Chapter 1 Connect

Question 1

the term used to identify the risk that the client’s financial statements may be materially false and misleading

Answer 1

information risk

Question 2

An attestation engagement is one in which a CPA:

Answer 2

issues a report on subject matter or an assertion about the subject matter that is the responsibility of another party

Question 3

which of the following is NOT included in the AAA definition of auditing?
- systematic process
- potential conflict of interest
- assertions about economic actions
- established criteria

Answer 3

potential conflict of interest

Question 4

what type of evidence would provide the highest level of assurance in an attestation engagement?

Answer 4

evidence obtained from independent sources

Question 5

which of the following assertions is not explicitly identified in AS 2201?
- completeness
- valuation or allocation
- accuracy
- existence or occurence

Answer 5

accuracy

Question 6

an auditor traces the serial numbers on equipment to a nonissuer’s subledger. which management assertion is supported by this test?

Answer 6

completeness