Day 15

Question 1

What is required by using visualizations regarding audit data analytics findings?

Answer 1

The Y-axis must start at zero

Question 2

Five components of Internal Control

Answer 2

Control Environment
Risk Assessment by MGMT
Information and Communication systems
Monitoring
Existing Control Activities

Question 3

Define: Rights and Obligations assertion

Answer 3

Deal with whether the ASSETS are the rights of the entity and LIABILITIES are the obligations of the entity

Question 4

What assertion is being tested: the auditor observed the client mail monthly stmts to customers. Subsequently the auditor reviewed evidence of follow-up on the errors reported by customers

Answer 4

Rights and Obligations

Question 5

What testing method would the audit use to estimate a numerical measurement of a population, such as a dollar amount for inventory?

Answer 5

Variable Sampling

Question 6

What procedure should the auditor do when choosing to rely on a component auditor?

Answer 6

Review the other firm’s audit WPS and reperform a subset of audit testing to validate the other firm’s conclusions

Question 7

Before reissuing the PY auditor’s report of a former client, the predecessor auditor should obtain written representations from who?

Answer 7

The former client and former client Mgmt

Question 8

When should the auditor reduce reliance on a prescribed control?

Hint: Sampling Equation

Answer 8

Sample Rate of Deviation + The Allowance for Sampling Risk > exceeds The Tolerable Rate

MCQ-02594

Question 9

What report would this stmt be included in: “An indication that had accountants performed additional procedures, other matters might have come to their attention that would have been reported”

Answer 9

Aggreged-Upon-Procedures Report

MCQ-04932

Question 10

The study of relationships among FS elements is part of performing ________ procedures.

Answer 10

Analytical Procedures

Question 11

When does the auditor report fraud to the appropriate level of Mgmt?

Answer 11

In a TIMELY manner

Question 12

For the Completeness assertion, the auditor uses AP confirmations. What population would provide the most reliable evidence?

Answer 12

Vendors with whom the client has previously done business with

Question 13

What is included in a standard compilation report on FS of a Nonissuer that omits substantially all disclosures?

Answer 13

1. Include a paragraph disclosing such omissions
2. Include a disclaimer of opinion
3. State that if the omitted disclosures were included, they might influence the user’s conclusions

Question 14

Picture the Inventory Cycle

Answer 14

L Inventory Report
Company

Test Counts Pre-numbered tags
CPA Company