Planning

Question 1

Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor auditor regarding

Answer 1

Reasons for the change in auditors

Question 2

The primary purpose of the engagement letter is to

Answer 2

Provide a written record of the scope of services to be provided

Question 3

For all audits, the use of analytical procedures is required at:

Answer 3

The planning phase and in the final review phase. Using analytical procedures as substantive test is optional.

Question 4

The use of primarily substantive audit approach emphasizing detail testing would be most likely to be used in the audit of

Answer 4

Property, plant, and equipment

Question 5

The use of a lower assessed control risk (i.e, test and rely on client controls) approach would be most likely in testing

Answer 5

Sales and receivables, payroll, purchase and payables

Question 6

The auditor is examining the revenues of an NBA basketball franchise whose games are sold out for the entire season. What audit approach would be most efficient?

Answer 6

Primarily substantive using analytical procedures

Question 7

Which of the following portions of an audit may not be performed prior to year-end?

Answer 7

Issue of management letter