Audit TB Chapter 5
Eleven. To be powerful, analytical tactics done close to the quit of the audit should be
executed through
A. The partner acting the fine assessment of the audit.
B. A beginning workforce accountant who has had no different paintings related to the
engagement.
C. A manager or associate who has a comprehensive expertise of the purchaser's business
and industry.
D. The CPA firm's best manage supervisor. - ANS-C. A manager or associate who has a
complete information of the client's enterprise and enterprise.
12. The components of the threat of misstatement are:
Inherent Risk: Yes, Yes, Yes, No
Control Risk: Yes, Yes, No, Yes
Detection Risk: Yes, No, No, Yes
A. Option A
B. Option B
C. Option C
D. Option D - ANS-B. Option B: Yes, Yes, No
13. Financial assertion assertions are established for training of transactions
Account Balances: Yes, Yes, No, No
Disclosures: Yes, No, Yes, No
A. Option A
B. Option B
C. Option C
D. Option D - ANS-A. Option A: Yes, Yes
14. Further audit procedures consist of:
Risk Assessment Procedures: Yes, Yes, No, No
Test of Controls: Yes, No, Yes, No
A. Option A
B. Option B
C. Option C
D. Option D - ANS-C. Option C: No, Yes
, 15. Assertions which have a significant concerning whether an account stability, transaction
class or disclosure within reason said are known as:
A. Appropriate assertions.
B. Sufficient assertions.
C. Relevant assertions.
D. Reliable assertions. - ANS-C. Relevant assertions.
16. Which of the subsequent is not an assertion referring to instructions of transactions?
A. Accuracy.
B. Sufficiency.
C. Cutoff.
D. Classification. - ANS-B. Sufficiency.
17. Which of the subsequent is needed documentation in an audit?
A. A list of major debts.
B. A flowchart of the client's employer.
C. A written audit software.
D. A memo setting forth the scope of the audit. - ANS-C. A written audit program.
18. Which of the subsequent isn't taken into consideration to be an analytical process?
A. Comparisons of economic assertion quantities with source files.
B. Comparisons of financial announcement amounts with nonfinancial information.
C. Comparisons of financial assertion amounts with budgeted amounts.
D. Comparisons of financial announcement quantities with similar earlier 12 months
quantities. - ANS-A. Comparisons of economic assertion quantities with source files.
19. An auditor plans to apply great tests to the details of asset and liability accounts as of an
meantime date instead of as of the stability sheet date. The auditor must be conscious that
this exercise
A. Eliminates using positive statistical sampling techniques that might otherwise be
available.
B. Presumes that the auditor will reperform the checks as of the balance sheet date.
C. Should be mainly taken into consideration whilst there are rapidly changing financial
conditions.
D. Potentially increases the danger that mistakes that exist on the balance sheet date will no
longer be detected. - ANS-D. Potentially will increase the threat that mistakes that exist on
the stability sheet date will no longer be detected.
20. An auditor in comparison the current-year gross margin with the previous-12 months
gross margin to determine if fee of income is reasonable. What sort of audit method turned
into accomplished?
A. Test of transactions.
B. Analytical tactics.
C. Test of controls.
D. Test of info. - ANS-B. Analytical processes.
21. The inspection of a seller's invoice through the auditors is:
Eleven. To be powerful, analytical tactics done close to the quit of the audit should be
executed through
A. The partner acting the fine assessment of the audit.
B. A beginning workforce accountant who has had no different paintings related to the
engagement.
C. A manager or associate who has a comprehensive expertise of the purchaser's business
and industry.
D. The CPA firm's best manage supervisor. - ANS-C. A manager or associate who has a
complete information of the client's enterprise and enterprise.
12. The components of the threat of misstatement are:
Inherent Risk: Yes, Yes, Yes, No
Control Risk: Yes, Yes, No, Yes
Detection Risk: Yes, No, No, Yes
A. Option A
B. Option B
C. Option C
D. Option D - ANS-B. Option B: Yes, Yes, No
13. Financial assertion assertions are established for training of transactions
Account Balances: Yes, Yes, No, No
Disclosures: Yes, No, Yes, No
A. Option A
B. Option B
C. Option C
D. Option D - ANS-A. Option A: Yes, Yes
14. Further audit procedures consist of:
Risk Assessment Procedures: Yes, Yes, No, No
Test of Controls: Yes, No, Yes, No
A. Option A
B. Option B
C. Option C
D. Option D - ANS-C. Option C: No, Yes
, 15. Assertions which have a significant concerning whether an account stability, transaction
class or disclosure within reason said are known as:
A. Appropriate assertions.
B. Sufficient assertions.
C. Relevant assertions.
D. Reliable assertions. - ANS-C. Relevant assertions.
16. Which of the subsequent is not an assertion referring to instructions of transactions?
A. Accuracy.
B. Sufficiency.
C. Cutoff.
D. Classification. - ANS-B. Sufficiency.
17. Which of the subsequent is needed documentation in an audit?
A. A list of major debts.
B. A flowchart of the client's employer.
C. A written audit software.
D. A memo setting forth the scope of the audit. - ANS-C. A written audit program.
18. Which of the subsequent isn't taken into consideration to be an analytical process?
A. Comparisons of economic assertion quantities with source files.
B. Comparisons of financial announcement amounts with nonfinancial information.
C. Comparisons of financial assertion amounts with budgeted amounts.
D. Comparisons of financial announcement quantities with similar earlier 12 months
quantities. - ANS-A. Comparisons of economic assertion quantities with source files.
19. An auditor plans to apply great tests to the details of asset and liability accounts as of an
meantime date instead of as of the stability sheet date. The auditor must be conscious that
this exercise
A. Eliminates using positive statistical sampling techniques that might otherwise be
available.
B. Presumes that the auditor will reperform the checks as of the balance sheet date.
C. Should be mainly taken into consideration whilst there are rapidly changing financial
conditions.
D. Potentially increases the danger that mistakes that exist on the balance sheet date will no
longer be detected. - ANS-D. Potentially will increase the threat that mistakes that exist on
the stability sheet date will no longer be detected.
20. An auditor in comparison the current-year gross margin with the previous-12 months
gross margin to determine if fee of income is reasonable. What sort of audit method turned
into accomplished?
A. Test of transactions.
B. Analytical tactics.
C. Test of controls.
D. Test of info. - ANS-B. Analytical processes.
21. The inspection of a seller's invoice through the auditors is:
