hires a CPA to perform an independent audit of Hansen’s financial statements. The primary objective of this audit is to provide assurance to the:

8.      The AICPA has authority to establish standards and rules in all but which of the following areas?

9.      Which of the following is an element of the CPA’s quality control system that should be considered in establishing its quality control policies and procedures?

10.   Within the context of quality control, the primary purpose of continuing professional education and training activities is to enable a CPA firm to provide its personnel with:

11.   Which of the following are audit standards used in professional practice by audit firms?

12.   The organization that is responsible for providing oversight for auditors of public companies is called the ________.

13.   When the auditor determines that the financial statements are fairly stated, but there is a nonindependent relationship between the auditor and the client, the auditor should issue:

14.   A misstatement in the financial statements can be considered material if knowledge of the misstatement will affect a decision of:

15.   When dealing with materiality and scope limitation conditions:

16.   Which of the following is least likely to cause uncertainty about the ability of an entity to continue as a going concern?

17.   The appropriate audit report date for a standard nonqualified audit report for a non-public entity should be the:

18.   Auditing standards require that the audit report must be titled and that the title must:

19.   The AICPA’s Code of Professional Conduct requires independence for all:

20.   The AICPA’s Code of Professional Conduct states that a CPA should maintain integrity and objectivity. The term “objectivity” in the Code refers to a CPA’s ability to:

21.   When determining whether independence is impaired because of an ownership interest in a client company, materiality will affect ownership:

22.   Several months after an unqualified audit report was issued, the auditor discovers the financial statements were materially misstated. The client’s CEO agrees that there are misstatements, but refuses to correct them. She claims that “confidentiality” prevents the CPA from informing anyone. Which of the following statements is correct?

23.   The underlying reason for a code of professional conduct for any profession is:

24.   Freedom from ________ means the absence of relationships that might interfere with objectivity or integrity.

25.   Interpretations of the rules regarding independence allow an auditor to serve as:

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Mid Term Part 1

1.      Recording, classifying, and summarizing economic events in a logical manner for the purpose of providing financial information for decision making is commonly called:

2.      ________ risk reflects the possibility that the information upon which the business decision was made was inaccurate.

3.      The use of the Certified Public Accountant title is regulated by:

4.      The Sarbanes-Oxley Act applies to which of the following companies?

5.      Three common types of attestation services are:

6.      The three requirements for becoming a CPA include all but which of the following?

7.      Members of the Public Company Accounting Oversight Board are appointed and overseen by:

8.      Assume the Public Company Accounting Oversight Board (PCAOB) identifies a violation during its inspection of a registered accounting firm. The PCAOB:

9.      Hansen Corporation’s stock is listed on a national stock exchange and registered with the Securities and Exchange Commission. Hansen’s management hires a CPA to perform an independent audit of Hansen’s financial statements. The primary objective of this audit is to provide assurance to the:

10.   Which of the following are audit standards used in professional practice by audit firms?

11.   Statements on Auditing Standards issued by the AICPA’s Auditing Standards Board are:

12.   In order to properly plan and perform an audit, an important fact for both the auditor and the client to understand is that:

13.   The first step to be followed when deciding the appropriate audit report in a given set of circumstances is to:

14.   As a result of management’s refusal to permit the auditor to physically examine inventory, the auditor must depart from the unqualified audit report because:

15.   If the phrase “except for” is present in the opinion paragraph of the audit report, the auditor has issued a(n):

16.   Under AICPA auditing standards, the primary auditor issuing the opinion on the financial statements is called the:

17.   Whenever the client imposes restrictions on the scope of the audit, the auditor should be concerned that management may be trying to prevent discovery of misstatements. In such cases, the auditor will likely issue a:

18.   Which of the following is least likely to cause uncertainty about the ability of an entity to continue as a going concern?

19.   The members of a client’s “audit committee” should be:

20.   Which of the following services are allowed by the SEC whenever a CPA also audits the company?

21.   A six-step approach is often used to resolve an ethical dilemma. The first step in this process is to:

22.   Under the AICPA independence rules, the auditor:

23.   Independence is required of a CPA when performing:

24.   When CPAs are able to maintain their actual independence, it is referred to as independence in:

25.   The Sarbanes-Oxley Act ________ a CPA firm from doing both bookkeeping and auditing services for the same public company client.

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Mid Term Part 2

1.      The principal issue in cases involving alleged negligence is usually:

2.      “Absence of reasonable care that can be expected of a person in a set of circumstances” defines:

3.      While the Foreign Corrupt Practices Act of 1977 remains in effect, its internal control provisions have been largely superseded by which of the following?

4.      The standard of due care to which the auditor is expected to adhere to in the performance of the audit is referred to as the:

5.      In the performance of an audit, a CPA:

6.      The laws that have been developed through court decisions are called:

7.      The auditor’s best defense when material misstatements are not uncovered is to have conducted the audit:

8.      The responsibility for the preparation of the financial statements and the accompanying footnotes belongs to:

9.      A questioning mindset:

10.   The posting and summarization audit objective is the auditor’s counterpart to management’s assertion of:

11.   The concept of reasonable assurance indicates that the auditor is:

12.   If a short-term note payable is included in the accounts payable balance on the financial statement, there is a violation of the:

13.   The evaluations of financial information through analysis of plausible relationships among financial and nonfinancial data is the definition of:

14.   Appropriateness of evidence is a measure of the:

15.   The auditor must gather sufficient and appropriate evidence during the course of the audit. Sufficient evidence must:

16.   When auditors use documentation to support recorded transactions and amounts, the process is usually called:

17.   A benefit obtained from using industry averages is that it provides a(n):

18.   When the auditor uses tracing as an audit procedure for tests of transactions she is primarily concerned with which audit objective?

19.   Calculating the gross margin for the current year under audit as a percent of sales and comparing it with previous years is what type of evidence?

20.   Business risk:

21.   In making client acceptance decisions, the audit firm will consider:

22.   If an auditor is requested to perform nonaudit services for a public company audit client, who is responsible for agreeing to those services with the audit firm?

23.   The auditor is likely to accumulate more evidence when the audit is for a company:

24.   Most auditors assess inherent risk as high for related parties and related-party transactions because:

25.   The two major factors affecting acceptable audit risk are:

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 midterm exam part 1

1.      ________ risk reflects the possibility that the information upon which the business decision was made was inaccurate.

2.      Any service that requires a CPA firm to issue a report about the reliability of an assertion that is made by another party is a(n):

3.      In “auditing” financial accounting data, the primary concern is with:

4.      Which of the following services provides the lowest level of assurance on a financial statement?

5.      Three common types of attestation services are:

6.      The most common way for users to obtain reliable information is to:

7.      The legal right to perform audits is granted to a CPA firm by regulation of:

8.      The form that must be filed with the Securities and Exchange Commission whenever a company plans to issue new securities to the public is the:

9.      For privately held companies who is responsible for establishing auditing standards?

10.   The “Principles Underlying an Audit in Accordance with Generally Accepted Auditing Principles” provides a framework to help auditors:

11.   The Public Company Accounting Oversight Board:

12.   Statements on Standards for Accounting and Review Services are issued by the:

13.   The auditor’s responsibility section of the standard audit report states that the auditor is:

14.   The standard unqualified audit report:

15.   Under AICPA auditing standards, the primary auditor issuing the opinion on the financial statements is called the:

16.   An audit of historical financial statements most commonly includes the:

17.   The standard unqualified audit report for public entities includes the following three paragraphs:

18.   If most or all users’ decisions that are based on the financial statements are likely to be significantly affected, the materiality level is:

19.   Which of the following is required for a firm to designate itself “Member of the American Institute of Certified Public Accountants” on its letterhead?

20.   The Sarbanes-Oxley Act requires a cooling off period of ________ before a member of an audit team can work for a client in a key management position?

21.   The Sarbanes-Oxley Act ________ a CPA firm from doing both bookkeeping and auditing services for the same public company client.

22.   Which of the following services are allowed by the SEC whenever a CPA also audits the company?

23.   “Independence” in auditing means:

24.   Several months after an unqualified audit report was issued, the auditor discovers the financial statements were materially misstated. The client’s CEO agrees that there are misstatements, but refuses to correct them. She claims that “confidentiality” prevents the CPA from informing anyone. Which of the following statements is correct?

25.   An auditor’s independence is considered impaired if the auditor has:

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Midterm Exam part 2

1.      In the performance of an audit, a CPA:

2.      Under the laws of agency, partners of a CPA firm may be liable for the work of others on whom they rely. This would not include:

3.      An individual who is not party to the contract between a CPA and the client, but who is known by both and is intended to receive certain benefits from the contract is known as:

4.      Fraud occurs when:

5.      Laws that have been passed by the U.S. Congress and other governmental units are:

6.      While the Foreign Corrupt Practices Act of 1977 remains in effect, its internal control provisions have been largely superseded by which of the following?

7.      The cycle approach to auditing:

8.      If a short-term note payable is included in the accounts payable balance on the financial statement, there is a violation of the:

9.      If the auditor believes that the financial statements are not fairly stated or is unable to reach a conclusion because of insufficient evidence, the auditor:

10.   The auditor has no responsibility to plan and perform the audit to obtain reasonable assurance that misstatements, whether caused by errors or fraud, that are not ________ are detected.

11.   Which of the following is not one of the three categories of assertions?

12.   “The auditor should not assume that management is dishonest, but the possibility of dishonesty must be considered.” This is an example of:

13.   Appropriateness of evidence is a measure of the:

14.   An example of a document the auditor receives from the client, but which was prepared by someone outside the client’s organization, is a:

15.   A(n) ________ is the detailed instruction that explains the audit evidence to be obtained during the audit.

16.   The Auditing Standards Board has concluded that analytical procedures are so important that they are required during:

17.   Two determinants of the persuasiveness of evidence are:

18.   Evidence is generally considered appropriate when:

19.   Calculating the gross margin for the current year under audit as a percent of sales and comparing it with previous years is what type of evidence?

20.   If an auditor is requested to perform nonaudit services for a public company audit client, who is responsible for agreeing to those services with the audit firm?

21.   Most auditors assess inherent risk as high for related parties and related-party transactions because:

22.   Smith, CPA has requested permission to communicate with the predecessor auditor in order to review certain workpapers for high risk accounts for a new audit client. The new audit client’s refusal to allow this communication to occur would impact Rodgers decision concerning:

23.   Which is a liquidity activity ratio?

24.   The purpose of an engagement letter is to:

25.   A measure of how willing the auditor is to accept that the financial statements may be materially misstated after the audit is completed and an unqualified opinion has been issued is the:

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 midterm part 1

1.      ________ risk reflects the possibility that the information upon which the business decision was made was inaccurate.

2.      Any service that requires a CPA firm to issue a report about the reliability of an assertion that is made by another party is a(n):

3.      In “auditing” financial accounting data, the primary concern is with:

4.      Which of the following services provides the lowest level of assurance on a financial statement?

5.      Three common types of attestation services are:

6.      The most common way for users to obtain reliable information is to:

7.      The legal right to perform audits is granted to a CPA firm by regulation of:

8.      The form that must be filed with the Securities and Exchange Commission whenever a company plans to issue new securities to the public is the:

9.      For privately held companies who is responsible for establishing auditing standards?

10.   The “Principles Underlying an Audit in Accordance with Generally Accepted Auditing Principles” provides a framework to help auditors:

11.   The Public Company Accounting Oversight Board:

12.   Statements on Standards for Accounting and Review Services are issued by the:

13.   The auditor’s responsibility section of the standard audit report states that the auditor is:

14.   The standard unqualified audit report:

15.   Under AICPA auditing standards, the primary auditor issuing the opinion on the financial statements is called the:

16.   An audit of historical financial statements most commonly includes the:

17.   The standard unqualified audit report for public entities includes the following three paragraphs:

18.   If most or all users’ decisions that are based on the financial statements are likely to be significantly affected, the materiality level is:

19.   Which of the following is required for a firm to designate itself “Member of the American Institute of Certified Public Accountants” on its letterhead?

20.   The Sarbanes-Oxley Act requires a cooling off period of ________ before a member of an audit team can work for a client in a key management position?

21.   The Sarbanes-Oxley Act ________ a CPA firm from doing both bookkeeping and auditing services for the same public company client.

22.   Which of the following services are allowed by the SEC whenever a CPA also audits the company?

23.   “Independence” in auditing means:

24.   Several months after an unqualified audit report was issued, the auditor discovers the financial statements were materially misstated. The client’s CEO agrees that there are misstatements, but refuses to correct them. She claims that “confidentiality” prevents the CPA from informing anyone. Which of the following statements is correct?

25.   An auditor’s independence is considered impaired if the auditor has:

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Midterm part 2

1.      In the performance of an audit, a CPA:

2.      Under the laws of agency, partners of a CPA firm may be liable for the work of others on whom they rely. This would not include:

3.      An individual who is not party to the contract between a CPA and the client, but who is known by both and is intended to receive certain benefits from the contract is known as:

4.      Fraud occurs when:

5.      Laws that have been passed by the U.S. Congress and other governmental units are:

6.      While the Foreign Corrupt Practices Act of 1977 remains in effect, its internal control provisions have been largely superseded by which of the following?

7.      The cycle approach to auditing:

8.      If a short-term note payable is included in the accounts payable balance on the financial statement, there is a violation of the:

9.      If the auditor believes that the financial statements are not fairly stated or is unable to reach a conclusion because of insufficient evidence, the auditor:

10.   The auditor has no responsibility to plan and perform the audit to obtain reasonable assurance that misstatements, whether caused by errors or fraud, that are not ________ are detected.

11.   Which of the following is not one of the three categories of assertions?

12.   “The auditor should not assume that management is dishonest, but the possibility of dishonesty must be considered.” This is an example of:

13.   Appropriateness of evidence is a measure of the:

14.   An example of a document the auditor receives from the client, but which was prepared by someone outside the client’s organization, is a:

15.   A(n) ________ is the detailed instruction that explains the audit evidence to be obtained during the audit.

16.   The Auditing Standards Board has concluded that analytical procedures are so important that they are required during:

17.   Two determinants of the persuasiveness of evidence are:

18.   Evidence is generally considered appropriate when:

19.   Calculating the gross margin for the current year under audit as a percent of sales and comparing it with previous years is what type of evidence?

20.   If an auditor is requested to perform nonaudit services for a public company audit client, who is responsible for agreeing to those services with the audit firm?

21.   Most auditors assess inherent risk as high for related parties and related-party transactions because:

22.   Smith, CPA has requested permission to communicate with the predecessor auditor in order to review certain workpapers for high risk accounts for a new audit client. The new audit client’s refusal to allow this communication to occur would impact Rodgers decision concerning:

23.   Which is a liquidity activity ratio?

24.   The purpose of an engagement letter is to:

A measure of how willing the auditor is to accept that the financial statements may be materially misstated after the audit is completed and an unqualified opinion has been issued is the:

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Quiz 1 Set 3

1.      An accountant:

2.      The Sarbanes-Oxley Act applies to which of the following companies?

3.      A correct relationship among the auditor, the client, and the external users is:

4.      Which of the following is considered audit evidence?

5.      The most common way for users to obtain reliable information is to:

6.      Any service that requires a CPA firm to issue a report about the reliability of an assertion that is made by another party is a(n):

7.      The three requirements for becoming a CPA include all but which of the following?

8.      ________ risk reflects the possibility that the information upon which the business decision was made was inaccurate.

9.      The use of the Certified Public Accountant title is regulated by:

10.   Which of the following is not a SysTrust Services principle as defined by the AICPA?

11.   In “auditing” financial accounting data, the primary concern is with:

12.   Recording, classifying, and summarizing economic events in a logical manner for the purpose of providing financial information for decision making is commonly called:

13.   One objective of an operational audit is to:

14.   An examination of part of an organization’s procedures and methods for the purpose of evaluating efficiency and effectiveness is what type of audit?

15.   Which of the following services provides the lowest level of assurance on a financial statement?

16.   The “Principles Underlying an Audit in Accordance with Generally Accepted Auditing Principles” provides a framework to help auditors:

17.   The form that must be completed and filed with the Securities and Exchange Commission whenever a company experiences a significant event that is of interest to public investors is the:

18.   The legal right to perform audits is granted to a CPA firm by regulation of:

19.   Assume the Public Company Accounting Oversight Board (PCAOB) identifies a violation during its inspection of a registered accounting firm. The PCAOB:

20.   The form that must be filed with the Securities and Exchange Commission whenever a company plans to issue new securities to the public is the:

21.   Within the context of quality control, the primary purpose of continuing professional education and training activities is to enable a CPA firm to provide its personnel with:

22.   Which of the following statements best describes the primary purpose of Statements on Auditing Standards?

23.   For privately held companies who is responsible for establishing auditing standards?

24.   The methods used by a CPA firm to ensure that the firm meets is professional responsibilities to clients and others is:

25.   In order to properly plan and perform an audit, an important fact for both the auditor and the client to understand is that:

26.   Statements on Standards for Accounting and Review Services are issued by the:

27.   The purpose of establishing quality control policies and procedures to accept or continue a client relationship is to:

28.   Standards issued by the Public Company Accounting Oversight Board must be followed by CPAs who audit:

29.   The Public Company Accounting Oversight Board:

30.   Statements on Auditing Standards issued by the AICPA’s Auditing Standards Board are:

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Quiz 1 Set 1

1.      An audit to determine whether an entity is following specific procedures or rules set down by some higher authority is classified as a(n):

2.      The Sarbanes-Oxley Act applies to which of the following companies?

3.      Three common types of attestation services are:

4.      ________ risk reflects the possibility that the information upon which the business decision was made was inaccurate.

5.      In “auditing” financial accounting data, the primary concern is with:

6.      The use of the Certified Public Accountant title is regulated by:

7.      Which of the following is considered audit evidence?

8.      One objective of an operational audit is to:

9.      An examination of part of an organization’s procedures and methods for the purpose of evaluating efficiency and effectiveness is what type of audit?

10.   Any service that requires a CPA firm to issue a report about the reliability of an assertion that is made by another party is a(n):

11.   Recording, classifying, and summarizing economic events in a logical manner for the purpose of providing financial information for decision making is commonly called:

12.   Which of the following services provides the lowest level of assurance on a financial statement?

13.   The most common way for users to obtain reliable information is to:

14.   An accountant:

15.   Which of the following is not a SysTrust Services principle as defined by the AICPA?

16.   The “Principles Underlying an Audit in Accordance with Generally Accepted Auditing Principles” provides a framework to help auditors:

17.   Statements on Standards for Accounting and Review Services are issued by the:

18.   Which of the following statements best describes the primary purpose of Statements on Auditing Standards?

19.   Which of the following are audit standards used in professional practice by audit firms?

20.   Standards issued by the Public Company Accounting Oversight Board must be followed by CPAs who audit:

21.   Which of the following is not one of the responsibilities of an auditor under the principles underlying an audit?

22.   Hansen Corporation’s stock is listed on a national stock exchange and registered with the Securities and Exchange Commission. Hansen’s management hires a CPA to perform an independent audit of Hansen’s financial statements. The primary objective of this audit is to provide assurance to the:

23.   Which of the following is an element of the CPA’s quality control system that should be considered in establishing its quality control policies and procedures?

24.   The organization that is responsible for providing oversight for auditors of public companies is called the ________.

25.   The Public Company Accounting Oversight Board:

26.   Assume the Public Company Accounting Oversight Board (PCAOB) identifies a violation during its inspection of a registered accounting firm. The PCAOB:

27.   When assessing the risk of material misstatements in the financial statements,

28.   The AICPA has authority to establish standards and rules in all but which of the following areas?

29.   The form that must be filed with the Securities and Exchange Commission whenever a company plans to issue new securities to the public is the:

30.   The methods used by a CPA firm to ensure that the firm meets is professional responsibilities to clients and others is:

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Quiz 1 Set 2

1.      Which of the following is considered audit evidence?

2.      Recording, classifying, and summarizing economic events in a logical manner for the purpose of providing financial information for decision making is commonly called:

3.      The three requirements for becoming a CPA include all but which of the following?

4.      An accountant:

5.      Three common types of attestation services are:

6.      Which of the following services provides the lowest level of assurance on a financial statement?

7.      An examination of part of an organization’s procedures and methods for the purpose of evaluating efficiency and effectiveness is what type of audit?

8.      An audit to determine whether an entity is following specific procedures or rules set down by some higher authority is classified as a(n):

9.      ________ risk reflects the possibility that the information upon which the business decision was made was inaccurate.

10.   The use of the Certified Public Accountant title is regulated by:

11.   A correct relationship among the auditor, the client, and the external users is:

12.   One objective of an operational audit is to:

13.   Any service that requires a CPA firm to issue a report about the reliability of an assertion that is made by another party is a(n):

14.   In “auditing” financial accounting data, the primary concern is with:

15.   The Sarbanes-Oxley Act applies to which of the following companies?

16.   The Public Company Accounting Oversight Board:

17.   Members of the Public Company Accounting Oversight Board are appointed and overseen by:

18.   Which of the following is an element of the CPA’s quality control system that should be considered in establishing its quality control policies and procedures?

19.   Within the context of quality control, the primary purpose of continuing professional education and training activities is to enable a CPA firm to provide its personnel with:

20.   The form that must be completed and filed with the Securities and Exchange Commission whenever a company experiences a significant event that is of interest to public investors is the:

21.   Which of the following statements best describes the primary purpose of Statements on Auditing Standards?

22.   To obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, the auditor must fulfill several performance responsibilities, including:

23.   The AICPA has authority to establish standards and rules in all but which of the following areas?

24.   Standards issued by the Public Company Accounting Oversight Board must be followed by CPAs who audit:

25.   In order to properly plan and perform an audit, an important fact for both the auditor and the client to understand is that:

26.   Statements on Standards for Accounting and Review Services are issued by the:

27.   The International Standards on Auditing (ISAs):

28.   The “Principles Underlying an Audit in Accordance with Generally Accepted Auditing Principles” provides a framework to help auditors:

29.   The purpose of establishing quality control policies and procedures to accept or continue a client relationship is to:

30.   Assume the Public Company Accounting Oversight Board (PCAOB) identifies a violation during its inspection of a registered accounting firm. The PCAOB:

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Quiz 2

1.      A misstatement in the financial statements can be considered material if knowledge of the misstatement will affect a decision of:

2.      As a result of management’s refusal to permit the auditor to physically examine inventory, the auditor must depart from the unqualified audit report because:

3.      A CPA may wish to emphasize specific matters regarding the financial statements even though an unqualified opinion will be issued. Normally, such explanatory information is:

4.      The standard unqualified audit report for a non-public entity must:

5.      An adverse opinion is issued when the auditor believes:

6.      The standard unqualified audit report:

7.      After the auditor determines whether any conditions exist which require a departure from a standard unqualified report, the next step in the decision process for audit reports is to:

8.      The auditor’s responsibility section of the standard unqualified audit report states that the audit is designed to:

9.      Auditing standards for public companies are established by the:

10.   The auditor’s responsibility section of the standard audit report states that the auditor is:

11.   The explanatory paragraph for a qualified opinion would:

12.   The first step to be followed when deciding the appropriate audit report in a given set of circumstances is to:

13.   If most or all users’ decisions that are based on the financial statements are likely to be significantly affected, the materiality level is:

14.   When the auditor determines that the financial statements are fairly stated, but there is a nonindependent relationship between the auditor and the client, the auditor should issue:

15.   The appropriate audit report date for a standard nonqualified audit report for a non-public entity should be the:

16.   Interpretations of the rules regarding independence allow an auditor to serve as:

17.   Which of the following is required for a firm to designate itself “Member of the American Institute of Certified Public Accountants” on its letterhead?

18.   The underlying reason for a code of professional conduct for any profession is:

19.   The AICPA’s Code of Professional Conduct requires independence for all:

20.   Ethics are:

21.   Rule 301 of the AICPA’s Code of Professional Conduct requires CPAs to maintain the confidentiality of client information. This rule would be violated if a CPA disclosed information without a client’s consent as a result of a:

22.   Which of the following represents all of the ways a CPA firm can be organized under Rule 505?

23.   Freedom from ________ means the absence of relationships that might interfere with objectivity or integrity.

24.   The AICPA’s Code of Professional Conduct states that a CPA should maintain integrity and objectivity. The term “objectivity” in the Code refers to a CPA’s ability to:

25.   A CPA firm may charge a contingent fee for:

26.   The financial interests of a CPA’s family members can affect the CPA’s independence. Which of the following parties would not be included as a “direct financial interest” of the CPA?

27.   When a member observes the profession’s technical and ethical standards and strives to continually improve her competence and quality of services, she is exercising:

28.   When determining whether independence is impaired because of an ownership interest in a client company, materiality will affect ownership:

29.   “Independence” in auditing means:

30.   The Sarbanes-Oxley Act requires a cooling off period of ________ before a member of an audit team can work for a client in a key management position?

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Quiz 2 Chp 3-4

1.      When there is a justified departure from GAAP which is considered material, the auditor should issue a(n):

2.      Under AICPA auditing standards, the primary auditor issuing the opinion on the financial statements is called the:

3.      The auditor’s responsibility section of the standard audit report states that the auditor is:

4.      The first step to be followed when deciding the appropriate audit report in a given set of circumstances is to:

5.      When a qualified or adverse opinion is issued, the qualifying paragraph is inserted:

6.      An audit of historical financial statements most commonly includes the:

7.      After the auditor determines whether any conditions exist which require a departure from a standard unqualified report, the next step in the decision process for audit reports is to:

8.      Items that materially affect the comparability of financial statements generally require disclosure in the footnotes. If the client refuses to properly disclose the item, the auditor will most likely issue:

9.      Auditing standards for public companies are established by the:

10.   The standard unqualified audit report for a non-public entity must:

11.   The auditor’s responsibility section of the standard unqualified audit report states that the audit is designed to:

12.   An adverse opinion is issued when the auditor believes:

13.   When dealing with materiality and scope limitation conditions:

14.   Whenever the client imposes restrictions on the scope of the audit, the auditor should be concerned that management may be trying to prevent discovery of misstatements. In such cases, the auditor will likely issue a:

15.   The standard unqualified audit report:

16.   The underlying reason for a code of professional conduct for any profession is:

17.   Freedom from ________ means the absence of relationships that might interfere with objectivity or integrity.

18.   A CPA firm may charge a contingent fee for:

19.   When a member observes the profession’s technical and ethical standards and strives to continually improve her competence and quality of services, she is exercising:

20.   A six-step approach is often used to resolve an ethical dilemma. The first step in this process is to:

21.   An auditor’s independence is considered impaired if the auditor has:

22.   Interpretations of the rules regarding independence allow an auditor to serve as:

23.   ________ means that a person acts according to conscience, regardless of the situation.

24.   The financial interests of a CPA’s family members can affect the CPA’s independence. Which of the following parties would not be included as a “direct financial interest” of the CPA?

25.   The AICPA’s Code of Professional Conduct requires independence for all:

26.   The members of a client’s “audit committee” should be:

27.   “Independence” in auditing means:

28.   Several months after an unqualified audit report was issued, the auditor discovers the financial statements were materially misstated. The client’s CEO agrees that there are misstatements, but refuses to correct them. She claims that “confidentiality” prevents the CPA from informing anyone. Which of the following statements is correct?

29.   In determining independence with respect to any audit engagement, the ultimate decision as to whether or not the auditor is independent must be made by the:

30.   Rule 301 of the AICPA’s Code of Professional Conduct requires CPAs to maintain the confidentiality of client information. This rule would be violated if a CPA disclosed information without a client’s consent as a result of a:

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Quiz 3 Chapter 5-6

1.      If an auditor fails to fulfill a certain requirement in the contract, they may be guilty of:

2.      Which of the following most accurately describes fraud?

3.      Which of the following auditor’s defenses usually means nonreliance on the financial statements by the user?

4.      Which of the following most accurately describes constructive fraud?

5.      The principal issue in cases involving alleged negligence is usually:

6.      In the performance of an audit, a CPA:

7.      The Foreign Corrupt Practices Act (FCPA) of 1977:

8.      Privity of contract exists between:

9.      The principal issue to be resolved in cases involving alleged negligence is usually:

10.   An individual who is not party to the contract between a CPA and the client, but who is known by both and is intended to receive certain benefits from the contract is known as:

11.   A CPA is subject to criminal liability if the CPA:

12.   To succeed in an action against the auditor, the client must be able to show that:

13.   A common way for a CPA firm to demonstrate a lack of duty to perform is by use of a(n):

14.   The assessment against a defendant of the full loss suffered by a plaintiff regardless of the extent to which other parties shared in the wrongdoing is called:

15.   Recklessness in the case of an audit is present if the auditor knew an adequate audit was not done but still issued an opinion, even though there was no intent to deceive financial statement users. This description is the legal term for:

16.   The posting and summarization audit objective is the auditor’s counterpart to management’s assertion of:

17.   The concept of reasonable assurance indicates that the auditor is:

18.   Which of the following statements is the most correct regarding errors and fraud?

19.   Which of the following is not one of the three categories of assertions?

20.   The auditor has no responsibility to plan and perform the audit to obtain reasonable assurance that misstatements, whether caused by errors or fraud, that are not ________ are detected.

21.   In certifying their annual financial statements, the CEO and CFO of a public company certify that the financial statements comply with the requirements of:

22.   Management assertions are:

23.   The responsibility for adopting sound accounting policies and maintaining adequate internal control rests with the:

24.   A questioning mindset:

25.   When an auditor knows that an illegal act has occurred, she must:

26.   The most important general ledger account included in and affecting several cycles is the:

27.   The cycle approach to auditing:

28.   The auditor’s best defense when material misstatements are not uncovered is to have conducted the audit:

29.   When dealing with laws and regulations that do not have a direct effect on the financial statements, the auditor:

30.   Which of the following is the auditor least likely to do when aware of an illegal act?

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Quiz 3 Set 1

1.      If an auditor fails to fulfill a certain requirement in the contract, they may be guilty of:

2.      The assessment against a defendant of that portion of the damage caused by the defendant’s negligence is called:

3.      In connection with the audit of financial statements, an independent auditor could be responsible for failure to detect a material fraud if:

4.      Which of the following most accurately describes constructive fraud?

5.      Which of the following auditor’s defenses usually means nonreliance on the financial statements by the user?

6.      The preferred defense in third party suits is:

7.      A broad interpretation of the rights of third-party beneficiaries holds that users that the auditor should have been able to foresee as being likely users of financial statements have the same rights as those with privity of contract. This is known as the concept of:

8.      The expectation gap:

9.      In the auditing environment, failure to meet auditing standards is often:

10.   The principal issue to be resolved in cases involving alleged negligence is usually:

11.   Privity of contract exists between:

12.   The principal issue in cases involving alleged negligence is usually:

13.   Laws that have been passed by the U.S. Congress and other governmental units are:

14.   “Absence of reasonable care that can be expected of a person in a set of circumstances” defines:

15.   The standard of due care to which the auditor is expected to adhere to in the performance of the audit is referred to as the:

16.   Which of the following is the auditor least likely to do when aware of an illegal act?

17.   The most important general ledger account included in and affecting several cycles is the:

18.   When an auditor believes that an illegal act may have occurred, the auditor should first:

19.   When an auditor knows that an illegal act has occurred, she must:

20.   Auditors accumulate evidence to:

21.   A questioning mindset:

22.   In testing for cutoff, the objective is to determine:

23.   The responsibility for adopting sound accounting policies and maintaining adequate internal control rests with the:

24.   The objective of an audit of the financial statements is an expression of an opinion on:

25.   An audit must be performed with an attitude of professional skepticism. Professional skepticism consists of two primary components: a questioning mind and:

26.   The posting and summarization audit objective is the auditor’s counterpart to management’s assertion of:

27.   Fraudulent financial reporting is most likely to be committed by whom?

28.   Which of the following is not one of the three categories of assertions?

29.   Which of the following would most likely be deemed a direct-effect illegal act?

30.   The concept of reasonable assurance indicates that the auditor is:

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Quiz 3 Set 2

1.      The Foreign Corrupt Practices Act (FCPA) of 1977:

2.      In the auditing environment, failure to meet auditing standards is often:

3.      In the performance of an audit, a CPA:

4.      The principal issue to be resolved in cases involving alleged negligence is usually:

5.      Under the laws of agency, partners of a CPA firm may be liable for the work of others on whom they rely. This would not include:

6.      “Absence of reasonable care that can be expected of a person in a set of circumstances” defines:

7.      A broad interpretation of the rights of third-party beneficiaries holds that users that the auditor should have been able to foresee as being likely users of financial statements have the same rights as those with privity of contract. This is known as the concept of:

8.      Recklessness in the case of an audit is present if the auditor knew an adequate audit was not done but still issued an opinion, even though there was no intent to deceive financial statement users. This description is the legal term for:

9.      In an action against a CPA in a jurisdiction that follows the Ultramares doctrine, lack of privity is a viable defense provided the plaintiff:

10.   If an auditor fails to fulfill a certain requirement in the contract, they may be guilty of:

11.   While the Foreign Corrupt Practices Act of 1977 remains in effect, its internal control provisions have been largely superseded by which of the following?

12.   In connection with the audit of financial statements, an independent auditor could be responsible for failure to detect a material fraud if:

13.   The principal issue in cases involving alleged negligence is usually:

14.   Fraud occurs when:

15.   Laws that have been passed by the U.S. Congress and other governmental units are:

16.   Tests of details of balances are specific audit procedures that are intended to:

17.   If the auditor believes that the financial statements are not fairly stated or is unable to reach a conclusion because of insufficient evidence, the auditor:

18.   In certifying their annual financial statements, the CEO and CFO of a public company certify that the financial statements comply with the requirements of:

19.   In testing for cutoff, the objective is to determine:

20.   The most important general ledger account included in and affecting several cycles is the:

21.   Management assertions are:

22.   The cycle approach to auditing:

23.   The responsibility for the preparation of the financial statements and the accompanying footnotes belongs to:

24.   The responsibility for adopting sound accounting policies and maintaining adequate internal control rests with the:

25.   An audit must be performed with an attitude of professional skepticism. Professional skepticism consists of two primary components: a questioning mind and:

26.   When an auditor believes that an illegal act may have occurred, the auditor should first:

27.   Which of the following assertions is described as “this assertion addresses whether all transactions that should be included in the financial statements are in fact included”?

28.   The posting and summarization audit objective is the auditor’s counterpart to management’s assertion of:

29.   Which of the following statements is the most correct regarding errors and fraud?

30.   Auditors accumulate evidence to:

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Quiz 3 Set 3

1.      Under the laws of agency, partners of a CPA firm may be liable for the work of others on whom they rely. This wouldnot include:

2.      In an action against a CPA in a jurisdiction that follows the Ultramares doctrine, lack of privity is a viable defense provided the plaintiff:

3.      An individual who is not party to the contract between a CPA and the client, but who is known by both and is intended to receive certain benefits from the contract is known as:

4.      Which of the following most accurately describes fraud?

5.      The principal issue to be resolved in cases involving alleged negligence is usually:

6.      To succeed in an action against the auditor, the client must be able to show that:

7.      The principal issue in cases involving alleged negligence is usually:

8.      While the Foreign Corrupt Practices Act of 1977 remains in effect, its internal control provisions have been largely superseded by which of the following?

9.      The laws that have been developed through court decisions are called:

10.   Which of the following auditor’s defenses usually means nonreliance on the financial statements by the user?

11.   In connection with the audit of financial statements, an independent auditor could be responsible for failure to detect a material fraud if:

12.   If an auditor fails to fulfill a certain requirement in the contract, they may be guilty of:

13.   In the auditing environment, failure to meet auditing standards is often:

14.   Recklessness in the case of an audit is present if the auditor knew an adequate audit was not done but still issued an opinion, even though there was no intent to deceive financial statement users. This description is the legal term for:

15.   In the performance of an audit, a CPA:

16.   If a client has violated federal tax laws:

17.   In testing for cutoff, the objective is to determine:

18.   The concept of reasonable assurance indicates that the auditor is:

19.   The cycle approach to auditing:

20.   Which of the following is not one of the three categories of assertions?

21.   When an auditor believes that an illegal act may have occurred, the auditor should first:

22.   The posting and summarization audit objective is the auditor’s counterpart to management’s assertion of:

23.   If the auditor believes that the financial statements are not fairly stated or is unable to reach a conclusion because of insufficient evidence, the auditor:

24.   When an auditor knows that an illegal act has occurred, she must:

25.   Which of the following assertions is described as “this assertion addresses whether all transactions that should be included in the financial statements are in fact included”?

26.   In certifying their annual financial statements, the CEO and CFO of a public company certify that the financial statements comply with the requirements of:

27.   The responsibility for the preparation of the financial statements and the accompanying footnotes belongs to:

28.   The auditor’s best defense when material misstatements are not uncovered is to have conducted the audit:

29.   An audit must be performed with an attitude of professional skepticism. Professional skepticism consists of two primary components: a questioning mind and:

30.   The responsibility for adopting sound accounting policies and maintaining adequate internal control rests with the:

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Quiz 4

1.      Auditors are ________ to document the known and likely misstatements in the financial statements under audit.

2.      To what extent do auditors typically rely on internal controls of their public company clients?

3.      Inherent risk and control risk:

4.      If planned detection risk is reduced, the amount of evidence the auditor accumulates will:

5.      Inherent risk is ________ related to detection risk and ________ related to the amount of audit evidence.

6.      As the acceptable level of detection risk increases, an auditor may change the:

7.      Auditors typically rely on internal controls of their private company clients:

8.      Amounts involving fraud are usually considered ________ important than unintentional errors of equal dollar amounts.

9.      As the risk of material misstatement increases, detection risk should:

10.   If an auditor establishes a relatively high level for materiality, then the auditor will:

11.   The scope paragraph of the standard unqualified auditor’s report states that “… the standards require that we plan and perform the audit to obtain ________ assurance about whether the financial statements are free of material misstatement.” What type of assurance is given?

12.   When allocating performance materiality:

13.   ________ misstatements are those where the auditor can determine the amount of the misstatement in the account.

14.   Auditing standards ________ that the basis used to determine the preliminary judgment about materiality be documented in the audit files.

15.   Auditors are responsible for determining whether financial statements are materially misstated, so upon discovering a material misstatement they must bring it to the attention of:

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Quiz 4 Chapter 9

1.      The preliminary judgment about materiality and the amount of audit evidence accumulated are ________ related.

2.      Auditors generally allocate the preliminary judgment about materiality to the:

3.      If an auditor establishes a relatively high level for materiality, then the auditor will:

4.      Auditors frequently refer to the terms audit assurance, overall assurance, and level of assurance to refer to ________.

5.      Auditors typically rely on internal controls of their private company clients:

6.      Why do auditors establish a preliminary judgment about materiality?

7.      Inherent risk and control risk:

8.      As the risk of material misstatement increases, detection risk should:

9.      When management has an adequate level of integrity for the auditor to accept the engagement but cannot be regarded as completely honest in all dealings, auditors normally:

10.   As the acceptable level of detection risk increases, an auditor may change the:

11.   When the auditor is attempting to determine the extent to which external users rely on a client’s financial statements, they may consider several factors except for:

12.   When auditors allocate the preliminary judgment about materiality to account balances, the materiality allocated to any given account balance is referred to as:

13.   If it is probable that the judgment of a reasonable person will be changed or influenced by the omission or misstatement of information, then that information is, by definition of FASB Statement No. 2:

14.   When taken together, the concepts of risk and materiality in auditing:

15.   Inherent risk is ________ related to detection risk and ________ related to the amount of audit evidence.

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Quiz 5

1.      The employee in charge of authorizing credit to the company’s customers does not fully understand the concept of credit risk. This lack of knowledge would constitute:

2.      When assessing whether the financial statements are auditable, the auditor must consider:

3.      Which of the following deal with ongoing or periodic assessment of the quality of internal control by management?

4.      Audit evidence regarding the separation of duties is normally best obtained by:

5.      Management must disclose material weaknesses in internal control in its audit report:

6.      Proper segregation of functional responsibilities calls for separation of:

7.      When considering internal controls, an important point to consider is that:

8.      Which of the following deficiency exists if a necessary control is missing or not properly formulated?

9.      Internal controls normally include procedures designed to provide reasonable assurance that:

10.   In performing the audit of internal control over financial reporting the auditor emphasizes internal control over class of transactions because:

11.   An audit procedure that would most likely be used by an auditor in performing tests of control procedures in which the segregation of functions and that leaves no “audit” trail is:

12.   Narratives, flowcharts, and internal control questionnaires are three common methods of:

13.   Which of the following is not one of the three primary objectives of effective internal control?

14.   The auditors primary purpose in auditing the client’s system of internal control over financial reporting is:

15.   Reasonable assurance allows for:

16.   Misappropriation of assets is normally perpetrated by:

17.   Financial statement manipulation risk is arguably present for all companies’ financial statements. However, the risk is elevated for companies that:

18.   Two of the most useful warning signals that can indicate that revenue fraud is occurring are:

19.   Analytical procedures can be very effective in detecting inventory fraud. Which of the following analytical procedures would not be useful in detecting fraud?

20.   When assessing the risk for fraud, the auditor must be cognizant of the fact that:

21.   Which of the following is a factor that relates to incentives or pressures to commit fraudulent financial reporting?

22.   Which of the following is least likely to uncover fraud?

23.   Who is most likely to perpetrate fraudulent financial reporting?

24.   In the fraud triangle, fraudulent financial reporting and misappropriation of assets:

25.   Fraud is more prevalent in smaller businesses and not-for-profit organizations because it is more difficult for them to maintain:

26.   Companies may intentionally understate earnings when income is high to create ________ that may be used in future years to increase earnings.

27.   Most cases of fraudulent reporting involve:

28.   Which of the following questions is the auditor notrequired to ask company management when assessing fraud risk?

29.   Which of the following parties is responsible for implementing internal controls to minimize the likelihood of fraud?

30.   Which of the following best defines fraud in a financial statement auditing context?

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Quiz 5 Chapters 10-11

1.      Which of the following components of the control environment define the existing lines of responsibility and authority?

2.      Which of the following is responsible for establishing a private company’s internal control?

3.      Reasonable assurance allows for:

4.      Narratives, flowcharts, and internal control questionnaires are three common methods of:

5.      Internal controls normally include procedures designed to provide reasonable assurance that:

6.      Proper segregation of functional responsibilities calls for separation of:

7.      When the auditor attempts to understand the operation of the accounting system by tracing a few transactions through the accounting system, the auditor is said to be:

8.      The PCAOB places responsibility for the reliability of internal controls over the financial reporting process on:

9.      When determining what type of report to issue on internal control under Section 404:

10.   Internal controls:

11.   Two key concepts that underlie management’s design and implementation of internal control are:

12.   The employee in charge of authorizing credit to the company’s customers does not fully understand the concept of credit risk. This lack of knowledge would constitute:

13.   A five-step approach can be used to identify deficiencies, significant deficiencies, and material weaknesses. The first step in this approach is:

14.   Internal controls can never be regarded as completely effective. Even if company personnel could design an ideal system, its effectiveness depends on the:

15.   Sarbanes-Oxley requires management to issue an internal control report that includes two specific items. Which of the following is one of these two requirements?

16.   A company is concerned with the theft of cash after the sale has been recorded. One way in which fraudsters conceal the theft is by a process called “lapping.” Which of the following best describes lapping?

17.   Fraud is more prevalent in smaller businesses and not-for-profit organizations because it is more difficult for them to maintain:

18.   Fictitious revenues:

19.   Misappropriation of assets is normally perpetrated by:

20.   When assessing the risk for fraud, the auditor must be cognizant of the fact that:

21.   Two of the most useful warning signals that can indicate that revenue fraud is occurring are:

22.   Analytical procedures can be very effective in detecting inventory fraud. Which of the following analytical procedures would not be useful in detecting fraud?

23.   Most cases of fraudulent reporting involve:

24.   Which of the following is a factor that relates to attitudes or rationalization to commit fraudulent financial reporting?

25.   Which of the following parties is responsible for implementing internal controls to minimize the likelihood of fraud?

26.   Company management is often under pressure to increase revenue and/or net income. One approach is to use a “bill and hold” arrangement. This is an example of which of the following?

27.   Which of the following is not a factor that relates to opportunities to misappropriate assets?

28.   Who is most likely to perpetrate fraudulent financial reporting?

29.   Which of the following is a factor that relates to incentives to misappropriate assets?

30.   ________ is fraud that involves theft of an entity’s assets.

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Quiz 5 week 7

1.      Which of the following deficiency exists if a necessary control is missing or not properly formulated?

2.      An audit procedure that would most likely be used by an auditor in performing tests of control procedures in which the segregation of functions and that leaves no “audit” trail is:

3.      Which of the following is responsible for establishing a private company’s internal control?

4.      Internal controls normally include procedures designed to provide reasonable assurance that:

5.      Internal controls:

6.      Narratives, flowcharts, and internal control questionnaires are three common methods of:

7.      Which of the following activities would be least likely to strengthen a company’s internal control?

8.      When the auditor attempts to understand the operation of the accounting system by tracing a few transactions through the accounting system, the auditor is said to be:

9.      In performing the audit of internal control over financial reporting the auditor emphasizes internal control over class of transactions because:

10.   The PCAOB places responsibility for the reliability of internal controls over the financial reporting process on:

11.   When considering internal controls, an important point to consider is that:

12.   Proper segregation of functional responsibilities calls for separation of:

13.   Management must disclose material weaknesses in internal control in its audit report:

14.   A five-step approach can be used to identify deficiencies, significant deficiencies, and material weaknesses. The first step in this approach is:

15.   When determining what type of report to issue on internal control under Section 404:

16.   Analytical procedures can be very effective in detecting inventory fraud. Which of the following analytical procedures would not be useful in detecting fraud?

17.   Which of the following best defines fraud in a financial statement auditing context?

18.   Which of the following would the auditor be most concerned about regarding a heightened risk of intentional misstatement?

19.   Which of the following is least likely to uncover fraud?

20.   Which party has the primary responsibility to oversee an organization’s financial reporting and internal control process?

21.   ________ is fraud that involves theft of an entity’s assets.

22.   Who is most likely to perpetrate fraudulent financial reporting?

23.   A company is concerned with the theft of cash after the sale has been recorded. One way in which fraudsters conceal the theft is by a process called “lapping.” Which of the following best describes lapping?

24.   Which of the following is a factor that relates to incentives or pressures to commit fraudulent financial reporting?

25.   Fraud awareness training should be:

26.   Fraud is more prevalent in smaller businesses and not-for-profit organizations because it is more difficult for them to maintain:

27.   Which of the following questions is the auditor not required to ask company management when assessing fraud risk?

28.   Auditors need to exhibit professional skepticism when auditing a client. This auditing standard is best expressed by which of the following?

29.   Which of the following is a factor that relates to incentives to misappropriate assets?

30.   Financial statement manipulation risk is arguably present for all companies’ financial statements. However, the risk is elevated for companies that:

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Quiz 6

1.      An example of a physical control is:

2.      The auditor’s objective in determining whether the client’s automated controls can correctly handle valid and invalid transactions as they arise is accomplished through the:

3.      The audit approach in which the auditor runs his or her own program on a controlled basis to verify the client’s data recorded in a machine language is:

4.      A database management system:

5.      Which of the following is a component of general controls?

6.      When the client changes the computer software:

7.      Which of the following controls prevent and detect errors while transaction data are processed?

8.      Which of the following tests determines that every field in a record has been completed?

9.      Security controls should require that users enter a(n) ________ before being allowed access to software and other related data files.

10.   General controls may include firewalls which are used to protect from:

11.   In an IT system, automated equipment controls or hardware controls are designed to:

12.   Controls which are built in by the manufacturer to detect equipment failure are called:

13.   A ________ total represents the summary total of codes from all records in a batch that do not represent a meaningful total.

14.   A ________ is responsible for controlling the use of computer programs, transaction files and other computer records and documentation and releases them to the operators only when authorized.

15.   Which of the following computer-assisted auditing techniques inserts an audit module in the client’s application system to identify specific types of transactions?

16.   Tests of controls are directed toward the control’s:

17.   Analytical procedures must be performed in:

18.   Risk assessment procedures are performed by auditors during an audit in order to:

19.   If no material differences are found using analytical procedures and the auditor concludes that misstatements are not likely to have occurred:

20.   The primary emphasis in most tests of details of balances is on the:

21.   The document that details the specific audit procedures for each type of test is the:

22.   When the auditor has completed the tests of details of balances and enters phase 4 of the audit process, she must still perform audit procedures for which of the following?

23.   The reliance the auditor places on substantive tests in relation to the reliance placed on internal control varies in a relationship that is ordinarily:

24.   The auditor would design which of the following audit tests to detect possible monetary errors in the financial statements?

25.   In the context of an audit of financial statements, substantive tests are audit procedures that:

26.   Which of the following audit tests is usually the least costly to perform?

27.   You are auditing Rodgers and Company. After performing substantive analytical procedures you conclude that, for the accounts tested, the client’s balance appears reasonable. This may indicate that:

28.   The purpose of tests of controls is to provide reasonable assurance that the:

29.   At what point in the audit process are tests of details most appropriately designed?

30.   If tests of controls support the control risk assessment, then ________ in the audit risk model is increased.

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Quiz 6

Week 8 Quiz 6 ACC 403

Question 1

________ is not a risk specific to the IT environments.

Question 2

The approach to auditing where the auditor does not test automated controls to reduce assessed control risk is called:Question 3

When the client changes the computer software:

Question 4

Which of the following computer-assisted auditing techniques inserts an audit module in the client’s application system to identify specific types of transactions?

Question 5

The auditor’s objective in determining whether the client’s automated controls can correctly handle valid and invalid transactions as they arise is accomplished through the:

Question 6

Output controls need to be designed for which of the following data integrity objectives?

Question 7

Which of the following is a component of general controls?

Question 8

Controls which are built in by the manufacturer to detect equipment failure are called:

Question 9

Controls that are designed for each software application and are intended to help a company satisfy the transaction-related audit objectives are:

Question 10

In an IT system, automated equipment controls or hardware controls are designed to:

Question 11

General controls may include firewalls which are used to protect from:

Question 12

One of the unique risks of protecting hardware and data is:

Question 13

Security controls should require that users enter a(n) ________ before being allowed access to software and other related data files.

Question 14

The most important output control is:

Question 15

Controls which are designed to assure that the information processed by the computer is authorized, complete, and accurate are called:

Question 16

When the auditor has completed the tests of details of balances and enters phase 4 of the audit process, she must still perform audit procedures for which of the following?

Question 17

Analytical procedures:

Question 18

Risk assessment procedures are performed by auditors during an audit in order to:

Question 19

In order to promote audit efficiency the auditor considers cost in selecting audit tests to perform. Which of the following audit tests would be the most costly?

Question 20

The reliance the auditor places on substantive tests in relation to the reliance placed on internal control varies in a relationship that is ordinarily:

Question 21

Collectively, procedures performed to obtain an understanding of the entity and its environment, including internal controls, represent the auditor’s:

Question 22

A system walkthrough is primarily used to help the auditor:

Question 23

In the context of an audit of financial statements, substantive tests are audit procedures that:

Question 24

The auditor would design which of the following audit tests to detect possible monetary errors in the financial statements?

Question 25

Presentation and disclosure related audit objectives would be performed in which phase of the audit process?

Question 26

You are auditing Rodgers and Company. After performing substantive analytical procedures you conclude that, for the accounts tested, the client’s balance appears reasonable. This may indicate that:

Question 27

Which of the following further audit procedures are used to determine whether all six transaction-related audit objectives have been achieved for each class of transactions?

Question 28

Analytical procedures must be performed in:

Question 29

The primary emphasis in most tests of details of balances is on the:

Question 30

Management implements internal controls to ensure that all required footnote disclosures are accurate. Auditors tests those controls to provide evidence supporting the ________ presentation.

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Quiz 6 Set 2

1.      An internal control deficiency occurs when computer personnel:

2.      The most important output control is:

3.      When the client changes the computer software:

4.      A ________ is responsible for controlling the use of computer programs, transaction files and other computer records and documentation and releases them to the operators only when authorized.

5.      The approach to auditing where the auditor does not test automated controls to reduce assessed control risk is called:

6.      In an IT system, automated equipment controls or hardware controls are designed to:

7.      Which of the following tests determines that every field in a record has been completed?

8.      The audit approach in which the auditor runs his or her own program on a controlled basis to verify the client’s data recorded in a machine language is:

9.      One of the unique risks of protecting hardware and data is:

10.   A database management system:

11.   Auditors:

12.   A control that relates to all parts of the IT system is called a(n):

13.   Controls which are built in by the manufacturer to detect equipment failure are called:

14.   Which of the following is a component of general controls?

15.   Programmers should be allowed access to:

16.   A system walkthrough is primarily used to help the auditor:

17.   The reliance the auditor places on substantive tests in relation to the reliance placed on internal control varies in a relationship that is ordinarily:

18.   Collectively, procedures performed to obtain an understanding of the entity and its environment, including internal controls, represent the auditor’s:

19.   The document that details the specific audit procedures for each type of test is the:

20.   If tests of controls support the control risk assessment, then ________ in the audit risk model is increased.

21.   Which of the following audit tests is usually the least costly to perform?

22.   If no material differences are found using analytical procedures and the auditor concludes that misstatements are not likely to have occurred:

23.   Transaction related audit objectives would most likely be performed in which phase of the audit process?

24.   Many auditors perform extensive analytical procedures on audits because:

25.   Tests of controls are directed toward the control’s:

26.   The purpose of tests of controls is to provide reasonable assurance that the:

27.   The primary emphasis in most tests of details of balances is on the:

28.   Analytical procedures must be performed in:

29.   Which of the following further audit procedures are used to determine whether all six transaction-related audit objectives have been achieved for each class of transactions?

30.   When the auditor has completed the tests of details of balances and enters phase 4 of the audit process, she must still perform audit procedures for which of the following?

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Quiz 6 Set 3

1.      A database management system:

2.      A ________ is responsible for controlling the use of computer programs, transaction files and other computer records and documentation and releases them to the operators only when authorized.

3.      An internal control deficiency occurs when computer personnel:

4.      The continued integration of IT in accounting systems can impact a company by:

5.      Output controls need to be designed for which of the following data integrity objectives?

6.      Which of the following is a component of general controls?

7.      The most important output control is:

8.      Auditors should evaluate which of the following before evaluating application controls because of the potential for pervasive effects?

9.      Which of the following controls prevent and detect errors while transaction data are processed?

10.   Programmers should be allowed access to:

11.   Controls which are built in by the manufacturer to detect equipment failure are called:

12.   Which of the following computer-assisted auditing techniques inserts an audit module in the client’s application system to identify specific types of transactions?

13.   In an IT system, automated equipment controls or hardware controls are designed to:

14.   General controls may include firewalls which are used to protect from:

15.   Auditors:

16.   Risk assessment procedures are performed by auditors during an audit in order to:

17.   At what point in the audit process are tests of details most appropriately designed?

18.   The purpose of tests of controls is to provide reasonable assurance that the:

19.   An increased extent of tests of controls is most likely to occur when:

20.   In the context of an audit of financial statements, substantive tests are audit procedures that:

21.   Transaction related audit objectives would most likely be performed in which phase of the audit process?

22.   The auditor would design which of the following audit tests to detect possible monetary errors in the financial statements?

23.   The document that details the specific audit procedures for each type of test is the:

24.   In order to promote audit efficiency the auditor considers cost in selecting audit tests to perform. Which of the following audit tests would be the most costly?

25.   A system walkthrough is primarily used to help the auditor:

26.   A procedure designed to test for monetary misstatements directly affecting the correctness of financial statement balances is a:

27.   Collectively, procedures performed to obtain an understanding of the entity and its environment, including internal controls, represent the auditor’s:

28.   Management implements internal controls to ensure that all required footnote disclosures are accurate. Auditors tests those controls to provide evidence supporting the ________ presentation.

29.   Which of the following is ordinarily designed to detect material dollar errors on the financial statements?

30.   Tests of controls are directed toward the control’s:

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Quiz 6 Set 4

1.      Which of the following is a component of general controls?

2.      Programmers should be allowed access to:

3.      An example of a physical control is:

4.      Old and new systems operating simultaneously in all locations is a test approach known as:

5.      An internal control deficiency occurs when computer personnel:

6.      A ________ total represents the summary total of codes from all records in a batch that do not represent a meaningful total.

7.      Which of the following describes the process of implementing a new system in one part of the organization, while other locations continue to use the current system?

8.      A database management system:

9.      The continued integration of IT in accounting systems can impact a company by:

10.   A control that relates to all parts of the IT system is called a(n):

11.   Controls that are designed for each software application and are intended to help a company satisfy the transaction-related audit objectives are:

12.   General controls may include firewalls which are used to protect from:

13.   Which of the following computer-assisted auditing techniques inserts an audit module in the client’s application system to identify specific types of transactions?

14.   The audit approach in which the auditor runs his or her own program on a controlled basis to verify the client’s data recorded in a machine language is:

15.   ________ is not a risk specific to the IT environments.

16.   An increased extent of tests of controls is most likely to occur when:

17.   Analytical procedures must be performed in:

18.   Which of the following audit tests is usually the least costly to perform?

19.   When the auditor has completed the tests of details of balances and enters phase 4 of the audit process, she must still perform audit procedures for which of the following?

20.   Management implements internal controls to ensure that all required footnote disclosures are accurate. Auditors tests those controls to provide evidence supporting the ________ presentation.

21.   If tests of controls support the control risk assessment, then ________ in the audit risk model is increased.

22.   In order to promote audit efficiency the auditor considers cost in selecting audit tests to perform. Which of the following audit tests would be the most costly?

23.   Which of the following procedures would most likely be performed in response to the auditor’s assessment of the risk of monetary misstatements in the financial statements?

24.   At what point in the audit process are tests of details most appropriately designed?

25.   If no material differences are found using analytical procedures and the auditor concludes that misstatements are not likely to have occurred:

26.   Transaction related audit objectives would most likely be performed in which phase of the audit process?

27.   The reliance the auditor places on substantive tests in relation to the reliance placed on internal control varies in a relationship that is ordinarily:

28.   The document that details the specific audit procedures for each type of test is the:

29.   An exception or deficiency found in a test of controls:

30.   Which of the following is ordinarily designed to detect material dollar errors on the financial statements?

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Quiz 7

1.      The document that accompanies the customer’s payment is the:

2.      Before goods are shipped on account, a properly authorized person must:

3.      The document that requires adjustments to the customers subsidiary ledger account is the:

4.      To test for recorded sales for which there were no actual shipments, the auditor vouches from the:

5.      The total of the individual account balances in the accounts receivable subsidiary ledger should equal the:

6.      Credit memos are normally issued to:

7.      Which of the following is an account that is not affected by the sales and collection cycle?

8.      The audit procedure referred to as proof of cash receipts is particularly useful to test:

9.      In the accounts receivable subsidiary ledger the length of time the account has been due can be useful to the client and the auditor in preparing the:

10.   A ________ is a document that indicates a request for merchandise by a customer.

11.   The document used to indicate to the customer the amount of a sale and payment due date is the:

12.   Which of the following is not a business function within the “Sales” class of transactions?

13.   A document that initiates shipment of goods and indicates the description of the merchandise, the quantity shipped, and customer name and address is the:

14.   The auditor’s objectives for the sales and cash collections activities when the client is primarily an e-commerce business as compared to a “bricks and mortar” business are:

15.   Generally, when is the earliest point in the sales and collection cycle in which revenue can be recognized?

16.   When the computed upper exception rate is greater than the tolerable exception rate, it is necessary for the auditor to take specific action. Which of the following courses of action would be most difficult to justify?

17.   The advantage of systematic sample selection is that:

18.   If the auditor decides to assess control risk at the moderate level in a private company audit, when in previous years the auditor set control risk at the maximum level, then tests of controls for the current year would be:

19.   In systematic sample selection, the population size is divided by the number of sample items desired in order to determine the:

20.   Which of the following is the risk that audit tests will not uncover existing exceptions in a sample?

21.   When the auditor decides to select less than 100 percent of the population for testing, the auditor is said to use:

22.   Which of the following occurrences would be least likely to warrant further audit attention for the auditor?

23.   When auditors wish to evaluate a sample statistically, an acceptable selection method is:

24.   A sample in which the characteristics of the sample are the same as those of the population is a(n):

25.   Simple random sampling:

26.   The sample exception rate equals:

27.   A sample in which every possible combination of items in the population has an equal chance of constituting the sample is a:

28.   Rodgers CPA believes that the rate of client billing errors is 4% and has established a tolerable deviation rate of 6%. In auditing client invoices Rodgers should use:

29.   To determine if a sample is truly representative of the population, an auditor would be required to:

30.   The process which requires the calculation of an interval and then selects the items based on the size of the interval is:

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Quiz 7 Chapter 14 -15

1.      The document that accompanies the customer’s payment is the:

2.      Before goods are shipped on account, a properly authorized person must:

3.      Credit memos are normally issued to:

4.      Who is generally responsible for opening receipts when a company uses a lockbox to speed the handling of cash receipts?

5.      The auditor’s objectives for the sales and cash collections activities when the client is primarily an e-commerce business as compared to a “bricks and mortar” business are:

6.      A document prepared to initiate shipment of the goods sold by an independent shipper is the:

7.      What event initiates a transaction in the sales and collection cycle?

8.      To test for recorded sales for which there were no actual shipments, the auditor vouches from the:

9.      Generally, when is the earliest point in the sales and collection cycle in which revenue can be recognized?

10.   A document sent to each customer showing his or her beginning accounts receivable balance and the amount and date of each sale, cash payment received, any debit or credit memo issued, and the ending balance is the:

11.   What critical event must take place before goods can be shipped in order to assure payment can be reasonably expected?

12.   Most companies recognize sales revenue when:

13.   Which of the following is not a business function within the “Sales” class of transactions?

14.   When an employee who is authorized to make customer entries in the accounts receivable subsidiary ledger, purposefully enters cash received into the wrong customer’s account that employee may be suspected of:

15.   The audit procedure referred to as proof of cash receipts is particularly useful to test:

16.   In systematic sample selection, the population size is divided by the number of sample items desired in order to determine the:

17.   Which of the following is the risk that audit tests will not uncover existing exceptions in a sample?

18.   There are three phases in both statistical and nonstatistical sampling. The first phase is to:

19.   Attributes sampling is based on the ________ distribution, in which each possible sample in the population has one of two possible values, such as yes or no.

20.   The acceptable risk of overreliance:

21.   When the auditor decides to select less than 100 percent of the population for testing, the auditor is said to use:

22.   Which of the following occurrences would be least likely to warrant further audit attention for the auditor?

23.   Which of the following is the risk that an auditor will reach an incorrect conclusion because a sample is not representative of the population?

24.   When auditors wish to evaluate a sample statistically, an acceptable selection method is:

25.   When the auditor goes through a population and selects items using nonprobabilistic selection methods, without regard to their size, source, or other distinguishing characteristics, it is called:

26.   If the auditor decides to assess control risk at the moderate level in a private company audit, when in previous years the auditor set control risk at the maximum level, then tests of controls for the current year would be:

27.   The most serious shortcoming of the haphazard sample selection method is:

28.   The exception rate the auditor will permit in the population and still be willing to reduce the assessed level of control risk is called the:

29.   To determine if a sample is truly representative of the population, an auditor would be required to:

30.   Attributes sampling would be an appropriate method to use on which one of the following procedures in an audit program?

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Quiz 7 Set 2

1.      The auditor’s objectives for the sales and cash collections activities when the client is primarily an e-commerce business as compared to a “bricks and mortar” business are:

2.      A ________ is a document that is matched with the customer order to assure that the correct quantity and type of goods are shipped.

3.      What event initiates a transaction in the sales and collection cycle?

4.      Who is generally responsible for opening receipts when a company uses a lockbox to speed the handling of cash receipts?

5.      Which of the following is not one of the five classes of transactions included in the sales and collection cycle?

6.      A document sent to each customer showing his or her beginning accounts receivable balance and the amount and date of each sale, cash payment received, any debit or credit memo issued, and the ending balance is the:

7.      Which of the following is an account that is not affected by the sales and collection cycle?

8.      Some companies have customers send payments directly to an address maintained by a bank. This is called a(n) ________ system.

9.      To test for recorded sales for which there were no actual shipments, the auditor vouches from the:

10.   Which of the following is not a business function within the “Sales” class of transactions?

11.   The document used to indicate to the customer the amount of a sale and payment due date is the:

12.   A document prepared to initiate shipment of the goods sold by an independent shipper is the:

13.   The total of the individual account balances in the accounts receivable subsidiary ledger should equal the:

14.   Most companies recognize sales revenue when:

15.   The ________ is a contract between a carrier (e.g., a trucking company) and the seller of goods that dictates the details surrounding the shipment of goods.

16.   Attributes sampling would be an appropriate method to use on which one of the following procedures in an audit program?

17.   When using statistical sampling, the auditor would most likely require a smaller sample if the:

18.   The exception rate the auditor will permit in the population and still be willing to reduce the assessed level of control risk is called the:

19.   Which of the following occurrences would be least likely to warrant further audit attention for the auditor?

20.   Auditors often use the ________ to determine the estimated population exception rate.

21.   Which of the following is the risk that an auditor will reach an incorrect conclusion because a sample is not representative of the population?

22.   The most serious shortcoming of the haphazard sample selection method is:

23.   When auditors wish to evaluate a sample statistically, an acceptable selection method is:

24.   To determine if a sample is truly representative of the population, an auditor would be required to:

25.   The process which requires the calculation of an interval and then selects the items based on the size of the interval is:

26.   Simple random sampling:

27.   A sample in which the characteristics of the sample are the same as those of the population is a(n):

28.   If the auditor decides to assess control risk at the moderate level in a private company audit, when in previous years the auditor set control risk at the maximum level, then tests of controls for the current year would be:

29.   There are three phases in both statistical and nonstatistical sampling. The first phase is to:

30.   Rodgers CPA believes that the rate of client billing errors is 4% and has established a tolerable deviation rate of 6%. In auditing client invoices Rodgers should use:

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Quiz 8

1.      Which of the following most likely would be detected by a review of a client’s sales cutoff?

2.      Cutoff misstatements occur:

3.      Analytical procedures:

4.      Most tests of accounts receivable are based on what schedule, file, or listing?

5.      The most important test of details of balances to determine the existence of recorded accounts receivable is:

6.      When do most companies record sales returns and allowances?

7.      An auditor is performing a credit analysis of customers with balances over 60 days due. She is most likely obtaining evidence for which audit related objective?

8.      When designing tests of details of balances, an important point to remember is:

9.      Audit procedures designed to uncover credit sales made after the client’s fiscal year end that relate to the current year being audited provide evidence for which of the following audit objective?

10.   A positive confirmation is more reliable evidence than a negative confirmation because:

11.   Which of the following audit procedure would normally be included in the audit plan when auditing the allowance for doubtful accounts?

12.   The net realizable value of accounts receivable is equal to:

13.   Communication addressed to the debtor requesting him or her to confirm whether the balance as stated on the communication is correct or incorrect is a:

14.   An auditor selects a sample from the file of shipping documents to determine whether invoices were prepared. This test is to satisfy the audit objective of:

15.   Confirmation of accounts receivable selected from the trial balance is the most common test of details of balances for the ________ of accounts receivable.

16.   Monetary unit sampling is not particularly effective at detecting:

17.   The allowance for sampling risk when no misstatements are found in the sample is:

18.   While performing a substantive test of details during an audit, the auditor determined that the sample results supported the conclusion that the recorded account balance was not materially misstated. It was, in fact, materially misstated. This situation illustrates the risk of:

19.   In monetary unit sampling, a sampling interval of 900 means that:

20.   If an auditor desires a greater level of assurance in auditing a balance, the acceptable risk of incorrect acceptance:

21.   When the sample selection is done using probability proportional to size sample selection (PPS):

22.   The word below that best explains the relationship between required sample size and the acceptable risk of incorrect acceptance is:

23.   Which of the following is not a type of statistical method that provides results in dollar terms?

24.   The risk the auditor is willing to take of accepting a balance as correct when the true misstatement in the balance under audit is greater than the tolerable misstatement is:

25.   When selecting a sample size for substantive tests of balances which factor, other factors being equal, would result in a larger sample?

26.   If acceptable audit risk is increased, acceptable risk of incorrect acceptance should be:

27.   The most commonly used method of statistical sampling for tests of details of balances is:

28.   In monetary unit sampling, the relationship between tolerable misstatement size and required sample size is:

29.   If no exceptions were found in the substantive tests of transactions:

30.   The client’s trial balance has a balance of $410,000 for merchandise inventory. As the auditor you are willing to accept a balance that is within $20,000 of either side of the recorded balance. You compute a 95% confidence interval of $395,000 to $425,000. You could therefore:

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 quiz 8

1.      Which of the following most likely would be detected by a review of a client’s sales cutoff?

2.      Cutoff misstatements occur:

3.      Analytical procedures:

4.      Most tests of accounts receivable are based on what schedule, file, or listing?

5.      The most important test of details of balances to determine the existence of recorded accounts receivable is:

6.      When do most companies record sales returns and allowances?

7.      An auditor is performing a credit analysis of customers with balances over 60 days due. She is most likely obtaining evidence for which audit related objective?

8.      When designing tests of details of balances, an important point to remember is:

9.      Audit procedures designed to uncover credit sales made after the client’s fiscal year end that relate to the current year being audited provide evidence for which of the following audit objective?

10.   A positive confirmation is more reliable evidence than a negative confirmation because:

11.   Which of the following audit procedure would normally be included in the audit plan when auditing the allowance for doubtful accounts?

12.   The net realizable value of accounts receivable is equal to:

13.   Communication addressed to the debtor requesting him or her to confirm whether the balance as stated on the communication is correct or incorrect is a:

14.   An auditor selects a sample from the file of shipping documents to determine whether invoices were prepared. This test is to satisfy the audit objective of:

15.   Confirmation of accounts receivable selected from the trial balance is the most common test of details of balances for the ________ of accounts receivable.

16.   Monetary unit sampling is not particularly effective at detecting:

17.   The allowance for sampling risk when no misstatements are found in the sample is:

18.   While performing a substantive test of details during an audit, the auditor determined that the sample results supported the conclusion that the recorded account balance was not materially misstated. It was, in fact, materially misstated. This situation illustrates the risk of:

19.   In monetary unit sampling, a sampling interval of 900 means that:

20.   If an auditor desires a greater level of assurance in auditing a balance, the acceptable risk of incorrect acceptance:

21.   When the sample selection is done using probability proportional to size sample selection (PPS):

22.   The word below that best explains the relationship between required sample size and the acceptable risk of incorrect acceptance is:

23.   Which of the following is not a type of statistical method that provides results in dollar terms?

24.   The risk the auditor is willing to take of accepting a balance as correct when the true misstatement in the balance under audit is greater than the tolerable misstatement is:

25.   When selecting a sample size for substantive tests of balances which factor, other factors being equal, would result in a larger sample?

26.   If acceptable audit risk is increased, acceptable risk of incorrect acceptance should be:

27.   The most commonly used method of statistical sampling for tests of details of balances is:

28.   In monetary unit sampling, the relationship between tolerable misstatement size and required sample size is:

29.   If no exceptions were found in the substantive tests of transactions:

30.   The client’s trial balance has a balance of $410,000 for merchandise inventory. As the auditor you are willing to accept a balance that is within $20,000 of either side of the recorded balance. You compute a 95% confidence interval of $395,000 to $425,000. You could therefore:

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Quiz 8 Chapters 16-17

1.      A listing of the balances in the accounts receivable master file at the balance sheet date, by total balance outstanding and by the amount of time the component parts have been outstanding, is the:

2.      Which of the following is the principle “weakness” of using negative confirmations for your tests of details of balances for accounts receivable?

3.      If the client’s internal control for recording sales returns and allowances is evaluated as ineffective:

4.      The net realizable value of accounts receivable is equal to:

5.      Which of the following audit procedure would normally be included in the audit plan when auditing the allowance for doubtful accounts?

6.      For most audits, a proper cash receipts cutoff is less important than the sales cutoff because the improper cutoff of cash:

7.      A positive confirmation is more reliable evidence than a negative confirmation because:

8.      The two primary classes of transactions in the sales and collection cycle are:

9.      Most tests of accounts receivable are based on what schedule, file, or listing?

10.   An auditor is performing a credit analysis of customers with balances over 60 days due. She is most likely obtaining evidence for which audit related objective?

11.   Which of the following is likely to be determined first when performing tests of details for accounts receivable?

12.   For cash receipts, the occurrence transaction-related audit objective affects which of the following balance-related audit objective?

13.   The most effective audit evidence gathered for accounts receivable is the:

14.   Confirmation of accounts receivable selected from the trial balance is the most common test of details of balances for the ________ of accounts receivable.

15.   Communication addressed to the debtor requesting him or her to confirm whether the balance as stated on the communication is correct or incorrect is a:

16.   The risk the auditor is willing to take of accepting a balance as correct when the true misstatement in the balance under audit is greater than the tolerable misstatement is:

17.   The allowance for sampling risk when no misstatements are found in the sample is:

18.   The client’s trial balance has a balance of $410,000 for merchandise inventory. As the auditor you are willing to accept a balance that is within $20,000 of either side of the recorded balance. You compute a 95% confidence interval of $395,000 to $425,000. You could therefore:

19.   One of the steps involved in planning the sample for the tests of details of balances is to:

20.   You are auditing Nelson and Company and determined that the sample results support a conclusion that the account is materially misstated, when in fact it was not misstated. This illustrates the risk of:

21.   In monetary unit sampling, a sampling interval of 900 means that:

22.   The most commonly used method of statistical sampling for tests of details of balances is:

23.   If the population is not considered acceptable, one step the auditor is likely to take is to:

24.   The word below that best explains the relationship between required sample size and the acceptable risk of incorrect acceptance is:

25.   As the amount of misstatements expected in the population approaches tolerable misstatement, the planned sample size will:

26.   If an auditor concludes that internal controls are likely to be effective, the preliminary assessment of control risk can be reduced, leading to which of the following impacts on the acceptable risk of incorrect acceptance?

27.   When errors are found in a sample, auditors in practice generally make the assumption:

28.   The appropriate assumption to make regarding the overall percent of error in those population items containing an error is:

29.   Monetary unit sampling is not particularly effective at detecting:

30.   The method used to measure the estimated total error amount in a population when there is both a recorded value and an audited value for each item in the sample is:

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Quiz 8 Set 1

1.      Which of the following is likely to be determined first when performing tests of details for accounts receivable?

2.      If the client’s internal control for recording sales returns and allowances is evaluated as ineffective:

3.      The understatement of sales and accounts receivable is best uncovered by:

4.      For most audits, a proper cash receipts cutoff is less important than the sales cutoff because the improper cutoff of cash:

5.      Which of the following most likely would be detected by a review of a client’s sales cutoff?

6.      Which of the following audit procedure would normally be included in the audit plan when auditing the allowance for doubtful accounts?

7.      When designing tests of details of balances, an important point to remember is:

8.      An auditor selects a sample from the file of shipping documents to determine whether invoices were prepared. This test is to satisfy the audit objective of:

9.      Because of its central role in auditing of accounts receivable, which of the following would normally be one of the first items tested?

10.   Most tests of accounts receivable are based on what schedule, file, or listing?

11.   When do most companies record sales returns and allowances?

12.   A positive confirmation is more reliable evidence than a negative confirmation because:

13.   The audit procedure that provides the auditor with the most appropriate evidence when performing test of details of balances for accounts receivable is:

14.   The most important aspect of evaluating the client’s method of obtaining a reliable cutoff is to:

15.   For cash receipts, the occurrence transaction-related audit objective affects which of the following balance-related audit objective?

16.   As the amount of misstatements expected in the population approaches tolerable misstatement, the planned sample size will:

17.   The client’s trial balance has a balance of $410,000 for merchandise inventory. As the auditor you are willing to accept a balance that is within $20,000 of either side of the recorded balance. You compute a 95% confidence interval of $395,000 to $425,000. You could therefore:

18.   In monetary unit sampling, a sampling interval of 900 means that:

19.   In estimating the population misstatement, the first step in projecting from the sample to the population is to:

20.   If no exceptions were found in the substantive tests of transactions:

21.   The final step in the evaluation of the audit results is the decision to:

22.   One of the steps involved in planning the sample for the tests of details of balances is to:

23.   If acceptable audit risk is increased, acceptable risk of incorrect acceptance should be:

24.   If an auditor concludes that internal controls are likely to be effective, the preliminary assessment of control risk can be reduced, leading to which of the following impacts on the acceptable risk of incorrect acceptance?

25.   You are auditing Nelson and Company and determined that the sample results support a conclusion that the account is materially misstated, when in fact it was not misstated. This illustrates the risk of:

26.   When using monetary unit sampling, the recorded dollar population is a definition of all the items in the:

27.   The most commonly used method of statistical sampling for tests of details of balances is:

28.   While performing a substantive test of details during an audit, the auditor determined that the sample results supported the conclusion that the recorded account balance was not materially misstated. It was, in fact, materially misstated. This situation illustrates the risk of:

29.   When defining the population and the sampling unit for tests of details of balances:

30.   If an auditor desires a greater level of assurance in auditing a balance, the acceptable risk of incorrect acceptance:

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Quiz 8 Set 2

1.      If the client’s internal control for recording sales returns and allowances is evaluated as ineffective:

2.      Which of the following is likely to be determined first when performing tests of details for accounts receivable?

3.      Because of its central role in auditing of accounts receivable, which of the following would normally be one of the first items tested?

4.      The understatement of sales and accounts receivable is best uncovered by:

5.      For most audits, a proper cash receipts cutoff is less important than the sales cutoff because the improper cutoff of cash:

6.      When designing tests of details of balances, an important point to remember is:

7.      An auditor selects a sample from the file of shipping documents to determine whether invoices were prepared. This test is to satisfy the audit objective of:

8.      The audit procedure that provides the auditor with the most appropriate evidence when performing test of details of balances for accounts receivable is:

9.      When do most companies record sales returns and allowances?

10.   Which of the following most likely would be detected by a review of a client’s sales cutoff?

11.   A listing of the balances in the accounts receivable master file at the balance sheet date, by total balance outstanding and by the amount of time the component parts have been outstanding, is the:

12.   Cutoff misstatements occur:

13.   A positive confirmation is more reliable evidence than a negative confirmation because:

14.   Which of the following audit procedure would normally be included in the audit plan when auditing the allowance for doubtful accounts?

15.   Communication addressed to the debtor requesting him or her to confirm whether the balance as stated on the communication is correct or incorrect is a:

16.   You are auditing Nelson and Company and determined that the sample results support a conclusion that the account is materially misstated, when in fact it was not misstated. This illustrates the risk of:

17.   If acceptable audit risk is increased, acceptable risk of incorrect acceptance should be:

18.   The most commonly used method of statistical sampling for tests of details of balances is:

19.   If an auditor desires a greater level of assurance in auditing a balance, the acceptable risk of incorrect acceptance:

20.   Which of the following is not a type of statistical method that provides results in dollar terms?

21.   If an auditor concludes that internal controls are likely to be effective, the preliminary assessment of control risk can be reduced, leading to which of the following impacts on the acceptable risk of incorrect acceptance?

22.   One of the steps involved in planning the sample for the tests of details of balances is to:

23.   The word below that best explains the relationship between required sample size and the acceptable risk of incorrect acceptance is:

24.   If the population is not considered acceptable, one step the auditor is likely to take is to:

25.   The appropriate assumption to make regarding the overall percent of error in those population items containing an error is:

26.   The final step in the evaluation of the audit results is the decision to:

27.   The allowance for sampling risk when no misstatements are found in the sample is:

28.   The method used to measure the estimated total error amount in a population when there is both a recorded value and an audited value for each item in the sample is:

29.   The auditor is concerned with the audited value rather than the error amount of each item in the sample when using:

30.   As the amount of misstatements expected in the population approaches tolerable misstatement, the planned sample size will:

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Quiz Chapters 21-24

1.      Testing the information on the aged trial balance for detail tie-in is a necessary audit procedure, which would normally include:

2.      Which of the following is the principle “weakness” of using negative confirmations for your tests of details of balances for accounts receivable?

3.      Most tests of accounts receivable are based on what schedule, file, or listing?

4.      When do most companies record sales returns and allowances?

5.      Audit procedures designed to uncover credit sales made after the client’s fiscal year end that relate to the current year being audited provide evidence for which of the following audit objective?

6.      Tests of which balance-related audit objective are normally performed first in an audit of the sales and collection?

7.      The correct accounting for accounts receivable accounts with credit balances, provided they are significant, would be:

8.      An auditor is performing a credit analysis of customers with balances over 60 days due. She is most likely obtaining evidence for which audit related objective?

9.      In performing your audit you noticed that often times goods are shipped that are not matched with the corresponding sales invoice. This control deficiency could cause:

10.   For cash receipts, the occurrence transaction-related audit objective affects which of the following balance-related audit objective?

11.   An auditor selects a sample from the file of shipping documents to determine whether invoices were prepared. This test is performed to satisfy the audit objective of:

12.   The audit procedure of tracing sales invoices to shipping documents will provide the auditor evidence that:

13.   The most important test of details of balances to determine the existence of recorded accounts receivable is:

14.   For most audits, inherent risk for accounts receivable is moderate or low except for which balance-related audit objectives?

15.   Cutoff misstatements occur when:

16.   Tests for rates of occurrence are appropriately used in all but which of the following situations?

17.   If acceptable audit risk is increased, acceptable risk of incorrect acceptance should be:

18.   Which of the following is not a type of statistical method that provides results in dollar terms?

19.   The method used to measure the estimated total error amount in a population when there is both a recorded value and an audited value for each item in the sample is:

20.   What is the purpose of applying stratified sampling to a population?

21.   The final step in the evaluation of the audit results is the decision to:

22.   In estimating the population misstatement, the first step in projecting from the sample to the population is to:

23.   You are auditing Nelson and Company and determined that the sample results support a conclusion that the account is materially misstated, when in fact it was not misstated. This illustrates the risk of:

24.   As the amount of misstatements expected in the population approaches tolerable misstatement, the planned sample size will:

25.   The auditor is concerned with the audited value rather than the error amount of each item in the sample when using:

26.   When selecting a sample size for substantive tests of balances which factor, other factors being equal, would result in a larger sample?

27.   The risk the auditor is willing to take of accepting a balance as correct when the true misstatement in the balance under audit is greater than the tolerable misstatement is:

28.   When errors are found in a sample, auditors in practice generally make the assumption:

29.   Which of the following does not have to be considered in determining the initial sample size of a test of details?

30.   The auditor’s principal objective when using a sample of tests of details of balances is whether the:

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Quiz Set 4

1.      The Sarbanes-Oxley Act applies to which of the following companies?

2.      Which of the following services provides the lowest level of assurance on a financial statement?

3.      Which of the following is considered audit evidence?

4.      An examination of part of an organization’s procedures and methods for the purpose of evaluating efficiency and effectiveness is what type of audit?

5.      Any service that requires a CPA firm to issue a report about the reliability of an assertion that is made by another party is a(n):

6.      An accountant:

7.      ________ risk reflects the possibility that the information upon which the business decision was made was inaccurate.

8.      Which of the following is not a SysTrust Services principle as defined by the AICPA?

9.      The most common way for users to obtain reliable information is to:

10.   A correct relationship among the auditor, the client, and the external users is:

11.   Three common types of attestation services are:

12.   An audit to determine whether an entity is following specific procedures or rules set down by some higher authority is classified as a(n):

13.   One objective of an operational audit is to:

14.   Recording, classifying, and summarizing economic events in a logical manner for the purpose of providing financial information for decision making is commonly called:

15.   The use of the Certified Public Accountant title is regulated by:

16.   Historically auditing standards have been organized into three categories, including:

17.   Which of the following statements best describes the primary purpose of Statements on Auditing Standards?

18.   Statements on Auditing Standards issued by the AICPA’s Auditing Standards Board are:

19.   To obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, the auditor must fulfill several performance responsibilities, including:

20.   The purpose of establishing quality control policies and procedures to accept or continue a client relationship is to:

21.   Statements on Standards for Accounting and Review Services are issued by the:

22.   The form that must be filed with the Securities and Exchange Commission whenever a company plans to issue new securities to the public is the:

23.   The legal right to perform audits is granted to a CPA firm by regulation of:

24.   Hansen Corporation’s stock is listed on a national stock exchange and registered with the Securities and Exchange Commission. Hansen’s management hires a CPA to perform an independent audit of Hansen’s financial statements. The primary objective of this audit is to provide assurance to the:

25.   The form that must be completed and filed with the Securities and Exchange Commission whenever a company experiences a significant event that is of interest to public investors is the:

26.   Standards issued by the Public Company Accounting Oversight Board must be followed by CPAs who audit:

27.   The Statements on Auditing Standards issued by the Auditing Standards Board:

28.   Members of the Public Company Accounting Oversight Board are appointed and overseen by:

29.   Which of the following is not one of the responsibilities of an auditor under the principles underlying an audit?

30.   When assessing the risk of material misstatements in the financial statements,

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Week 10 quiz 8

1. For cash receipts, the occurrence transaction-related audit objective affects which of the following balance-related audit objective?
2. The most effective audit evidence gathered for accounts receivable is the:
3. Which of the following is the principle “weakness” of using negative confirmations for your tests of details of balances for accounts receivable?
4. Because of its central role in auditing of accounts receivable, which of the following would normally be one of the first items tested?
5. Tests of which balance-related audit objective are normally performed first in an audit of the sales and collection?
6. If the client’s internal control for recording sales returns and allowances is evaluated as ineffective:
7. The net realizable value of accounts receivable is equal to:
8. The audit procedure that provides the auditor with the most appropriate evidence when performing test of details of balances for accounts receivable is:
9. The understatement of sales and accounts receivable is best uncovered by:
10. Confirmation of accounts receivable selected from the trial balance is the most common test of details of balances for the ________ of accounts receivable.
11. Audit procedures designed to uncover credit sales made after the client’s fiscal year end that relate to the current year being audited provide evidence for which of the following audit objective?
12. An auditor selects a sample from the file of shipping documents to determine whether invoices were prepared. This test is to satisfy the audit objective of:
13. A type of positive confirmation known as a blank confirmation:
14. Which of the following audit procedure would normally be included in the audit plan when auditing the allowance for doubtful accounts?
15. For sales, the occurrence transaction-related audit objective affects which of the following balance-related audit objective?
16. The allowance for sampling risk when no misstatements are found in the sample is:
17. Monetary unit sampling is not particularly effective at detecting:
18. The auditor is concerned with the audited value rather than the error amount of each item in the sample when using:
19. The auditors principal objective when using a sample of tests of details of balances is whether the:
20. The client’s trial balance has a balance of $410,000 for merchandise inventory. As the auditor you are willing to accept a balance that is within $20,000 of either side of the recorded balance. You compute a 95% confidence interval of $395,000 to $425,000. You could therefore:

21. If an auditor concludes that internal controls are likely to be effective, the preliminary assessment of control risk can be reduced, leading to which of the following impacts on the acceptable risk of incorrect acceptance?
22. When using monetary unit sampling, the recorded dollar population is a definition of all the items in the:
23. The final step in the evaluation of the audit results is the decision to:
24. One of the steps involved in planning the sample for the tests of details of balances is to:
25. If the population is not considered acceptable, one step the auditor is likely to take is to:
26. In monetary unit sampling, a sampling interval of 900 means that:
27. If no exceptions were found in the substantive tests of transactions:
28. The appropriate assumption to make regarding the overall percent of error in those population items containing an error is:

29. The method used to measure the estimated total error amount in a population when there is both a recorded value and an audited value for each item in the sample is:
30. Which of the following is not a type of statistical method that provides results in dollar terms?

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Week 10 Quiz 8 – Part 1 Chapter 16

1.      When do most companies record sales returns and allowances?

2.      Which of the following is the principle “weakness” of using negative confirmations for your tests of details of balances for accounts receivable?

3.      Because of its central role in auditing of accounts receivable, which of the following would normally be one of the first items tested?

4.      Which of the following is likely to be determined first when performing tests of details for accounts receivable?

5.      The two primary classes of transactions in the sales and collection cycle are:

6.      The most important aspect of evaluating the client’s method of obtaining a reliable cutoff is to:

7.      Cutoff misstatements occur:

8.      For most audits, a proper cash receipts cutoff is less important than the sales cutoff because the improper cutoff of cash:

9.      An auditor selects a sample from the file of shipping documents to determine whether invoices were prepared. This test is to satisfy the audit objective of:

10.   Confirmation of accounts receivable selected from the trial balance is the most common test of details of balances for the ________ of accounts receivable.

11.   The understatement of sales and accounts receivable is best uncovered by:

12.   The most effective audit evidence gathered for accounts receivable is the:

13.   A type of positive confirmation known as a blank confirmation:

14.   A listing of the balances in the accounts receivable master file at the balance sheet date, by total balance outstanding and by the amount of time the component parts have been outstanding, is the:

15.   For sales, the occurrence transaction-related audit objective affects which of the following balance-related audit objective?

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Week 10 Quiz 8 – Part 2 Chapter 17

1.      The client’s trial balance has a balance of $410,000 for merchandise inventory. As the auditor you are willing to accept a balance that is within $20,000 of either side of the recorded balance. You compute a 95% confidence interval of $395,000 to $425,000. You could therefore:

2.      If the population is not considered acceptable, one step the auditor is likely to take is to:

3.      The auditors principal objective when using a sample of tests of details of balances is whether the:

4.      When selecting a sample size for substantive tests of balances which factor, other factors being equal, would result in a larger sample?

5.      The final step in the evaluation of the audit results is the decision to:

6.      Monetary unit sampling is not particularly effective at detecting:

7.      In monetary unit sampling, the relationship between tolerable misstatement size and required sample size is:

8.      If no exceptions were found in the substantive tests of transactions:

9.      When the sample selection is done using probability proportional to size sample selection (PPS):

10.   When using monetary unit sampling, the recorded dollar population is a definition of all the items in the:

11.   When defining the population and the sampling unit for tests of details of balances:

12.   If an auditor concludes that internal controls are likely to be effective, the preliminary assessment of control risk can be reduced, leading to which of the following impacts on the acceptable risk of incorrect acceptance?

13.   If acceptable audit risk is increased, acceptable risk of incorrect acceptance should be:

14.   The word below that best explains the relationship between required sample size and the acceptable risk of incorrect acceptance is:

15.   The risk the auditor is willing to take of accepting a balance as correct when the true misstatement in the balance under audit is greater than the tolerable misstatement is:

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Week 11 FINAL EXAM PART 1

1.      An auditor who audits a business cycle that has low inherent risk should:

2.      The preliminary judgment about materiality and the amount of audit evidence accumulated are ________ related.

3.      Auditors are responsible for determining whether financial statements are materially misstated, so upon discovering a material misstatement they must bring it to the attention of:

4.      As the acceptable level of detection risk increases, an auditor may change the:

5.      The scope paragraph of the standard unqualified auditor’s report states that “… the standards require that we plan and perform the audit to obtain ________ assurance about whether the financial statements are free of material misstatement.” What type of assurance is given?

6.      A five-step approach can be used to identify deficiencies, significant deficiencies, and material weaknesses. The first step in this approach is:

7.      When considering internal controls, an important point to consider is that:

8.      In performing the audit of internal control over financial reporting the auditor emphasizes internal control over class of transactions because:

9.      Which of the following is responsible for establishing a private company’s internal control?

10.   Internal controls:

11.   Misappropriation of assets is normally perpetrated by:

12.   Fraud is more prevalent in smaller businesses and not-for-profit organizations because it is more difficult for them to maintain:

13.   Two of the most useful warning signals that can indicate that revenue fraud is occurring are:

14.   When analyzing accounts for fraud risk:

15.   Who is most likely to perpetrate fraudulent financial reporting?

16.   Controls that are designed for each software application and are intended to help a company satisfy the transaction-related audit objectives are:

17.   Which of the following is a component of general controls?

18.   A control that relates to all parts of the IT system is called a(n):

19.   The approach to auditing where the auditor does not test automated controls to reduce assessed control risk is called:

20.   Which of the following computer-assisted auditing techniques inserts an audit module in the client’s application system to identify specific types of transactions?

21.   Collectively, procedures performed to obtain an understanding of the entity and its environment, including internal controls, represent the auditor’s:

22.   An increased extent of tests of controls is most likely to occur when:

23.   When the auditor has completed the tests of details of balances and enters phase 4 of the audit process, she must still perform audit procedures for which of the following?

24.   Analytical procedures must be performed in:

25.   An exception or deficiency found in a test of controls:

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ACC 403 Week 11 FINAL EXAM PART 2

1.      The audit procedure referred to as proof of cash receipts is particularly useful to test:

2.      Which of the following is an account that is not affected by the sales and collection cycle?

3.      The ________ is a contract between a carrier (e.g., a trucking company) and the seller of goods that dictates the details surrounding the shipment of goods.

4.      Who is generally responsible for opening receipts when a company uses a lockbox to speed the handling of cash receipts?

5.      What event initiates a transaction in the sales and collection cycle?

6.      Auditors often use the ________ to determine the estimated population exception rate.

7.      Which of the following occurrences would be least likely to warrant further audit attention for the auditor?

8.      The most serious shortcoming of the haphazard sample selection method is:

9.      A sample in which every possible combination of items in the population has an equal chance of constituting the sample is a:

10.   One of the causes of nonsampling risk is:

11.   Communication addressed to the debtor requesting him or her to confirm whether the balance as stated on the communication is correct or incorrect is a:

12.   For most audits, a proper cash receipts cutoff is less important than the sales cutoff because the improper cutoff of cash:

13.   The audit procedure that provides the auditor with the most appropriate evidence when performing test of details of balances for accounts receivable is:

14.   Confirmation of accounts receivable selected from the trial balance is the most common test of details of balances for the ________ of accounts receivable.

15.   Which of the following is likely to be determined first when performing tests of details for accounts receivable?

16.   In estimating the population misstatement, the first step in projecting from the sample to the population is to:

17.   You are auditing Nelson and Company and determined that the sample results support a conclusion that the account is materially misstated, when in fact it was not misstated. This illustrates the risk of:

18.   If an auditor concludes that internal controls are likely to be effective, the preliminary assessment of control risk can be reduced, leading to which of the following impacts on the acceptable risk of incorrect acceptance?

19.   The client’s trial balance has a balance of $410,000 for merchandise inventory. As the auditor you are willing to accept a balance that is within $20,000 of either side of the recorded balance. You compute a 95% confidence interval of $395,000 to $425,000. You could therefore:

20.   The allowance for sampling risk when no misstatements are found in the sample is:

21.   Inventory is a complex area to audit for all but which of the following reasons?

22.   ________ is normally characterized as a difficult and complex account to audit.

23.   If an auditor were concerned with obtaining evidence about the appropriateness of the value of inventory, which of the following tests would be most appropriate?

24.   When labor is a significant part of inventory, verifying the proper accounting of these costs should be tested in the:

25.   Comparing the physical counts with the perpetual inventory master files satisfies the balance-related audit objective of:

26.   When should auditors generally assess a client’s ability to continue as a going concern?

27.   The letter of representation obtained from an audit client should be:

28.   After the balance sheet date, but prior to the issuance of the audit report, the client suffers an uninsured loss of their inventory as a result of a fire. The amount of the loss is material. The auditor should:

29.   Refusal by a client to prepare and sign the representation letter would require the auditor to issue a:

30.   When using the probability threshold for contingencies, the likelihood of the occurrence of the event is classified as:

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ACC 403 Week 2 Quiz 1

1.      The most common way for users to obtain reliable information is to:

2.      The three requirements for becoming a CPA include all but which of the following?

3.      An accountant:

4.      Which of the following is not a SysTrust Services principle as defined by the AICPA?

5.      ________ risk reflects the possibility that the information upon which the business decision was made was inaccurate.

6.      Recording, classifying, and summarizing economic events in a logical manner for the purpose of providing financial information for decision making is commonly called:

7.      The Sarbanes-Oxley Act applies to which of the following companies?

8.      Which of the following services provides the lowest level of assurance on a financial statement?

9.      An examination of part of an organization’s procedures and methods for the purpose of evaluating efficiency and effectiveness is what type of audit?

10.   In “auditing” financial accounting data, the primary concern is with:

11.   An audit to determine whether an entity is following specific procedures or rules set down by some higher authority is classified as a(n):

12.   The use of the Certified Public Accountant title is regulated by:

13.   A correct relationship among the auditor, the client, and the external users is:

14.   Three common types of attestation services are:

15.   One objective of an operational audit is to:

16.   The form that must be filed with the Securities and Exchange Commission whenever a company plans to issue new securities to the public is the:

17.   The methods used by a CPA firm to ensure that the firm meets is professional responsibilities to clients and others is:

18.   Hansen Corporation’s stock is listed on a national stock exchange and registered with the Securities and Exchange Commission. Hansen’s management hires a CPA to perform an independent audit of Hansen’s financial statements. The primary objective of this audit is to provide assurance to the:

19.   For privately held companies who is responsible for establishing auditing standards?

20.   The form that must be completed and filed with the Securities and Exchange Commission whenever a company experiences a significant event that is of interest to public investors is the:

21.   Historically auditing standards have been organized into three categories, including:

22.   In order to properly plan and perform an audit, an important fact for both the auditor and the client to understand is that:

23.   Which of the following is an element of the CPA’s quality control system that should be considered in establishing its quality control policies and procedures?

24.   Standards issued by the Public Company Accounting Oversight Board must be followed by CPAs who audit:

25.   To obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, the auditor must fulfill several performance responsibilities, including:

26.   Assume the Public Company Accounting Oversight Board (PCAOB) identifies a violation during its inspection of a registered accounting firm. The PCAOB:

27.   Which of the following statements best describes the primary purpose of Statements on Auditing Standards?

28.   The “Principles Underlying an Audit in Accordance with Generally Accepted Auditing Principles” provides a framework to help auditors:

29.   The AICPA has authority to establish standards and rules in all but which of the following areas?

30.   The International Standards on Auditing (ISAs):

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ACC 403 Week 3 Quiz 2

1.      If the phrase “except for” is present in the opinion paragraph of the audit report, the auditor has issued a(n):

2.      The term “explanatory paragraph” was replaced in the AICPA auditing standards with:

3.      The first step to be followed when deciding the appropriate audit report in a given set of circumstances is to:

4.      After the auditor determines whether any conditions exist which require a departure from a standard unqualified report, the next step in the decision process for audit reports is to:

5.      The standard unqualified audit report:

6.      Items that materially affect the comparability of financial statements generally require disclosure in the footnotes. If the client refuses to properly disclose the item, the auditor will most likely issue:

7.      An audit of historical financial statements most commonly includes the:

8.      If most or all users’ decisions that are based on the financial statements are likely to be significantly affected, the materiality level is:

9.      When dealing with materiality and scope limitation conditions:

10.   Auditing standards for public companies are established by the:

11.   A CPA may wish to emphasize specific matters regarding the financial statements even though an unqualified opinion will be issued. Normally, such explanatory information is:

12.   The standard unqualified audit report for public entities includes the following three paragraphs:

13.   When there is uncertainty about a company’s ability to continue as a going concern, the auditor’s concern is the possibility that the client may not be able to continue its operations or meet its obligations for a “reasonable period of time.” For this purpose, a reasonable period of time is considered not to exceed:

14.   As a result of management’s refusal to permit the auditor to physically examine inventory, the auditor must depart from the unqualified audit report because:

15.   Which of the following is least likely to cause uncertainty about the ability of an entity to continue as a going concern?

16.   Which of the following services are allowed by the SEC whenever a CPA also audits the company?

17.   The CPA must not subordinate his or her professional judgment to that of others in any:

18.   “Independence” in auditing means:

19.   Of the four parts of the AICPA’s Code of Professional Conduct, which part is enforceable?

20.   Freedom from ________ means the absence of relationships that might interfere with objectivity or integrity.

21.   A CPA firm:

22.   The Sarbanes-Oxley Act requires a cooling off period of ________ before a member of an audit team can work for a client in a key management position?

23.   The AICPA’s Code of Professional Conduct states that a CPA should maintain integrity and objectivity. The term “objectivity” in the Code refers to a CPA’s ability to:

24.   Several months after an unqualified audit report was issued, the auditor discovers the financial statements were materially misstated. The client’s CEO agrees that there are misstatements, but refuses to correct them. She claims that “confidentiality” prevents the CPA from informing anyone. Which of the following statements is correct?

25.   When a member observes the profession’s technical and ethical standards and strives to continually improve her competence and quality of services, she is exercising:

26.   A CPA firm may charge a contingent fee for:

27.   The AICPA’s Code of Professional Conduct requires independence for all:

28.   The Sarbanes-Oxley Act ________ a CPA firm from doing both bookkeeping and auditing services for the same public company client.

29.   According to the Principles section of the Code of Professional Conduct, all members:

30.   A six-step approach is often used to resolve an ethical dilemma. The first step in this process is to:

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ACC 403 Week 4 Quiz 3

1.      Which of the following most accurately describes fraud?

2.      A CPA is subject to criminal liability if the CPA:

3.      While the Foreign Corrupt Practices Act of 1977 remains in effect, its internal control provisions have been largely superseded by which of the following?

4.      “Absence of reasonable care that can be expected of a person in a set of circumstances” defines:

5.      The laws that have been developed through court decisions are called:

6.      A broad interpretation of the rights of third-party beneficiaries holds that users that the auditor should have been able to foresee as being likely users of financial statements have the same rights as those with privity of contract. This is known as the concept of:

7.      The standard of due care to which the auditor is expected to adhere to in the performance of the audit is referred to as the:

8.      An individual who is not party to the contract between a CPA and the client, but who is known by both and is intended to receive certain benefits from the contract is known as:

9.      Privity of contract exists between:

10.   Fraud occurs when:

11.   In connection with the audit of financial statements, an independent auditor could be responsible for failure to detect a material fraud if:

12.   Laws that have been passed by the U.S. Congress and other governmental units are:

13.   Which of the following most accurately describes constructive fraud?

14.   In the auditing environment, failure to meet auditing standards is often:

15.   The expectation gap:

16.   The responsibility for the preparation of the financial statements and the accompanying footnotes belongs to:

17.   The posting and summarization audit objective is the auditor’s counterpart to management’s assertion of:

18.   Which of the following statements is the most correct regarding errors and fraud?

19.   Which of the following assertions is described as “this assertion addresses whether all transactions that should be included in the financial statements are in fact included”?

20.   The most important general ledger account included in and affecting several cycles is the:

21.   Tests of details of balances are specific audit procedures that are intended to:

22.   “The auditor should not assume that management is dishonest, but the possibility of dishonesty must be considered.” This is an example of:

23.   When an auditor believes that an illegal act may have occurred, the auditor should first:

24.   The essence of the attest function is to:

25.   Management assertions are:

26.   Fraudulent financial reporting is most likely to be committed by whom?

27.   The objective of an audit of the financial statements is an expression of an opinion on:

28.   When an auditor knows that an illegal act has occurred, she must:

29.   If a client has violated federal tax laws:

30.   Which of the following is the auditor least likely to do when aware of an illegal act?

ACC 403 ACC403 ACC/403 ENTIRE COURSE HELP – STRAYER UNIVERSITY

ACC 403 Week 5 Midterm Exam Part 1

1.      Which of the following is considered audit evidence?

2.      The Sarbanes-Oxley Act applies to which of the following companies?

3.      Any service that requires a CPA firm to issue a report about the reliability of an assertion that is made by another party is a(n):

4.      Which of the following services provides the lowest level of assurance on a financial statement?

5.      In “auditing” financial accounting data, the primary concern is with:

6.      The use of the Certified Public Accountant title is regulated by:

7.      The organization that is responsible for providing oversight for auditors of public companies is called the ________.

8.      The legal right to perform audits is granted to a CPA firm by regulation of:

9.      The “Principles Underlying an Audit in Accordance with Generally Accepted Auditing Principles” provides a framework to help auditors:

10.   The methods used by a CPA firm to ensure that the firm meets is professional responsibilities to clients and others is:

11.   In order to properly plan and perform an audit, an important fact for both the auditor and the client to understand is that:

12.   Within the context of quality control, the primary purpose of continuing professional education and training activities is to enable a CPA firm to provide its personnel with:

13.   When the auditor determines that the financial statements are fairly stated, but there is a nonindependent relationship between the auditor and the client, the auditor should issue:

14.   The audit report date on a standard unqualified report indicates:

15.   The appropriate audit report date for a standard nonqualified audit report for a non-public entity should be the:

16.   The auditor’s responsibility section of the standard audit report states that the auditor is:

17.   When a qualified or adverse opinion is issued, the qualifying paragraph is inserted:

18.   The standard unqualified audit report for a non-public entity must:

19.   A CPA firm may charge a contingent fee for:

20.   When a member observes the profession’s technical and ethical standards and strives to continually improve her competence and quality of services, she is exercising:

21.   The underlying reason for a code of professional conduct for any profession is:

22.   The CPA must not subordinate his or her professional judgment to that of others in any:

23.   When CPAs are able to maintain their actual independence, it is referred to as independence in:

24.   In determining independence with respect to any audit engagement, the ultimate decision as to whether or not the auditor is independent must be made by the:

The AICPA’s Code of Professional Conduct requires independence for all:

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ACC 403 Week 5 Midterm Part 2

1.      Which of the following most accurately describes constructive fraud?

2.      Laws that have been passed by the U.S. Congress and other governmental units are:

3.      “Absence of reasonable care that can be expected of a person in a set of circumstances” defines:

4.      A broad interpretation of the rights of third-party beneficiaries holds that users that the auditor should have been able to foresee as being likely users of financial statements have the same rights as those with privity of contract. This is known as the concept of:

5.      Which of the following most accurately describes fraud?

6.      The assessment against a defendant of the full loss suffered by a plaintiff regardless of the extent to which other parties shared in the wrongdoing is called:

7.      Management assertions are:

8.      The responsibility for the preparation of the financial statements and the accompanying footnotes belongs to:

9.      Which of the following is the auditor least likely to do when aware of an illegal act?

10.   In testing for cutoff, the objective is to determine:

11.   The auditor’s best defense when material misstatements are not uncovered is to have conducted the audit:

12.   If the auditor believes that the financial statements are not fairly stated or is unable to reach a conclusion because of insufficient evidence, the auditor:

13.   The evaluations of financial information through analysis of plausible relationships among financial and nonfinancial data is the definition of:

14.   Evidence is generally considered appropriate when:

15.   An example of a document the auditor receives from the client, but which was prepared by someone outside the client’s organization, is a:

16.   The Auditing Standards Board has concluded that analytical procedures are so important that they are required during:

17.   Appropriateness of evidence is a measure of the:

18.   Which of the following is not a characteristic of the reliability of evidence?

19.   ________ is the auditor’s examination of the client’s documents and records to substantiate that the information is included in the financial statements.

20.   Most auditors assess inherent risk as high for related parties and related-party transactions because:

21.   An auditor should examine minutes of the board of directors’ meetings:

22.   A related party transaction may be indicated when another company:

23.   Initial audit planning involves four matters. Which of the following is not
one of these?

24.   The audit team gathers information about a new client’s business and industry in order to obtain:

25.   Which of the following normally signs the engagement letter for an audit of a private company?