ACCOUNTING
ACC490 Final Exam
1. Most audit work in a financial statement audit consists of obtaining and evaluating evidence about
2. The existence of audit risk is recognized by the statement in the auditor's standard report that the
3. Analytical procedures enable the internal auditor to predict the balance or quantity of an item. Information to develop this estimate can be obtained by all of the following except
4. Analytical Procedures can be best categorized as
5. The risk that an auditor's procedures will lead to the conclusion that a material misstatement does not exist in an account balance when, in fact, such misstatement does exist is
6. Inherent risk and control risk differ from detection risk in that they
7. The acceptable level of detection risk is inversely related to the
8. As the acceptable level of detection risk decreases, an auditor may
9. Holding other planning considerations equal, a decrease in the amount of misstatements in a class of transactions that an auditor could tolerate most likely would cause the auditor to
10. Which of the following would an auditor most likely use in determining the auditor's preliminary judgment about materiality?
11. Which of the following is a false statement about materiality?
12. The objective of tests of details of transactions performed as substantive tests is to
13. In testing the existence assertion for an asset, an auditor ordinarily works from the
14. An auditor observes the mailing of monthly statements to a client's customers and reviews evidence of follow-up on errors reported by the customers. This test of controls most likely is performed to support management's financial statement assertion(s) of
15. Which of the following statements reflects an auditor's responsibility for detecting errors and fraud?
16. Which of the following circumstances most likely would cause an auditor to consider whether material misstatements exist in an entity's financial statements?
17. The established scope of the engagement should be sufficient to satisfy the objectives of the engagement. When developing the objectives of the engagement, the internal auditor should consider the
18. Which of the following is the best explanation of the difference, if any, between engagement objectives and procedures?
19. In planning an engagement, the internal auditor should establish objectives and procedures to address the risk associated with the activity. Risk is defined as
20. Writing an engagement work program occurs at which stage of the engagement?
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