Pass Key Y

Question 1

Auditor should obtain sufficient knowledge of entities information system relevant to financial reporting to understand

Answer 1

Accounting estimate s preparation

Question 2

Why properly designed audit can not detect material misstatement?

Answer 2

Audit procedures effective for unintentional misstatement may not be effective for Misstatement consialed through collusion

Question 2

Why properly designed audit can not detect material misstatement?

Answer 2

Audit procedures effective for unintentional misstatement may not be effective for Misstatement consialed through collusion

Question 3

In Auditing computerized payroll transactions auditor would least likely to use test data to test Control conserning

Answer 3

Control and distribution of unclaimed checks

Question 4

What paragraphs of nonissuer report should refer to GAAS and what to GAAP

Answer 4

GAAS -Auditor’s responsibility

GAAP-Opinion

Question 5

Incorrect statement regarding auditor’s responsibility for compliance with laws and regulations.

Answer 5

The auditor is expected to detect noncompliance with law and regulations

Question 6

Incorrect statement regarding auditor’s responsibility for compliance with laws and regulations.

Answer 6

The auditor is expected to detect noncompliance with law and regulations

Question 7

Testing long term investments

Answer 7

Auditor will use procedures to assure Completeness