ACC 241 Exam 1(100% Accurate)
The risk that the client's financial statements may be materially false and misleading is
referred to as the
information risk. - ANSWERSinformation risk.
The auditor's judgment concerning the overall fairness of the presentation of financial
position, results of operations, and cash flows is applied within the framework of
Generally accepted auditing standards, which include the concept of materiality.
Generally accepted accounting principles. - ANSWERSGenerally accepted accounting
principles.
Which of the following best describes assurance services?
Independent professional services that improve the quality of information for decision
makers. - ANSWERSIndependent professional services that improve the quality of
information for decision makers.
Because of the risk of material misstatement, an audit of financial statements in
accordance with generally accepted auditing standards should be planned and
performed with an attitude of
professional skepticism. - ANSWERSprofessional skepticism.
Procedures that go beyond an audit of financial reports and compliance with laws and
regulations to include economy and efficiency and program results audits are referred to
as
Operational auditing.
Correct Perfomance auditing - ANSWERSPerfomance auditing
The audit objective that all transactions and accounts that should be presented in the
financial statements are included is related to which assertion?
completeness - ANSWERScompleteness
The audit objective that all transactions are recorded in the proper period is related most
closely to which ASB transaction assertion?
Cutoff - ANSWERSCutoff
, The engineering department at Omni Company built a piece of equipment in the
company's own shop for use in the company's operations. The auditor reviewed all work
orders that were capitalized as part of the equipment costs. Which of the following is the
ASB transaction assertion most closely related to the auditor's testing?
Classification - ANSWERSClassification
The audit objective that all the transactions and accounts presented in the financial
statements represent real assets, liabilities, revenues, and expenses is related most
closely to which assertions?
existence or occurrence - ANSWERSexistence or occurrence
In performing an attestation engagement, a CPA typically
expresses a conclusion on subject matter or an assertion about the subject matter. -
ANSWERSexpresses a conclusion on subject matter or an assertion about the subject
matter.
All of the following statements are true regarding generally accepted auditing standards
(GAAS) except
departures from auditing standards that impose presumptively mandatory requirements
on auditors are not permitted under any circumstances.
The primary purpose of the auditors' study of internal control for an entity is to
To provide constructive suggestions to the client for improving its internal control
To report on internal control as required by Auditing Standard No. 5
To identify and detect fraud and irregularities perpetrated by client personnel
To determine the nature, timing, and extent of substantive procedures - ANSWERSTo
determine the nature, timing, and extent of substantive procedures
As it relates to audit evidence, appropriateness refers to the
originality of evidence gathered.
quality of evidence gathered.
quantity of evidence gathered.
timeliness of evidence gathered. - ANSWERSquality of evidence gathered.
The risk that the client's financial statements may be materially false and misleading is
referred to as the
information risk. - ANSWERSinformation risk.
The auditor's judgment concerning the overall fairness of the presentation of financial
position, results of operations, and cash flows is applied within the framework of
Generally accepted auditing standards, which include the concept of materiality.
Generally accepted accounting principles. - ANSWERSGenerally accepted accounting
principles.
Which of the following best describes assurance services?
Independent professional services that improve the quality of information for decision
makers. - ANSWERSIndependent professional services that improve the quality of
information for decision makers.
Because of the risk of material misstatement, an audit of financial statements in
accordance with generally accepted auditing standards should be planned and
performed with an attitude of
professional skepticism. - ANSWERSprofessional skepticism.
Procedures that go beyond an audit of financial reports and compliance with laws and
regulations to include economy and efficiency and program results audits are referred to
as
Operational auditing.
Correct Perfomance auditing - ANSWERSPerfomance auditing
The audit objective that all transactions and accounts that should be presented in the
financial statements are included is related to which assertion?
completeness - ANSWERScompleteness
The audit objective that all transactions are recorded in the proper period is related most
closely to which ASB transaction assertion?
Cutoff - ANSWERSCutoff
, The engineering department at Omni Company built a piece of equipment in the
company's own shop for use in the company's operations. The auditor reviewed all work
orders that were capitalized as part of the equipment costs. Which of the following is the
ASB transaction assertion most closely related to the auditor's testing?
Classification - ANSWERSClassification
The audit objective that all the transactions and accounts presented in the financial
statements represent real assets, liabilities, revenues, and expenses is related most
closely to which assertions?
existence or occurrence - ANSWERSexistence or occurrence
In performing an attestation engagement, a CPA typically
expresses a conclusion on subject matter or an assertion about the subject matter. -
ANSWERSexpresses a conclusion on subject matter or an assertion about the subject
matter.
All of the following statements are true regarding generally accepted auditing standards
(GAAS) except
departures from auditing standards that impose presumptively mandatory requirements
on auditors are not permitted under any circumstances.
The primary purpose of the auditors' study of internal control for an entity is to
To provide constructive suggestions to the client for improving its internal control
To report on internal control as required by Auditing Standard No. 5
To identify and detect fraud and irregularities perpetrated by client personnel
To determine the nature, timing, and extent of substantive procedures - ANSWERSTo
determine the nature, timing, and extent of substantive procedures
As it relates to audit evidence, appropriateness refers to the
originality of evidence gathered.
quality of evidence gathered.
quantity of evidence gathered.
timeliness of evidence gathered. - ANSWERSquality of evidence gathered.
