deck 3

Question 1

????most likely would not be considered an inherent limitation of the potential effectiveness of an entity’s internal control structure?

Answer 1

Incompatible duties

Question 2

An auditor may decide to assess control risk at the maximum level for certain assertions because the auditor believes

Answer 2

Evaluating the effectiveness of policies and procedures is inefficient

Question 3

Assessing control risk at below the maximum level most likely would involve

Answer 3

Identifying specific internal control structure policies and procedures relevant to specific assertions

Question 4

In AICPA professional standards the word should indicates an

Answer 4

presumptively mandatory requirement from which the CPA can rarely depart…

Question 5

AN ARTICLE IN THE AICPA JOURNAL OF ACCOUNTANCY IS NOT AN???

Answer 5

INTERPRETIVE PUBLICATION

Question 6

standards of ?????? was included in the AICPA’s ten historical GAAS

Answer 6

Standards of field work

Question 7

audit evidence is obtained in part through

Answer 7

analytical procedures

Question 8

“After performing our preliminary analytical procedures we will discuss with you the other procedures we consider necessary to complete the engagement”—this statement would least likely appear in??????

Answer 8

auditors engagement letter

Question 9

in order to have reasonable assurance of meeting its service duty a CPA firm needs to have a system of

Answer 9

quality control

Question 10

????? would be difficult to determine because electronic evidence may not be retrievable after a specific period

Answer 10

the timing of control and substantive tests…

Question 11

the audit program cannot be finalized until the consideration of the IC structure has been ????

Answer 11

completed

Question 12

a decline in customer demand would heighten an auditors concern about the risk of ???

Answer 12

material misstatements….

Question 13

supporting records that should be redily available are frequently not produced when requested….this problem should cause the auditor to be concerned that

Answer 13

material misstatements exist.

Question 14

the content of the clients representation letter is ???? a factor that affects the auditors judgment as to the quantity type and content of the audit documentation

Answer 14

NOT!!!!!!

Question 15

comparing invoices to receiving reports is NOT????

Answer 15

a planning procedure for an audit…

Question 16

the degree to which information technology is used in the accounting function would affect?????

Answer 16

the extent of the documentation of the auditors understanding of internal controls…

Question 17

The entities annualized FS for the prior year and the interim FS would be most likely used in determining the auditors preliminary judgment about

Answer 17

materiality….

Question 18

the susceptibility of an assertion to a material misstatement

Answer 18

inherent risk

Question 19

Theft of cash and concealment by false accounting entries

Answer 19

misappropriation of assets

Question 20

When an auditor increases the assessed level of control risk because certain control proceedures were determined to be ineffective, the auditor would most likely increase the

Answer 20

extent of tests of details