A2

Question 1

Monitoring is the process of assessing the ________ of __________ control performance over time and taking the necessary corrective actions. ____________ a control that is not operating effectively would not be an appropriate corrective actions

Answer 1

QUALITY; INTERNAL; ELIMINATING

Question 2

Internal Control- integrated Framework would not be use to define _____ that must be followed throughout the organization

Answer 2

RULES

Question 3

Substantive procedures include ____ of _______ and _________ procedures and are used to detect ___________ misstatements

Answer 3

TEST; DETAILS; ANALYTICAL; MATERIAL

Question 4

Successor Auditor should ___________ contact with the predecessor auditor after receiving permission from the __________

Answer 4

INITIATE; CLIENT

Question 5

Audit confirmations from client’s customers taking longer than usual may lead auditor to suspecting that _____________ exists

Answer 5

FRAUD

Question 6

A key way of telling if management specialist or audit specialist to know who _______ the individual

Answer 6

HIRED

Question 7

A management specialist or auditor’s specialist is someone who has an expertise in an area other than ____________ or __________

Answer 7

ACCOUNTING; AUDITING

Question 8

A Senior Auditor not reviewing workpapers prepared by staff auditors is a violation of which standard?

Answer 8

GENERAL STANDARDS RULE

Question 9

Outlining the nature, extent and timing of audit procedures is the primary function of an audit strategy. (T or F)

Answer 9

FALSE

Question 9

COSO was created to help businesses assess _________ control

Answer 9

INTERNAL

Question 10

Information and communication component of the integrated framework, a company must ensure that external auditors are aware of __________ internal _________ issues

Answer 10

SIGNIFICANT; CONTROL

Question 11

The engagement quality reviewer is required to identify the documentation __________

Answer 11

REVIEWED

Question 12

The risk that mistakes, falsifications and omissions may cause the financial statements to contain material misstatements is an important consideration in an auditor’s responsibility to detect __________ and __________

Answer 12

ERRORS; FRAUD

Question 13

Whos is responsible for detecting immaterial errors between an auditor and the client

Answer 13

NEITHER

Question 14

Who is responsible for the provision of the representation letter between an auditor and a client?

Answer 14

CLIENT

Question 15

In an audit, a misstatement that involves an estimate is considered a ____________ misstatement

Answer 15

JUDGEMENTAL

Question 16

A successor auditor would request to review the predecessor auditor’s documentation relating to _____________ and ____________ ___________

Answer 16

CONTINGENCIES; INTERNAL CONTROL

Question 17

When materiality is calculated by an auditor prior to year end based on PY FS and final FS have a material difference, the auditor should __________ materiality for the FS as a __________

Answer 17

REVISE; WHOLE

Question 18

Differences between management and auditor are considered what type of misstatement?

Answer 18

JUDGEMENTAL

Question 19

Making inquiries of the predecessor auditor regarding management integrity is required before accepting an new auditing engagement. (T or F)

Answer 19

True

Question 20

Acceptable level of detection risk is inversely related to the assurance provided by _____________ tests

Answer 20

SUBSTANTIVE

Question 21

According to COSO the first on going monitoring step in evaluating the effectiveness of and internal control system is establishing ____________ baseline

Answer 21

CONTROL

Question 22

When and auditor is requested to change an audit to a review engagement due to a scope limitation, the auditor need not refer to the ___________ engagement

Answer 22

ORIGINAL

Question 23

an uninterrupted power supply is an example of what type of control

Answer 23

PHYSICAL CONTROL: these

Question 24

An auditor assessing control risk at a low level can help offset high levels of __________ risk

Answer 24

INHERENT

Question 25

When a client has missplaced a document, an auditor should approach that situation with a __________ risk that __________ may have occured

Answer 25

HEIGHTENED; FRAUD

Question 26

Lack of independent checks is a _________ risk factor that provides an opportunity for ___________ of assets

Answer 26

FRAUD; MISAPPROPRIATION

Question 27

proper segregation of duties is an example of a control environment factor (T or F)

Answer 27

False