Ch 3 Gleim

Question 1

in assessing whether to accept a client for an audit engagement, a CPA should consider:

Answer 1

both the CPA and client’s business risk

Question 2

during the initial planning phase of an audit, a CPA most likely would:

Answer 2

discuss the timing of the audit procedures with the client’s management

Question 3

audit standards require audit evidence to be ________

Answer 3

sufficient and appropriate

Question 4

the objective of performing analytical procedures in planning an audit is to identify the existence of:

Answer 4

unusual transactions and events

Question 5

analytical procedures are required as:

Answer 5

• risk assessment procedures
• to assist in forming an overall conclusion

Question 6

analytical procedures alone may _________ audit risk to __________

Answer 6

reduce; acceptably low levels

Question 7

which tends to be more predictable: balance sheet accounts or income statement accounts?

Answer 7

income statement

Question 8

which assertion is being tested when an auditor’s inventory observation test counts are traced to the client’s inventory listing?

Answer 8

completeness

Question 9

analytical procedures can best be categorized as:

Answer 9

substantive procedures