1
Chapter 1- Audit Theory and Practice |
UPDATE|COMPREHENSIVE MOST TESTED
QUESTIONS AND VERIFIED
SOLUTIONS|GET IT 100% ACCURATE!!
1. Which the following is not a reason for a public company to receive an audit?
a.
Potential bias in providing information.
b.
Closeness between a user and the organization.
c.
Complexity of the processing systems.
d.
Remoteness between a user and the organization. - (ANSWER)Closeness between
a user and the organization
2. What is the term used to describe a systematic process of objectively obtaining
evidence regarding assertions about economic actions and events to ascertain the
degree of correspondence between those assertions and established criteria and
communicating the results to interested users?
a.
Internal audit.
b.
Financial audit.
,2
c.
External audit.
d.
Integrated audit - (ANSWER)External Audit
3. An Integrated Audit Report provides opinion(s) on which of the following?
a.
The financial statements.
b.
Internal controls.
c.
Both financial statements and internal controls.
d.
Neither financial statements or internal controls. - (ANSWER)Both financial
statements and internal controls.
Which one of the following is not a key attribute needed to perform an audit?
Cant say I know the actual answer but almost positive its not B because they talk
about independence being one of the most important aspects. I thought so too,
but after further thinking, the question doesn't state an external audit, an internal
company could perform an audit without indpependence. Good Call
a.
Subject matter knowledge.
, 3
b.
Independence.
c.
Established criteria or standards.
d.
Accounting skills. - (ANSWER)Accounting skills
5. What should internal controls be design to do?
a.
Detect errors.
b.
Detect and prevent errors.
c.
Prevent errors.
d.
Eliminate the possibility of fraud. - (ANSWER)Detect and prevent errors.
6. Which one of the following is not an example of an independence violation?
a.
Audit partner's spouse is the CFO at a client.
b.
Audit firm accepts money for conducting the audit.
Chapter 1- Audit Theory and Practice |
UPDATE|COMPREHENSIVE MOST TESTED
QUESTIONS AND VERIFIED
SOLUTIONS|GET IT 100% ACCURATE!!
1. Which the following is not a reason for a public company to receive an audit?
a.
Potential bias in providing information.
b.
Closeness between a user and the organization.
c.
Complexity of the processing systems.
d.
Remoteness between a user and the organization. - (ANSWER)Closeness between
a user and the organization
2. What is the term used to describe a systematic process of objectively obtaining
evidence regarding assertions about economic actions and events to ascertain the
degree of correspondence between those assertions and established criteria and
communicating the results to interested users?
a.
Internal audit.
b.
Financial audit.
,2
c.
External audit.
d.
Integrated audit - (ANSWER)External Audit
3. An Integrated Audit Report provides opinion(s) on which of the following?
a.
The financial statements.
b.
Internal controls.
c.
Both financial statements and internal controls.
d.
Neither financial statements or internal controls. - (ANSWER)Both financial
statements and internal controls.
Which one of the following is not a key attribute needed to perform an audit?
Cant say I know the actual answer but almost positive its not B because they talk
about independence being one of the most important aspects. I thought so too,
but after further thinking, the question doesn't state an external audit, an internal
company could perform an audit without indpependence. Good Call
a.
Subject matter knowledge.
, 3
b.
Independence.
c.
Established criteria or standards.
d.
Accounting skills. - (ANSWER)Accounting skills
5. What should internal controls be design to do?
a.
Detect errors.
b.
Detect and prevent errors.
c.
Prevent errors.
d.
Eliminate the possibility of fraud. - (ANSWER)Detect and prevent errors.
6. Which one of the following is not an example of an independence violation?
a.
Audit partner's spouse is the CFO at a client.
b.
Audit firm accepts money for conducting the audit.
