Audit Enumeration 2

Question 1

Misstatements emanate from

Answer 1

1. Error
2. Fraud
3. Noncompliance with law and regulations

Question 2

Types of Fraud

Answer 2

1. Management Fraud

2. Employee Fraud

Question 3

Fraud risk factors

Answer 3

1. management’s characteristics and influence over control environment
2. Industry conditions
3. Operating characteristic and financial stability
4. Susceptibility of assets to misappropriation
5. Controls

Question 4

Classes of transactions

Answer 4

1. Completeness
2. Occurence
3. Cut-off
4. Accuracy
5. Classification

Question 5

Account balances

Answer 5

1. Right and obligation
2. Existence
3. Completeness
4. Valuation and allocation

Question 6

Presentation and disclosure

Answer 6

1. Completeness
2. Occurence and rights and obligation
3. Classification and understandability
4. Accuracy and valuation

Question 7

Audit Procedure

Answer 7

1. Inspection
2. Observation
3. Inquiry
4. Confirmation
5. Computation
6. Analytical Procedures

Question 8

Audit Process

Answer 8

1. Accepting an engagement
2. Audit planning
3. Considering internal control
4. Performing substantive test
5. Completing the audit
6. Issuing a report

Question 9

Accepting an engagement

Answer 9

1. Completence
2. Independence
3. Ability to serve the client properly
4. Integrity of the management

Question 10

Develop expectations regarding FS using

Answer 10

1. Prior years financial statement
2. Anticipated results such as budgets and forecats
3. Industry averages
4. Non-financial information
5. Typical relationships among FS account balances