PRACTICE TESTS V1 Flashcards
When companies use information technology IT extensively, evidence maybe available only in electronic form. What is an auditor’s best course of action in such situations?
Use generalized audit software to extract evidence from client databases.
Use IT doesn’t mean that control risk is high. The auditor need to evaluate the client’s control first to know.
Under GAAS, when the auditor is not independent but is required by law or regulation to report on the F.S, the auditor’s report should disclaim an opinion and should
state that” The Auditor is NOT independent”.
NO REQUIRE to provide reason for lack of independence. Thich thi provide, ko thi thoi.
which of the following procedures would an auditor most likely perform during an audit engagement’ overall review stage in formulating an opinion on an entity’s financial statements?
Consider whether the results of audit procedures affect the assessment of the risk of material misstatement due to fraud
Taylor is an employee of Green Solution CPA, is asked to express an opinion on Green Solution’s stockholders’ equity. According to U.S auditing standards, Leah may accept this engagement only if
Leah also audits Green Solution’s balance sheet.
Which of the following statements is most accurate regarding audit documentation requirements?
The auditor should document findings that could result in a modification of the auditor’s report.
Oral explainations DO not represent adequate support for the work the auditor performed or conclusions the auditor reached.
Which of the following auditing procedures assist an auditor in ID related party transactions?
Reviewing confirmations of loans receivable and payable for indications of guarantees.
B/C guarantees are commonly provided by or for related parties.
Which of the following would not represent audit evidence obtained through the auditor’s direct personal knowledge?
Accounts payable confirmations are sent out by and returned to the auditor.
That’s is external evidence which is considered the second most reliable evidence. An auditor’s direct personal knowledge ( obtained through examination, inspection, re-computation, observation) is the most reliable form of evidence.
bang chung ben ngoai la manh nhi, bang chung manh nhat la tu su hieu biet cua auditor bang nhieu cach nhu kiem tra, soi moi, dom ngo, tinh toan lai.
Subsequently discovered facts that lead to a change in an audit opinion may be presented in
In an Emphasis of matter paragraph or Other-matter paragraph.
Which of the following correctly matches a factor with the related internal control component?
The internal audit function is part of Monitoring.
Reading the proper monetary value of transaction belong to Info and Communication
Participation of the audit committee belong to Control Environment
HR policies and practices belong to Control Environment
Which of the following is Not a reason an auditor may apply audit data analytic (ADAs) when concluding an audit?
To verify the assertions of accuracy and occurrence for all material transactions.
Cai do thuoc ve substantive test KO phai phan tich du lieu-data analytic.
A client changes from FIFO to LIFO for accounting for inventory and appropriately discloses the change in the footnotes. This change does not have a material effect on the F.S in the current year but the change is expected to have a material effect in later years. In the current year auditor’s report, the auditor should:
Issue an unmodified opinion.
Khi nao add change in Emphasis of matter paragraph.
1/ khi co su thay doi quan trong trong accounting principle cua nam do
2/ dung khuon kho dac biet( special purpose framework)
the auditor’s risk assessment affects the nature, extent, and timing of audit procedures, but does not determine the relevance of audit evidence.
đánh giá rủi ro của kiểm toán viên ảnh hưởng đến nội dung, phạm vi và lịch trình của các thủ tục kiểm toán, nhưng không quyet định tính thích hợp của bằng chứng kiểm toán.
BANG CHUNG KIEM TOAN KO phu thuoc DANH GIA RUI RO
PCAOP standards state that the relevance of audit evidences depends on:
1. Whether the audit procedure is designed to directly test an assertion
2. Whether the audit procedure is designed to test for an understatement or overstatement.
3. The timing of the audit procedure.
which effect of an increase in the risk of material misstatement on detection risk and the extend of substantive procedures?
An increase in the RMM will result a decrease in detection risk and increase the extent of substantive procedures. The greater RMM requires more persuasive evidence, a larger sample size, and/or a shift from interim to year-end testing.
Risk assessments procedures to obtain an understanding of the entity include
1/ Inquires of management
2/ Analytics
3/ Observation and inspection, such as walkthroughs
In assessing control risk, an auditor ordinarily selects from a variety of techniques, including:
Tests of controls used in assessing control risk ordinarily include:
1/ Inquiry
2/ Inspection
3/ Observation
4/ Reperformance of the application of the policy or procedure by the auditor.
