Next Quiz Mods 1-4

Question 0

Since the primary concern is whether equipment remaining on the records as assets has been retired, the auditor would…2

Answer 0

1 Select items of equipment from the accounting records for testing

2) these equipment items would be located in the plant and
Determined if they are still in use

Question 1

When equipment remains on the records as an asset when it has been retired this results in…

Answer 1

An overstatement of equipment

Question 2

Inspecting certain items of equipment in the plant and tracing those items to the accounting records are tests of completeness, which would show if the equipment account is…

Answer 2

Understated

Question 3

A weakness in internal control over recording retirements of equipment may cause an auditor to…

Answer 3

Select certain items of equipment from the accounting records
And locate them in the plant

Question 4

“If a difference of opinion on a practice problem existed between engagement personnel and a specialist or other consultant, was the difference resolved in accordance with firm policy and appropriately documented?”

What is the most likely source of the following question?

Answer 4

Partner’s engagement review program

Question 5

A partner’s engagement review program would include a statement concerning…

Answer 5

A difference of opinion between engagement personnel and

Specialists or consultants

Question 6

In performing an audit, the auditor may request direct assistance from the internal auditor in…3

Answer 6

1 obtaining an understanding of internal control

2 performing tests of controls

3 performing substantive tests

Question 7

When direct assistance is provided by the internal auditor, the independent auditor should…2

Answer 7

1 assess the internal auditor’s competence and objectivity

2 supervise, review, evaluate and test work performed by internal
Auditor’s to extent appropriate in the circumstances

Question 8

Generally significant deficiencies are reported at…

2) however…

Answer 8

The conclusion of the audit

2) timely communication may be important

Question 9

An auditor may communicate significant deficiencies…

Answer 9

During an audit or after the audit’s completion

Question 10

Under the clarity project, an auditor is required to understand the design and operation of internal control in order to identify types of potential misstatements, consider factors that affect the risk of material misstatements and design of auditing procedures. Therefore the auditor is not required to…

Answer 10

Search for significant deficiencies during the audit

Question 11

An auditor’s report cannot state…

Answer 11

“No significant deficiencies were noted”

Question 12

An auditor’s report can state…

Answer 12

“We did not identify any deficiencies in internal control that we
Consider to be material weaknesses”

Question 13

The International Ethics Standards Board for Accountants (IESBA) Code of Ethics for Professional Accountants only establishes…

Answer 13

A conceptual framework

Question 14

The International Ethics Standards Board for Accountants (IESBA) Code of Ethics for Professional Accountants has not issued…

Answer 14

Rules or interpretations (rulings)

Question 15

The International Ethics Standards Board for Accountants (IESBA) Code of Ethics for Professional Accountants promotes compliance with 5 fundamental principles of professional ethics:

Answer 15

1 integrity
2 objectivity
3 professional competence and due care
4 confidentiality
5 professional behavior

Question 16

Good governance principles do not include which of the following?

Answer 16

Management and those charged with governance will be kept

Separate

Question 17

Regarding fair value measurements: The auditor should evaluate the sufficiency and competence of the audit evidence obtained from auditing…2

Answer 17

1 Fair value measurements and disclosures

2 consistency of FV measurement evidence with other audit
evidence obtained and evaluated during the audit

Question 18

To participate in the issuance of any report of the issuer, public accounting firms must…3

Answer 18

1 register with PCAOB

2 sign a consent statement

3 comply with request for testimony or production of documents

Question 19

PCAOB Rule 3100 requires that public accounting firms comply with all applicable…

Answer 19

Auditing and related professional practice standards

Question 20

Lead schedules are part of…

Answer 20

An auditor’s work papers

Question 21

Lead schedules are set up for…

Answer 21

Groups of a smaller client’s accounts that will be combined into
Once account for financial statement reporting

Question 22

A lead schedule can be prepared for a client’s…

Answer 22

Subsidiary accounts receivable

Question 23

A lead schedule can be prepared for a client’s subsidiary accounts receivable, these are reported only as…

Answer 23

A single account receivable figure, not listed by customer name
And balance

Question 24

Lead schedules contain information from the client’s…

Answer 24

General ledger

Question 25

In creating lead schedules for an audit engagement, a CPA often uses automated work paper software. What client information is needed to begin this process?

General ledger information such as…3

Answer 25

1 account numbers

2 prior year account balances

3 current year unadjusted information

Question 26

The nature of the walk through is meant to help the auditor determine…2

Answer 26

1 if a necessary control is missing or ineffective

2 different types of significant transactions handled by the process

Question 27

The nature of the walk through is meant to help the auditor…

Answer 27

Understand the full process and determine effectiveness of controls

Question 28

An auditor is not expected to perform a walk through of each and every transaction type unless…

Answer 28

All controls are deemed ineffective

Question 29

During a walk though, the auditor questions the company’s personnel about…

Answer 29

Their understanding of what is required by the company’s

prescribed procedures and controls

Question 30

Probing questions that go beyond a narrow focus on the single transaction used as the basis for the walk through allow the auditor to gain an understanding of…

Answer 30

Different types of significant transactions handled by the process