AUDIT CIS

Question 1

is an independent attestation performed by an expert—the auditor—who expresses an opinion regarding the presentation of financial statements

Answer 1

External Financial Audits

Question 2

Publicly Traded Companies

Answer 2

The Securities and Exchange Commission (SEC) requires these companies be subject to a financial audit annually

Question 3

is the likelihood that the control structure is flawed because controls are either absent or inadequate to prevent or detect errors in the accounts

Answer 3

Control Risk

Question 4

the objective of this audit is to investigate anomalies and gather evidence of fraud that may lead to criminal conviction

Answer 4

Fraud Audit

Question 5

established to know if internal controls are functioning properly

Answer 5

Test of controls

Question 6

a detailed investigation of specific account balances and transactions through

Answer 6

Substantive tests

Question 7

are intentional misrepresentations associated with the commission of a fraud such as the misappropriation of physical assets or the deception of financial statement users

Answer 7

Irregularities