chapter 11 - completing the audit well
answered already passed
D) Subsequently discovered facts - correct answer ✔✔1) Which of the following events or
activities may occur following the audit report release date?
A) Interim testing
B) Roll-forward work
C) Subsequent events
D) Subsequently discovered facts
C) beginning of the year under audit; date of the financial statements - correct answer ✔✔2)
Interim testing normally occurs between the ________ and the ________.
A) beginning of the year under audit; audit report release date
B) date of the financial statements; audit report release date
C) beginning of the year under audit; date of the financial statements
D) end of the year under audit; date of the auditors' report
D) date of interim work; date of the auditors' report - correct answer ✔✔3) Roll-forward work
normally occurs between the ________ and the ________.
A) beginning of the year under audit; audit report release date
B) date of the financial statements; audit report release date
C) beginning of the year under audit; date of the financial statements
D) date of interim work; date of the auditors' report
,A) Obtaining evidence about assertions related to account balances or classes of transactions -
correct answer ✔✔4) For which of the following objectives would auditors be least likely to use
analytical procedures near the end of the audit?
A) Obtaining evidence about assertions related to account balances or classes of transactions
B) Evaluating the adequacy of evidence gathered in response to unexpected account balances
C) Identifying unusual or unexpected account balances or relationships among account balances
that were not previously identified during the audit
D) Evaluating the adequacy of evidence gathered in response to unexpected relationships
among account balances
C) Evaluating the reasonableness of management's estimates - correct answer ✔✔5) Which of
the following best describes the auditors' responsibility with respect to management's
estimates?
A) Verifying the mathematical accuracy of management estimates
B) Assessing the likelihood that actual results will be consistent with management's estimates
C) Evaluating the reasonableness of management's estimates
D) Identifying how the failure of the entity to achieve management's estimates will influence
users' decisions
A) Current-year recorded (unaudited) balances - correct answer ✔✔6) Which of the following
would not ordinarily be considered when using analytical procedures to verify the overall
reasonableness of revenue and expense accounts?
A) Current-year recorded (unaudited) balances
B) Expected balances using a statistical analysis or relationships among accounts
C) Internal budgets and reports
D) Prior-year balances
C) These accounts may represent attempts of earnings management. - correct answer ✔✔7)
Why should auditors be particularly concerned with "miscellaneous," "other," and "clearing"
accounts classified as revenues or expenses?
, A) These accounts are likely to relate to going-concern matters.
B) These accounts are often more difficult to audit using normal substantive procedures.
C) These accounts may represent attempts of earnings management.
D) These accounts are likely to require the assistance of a specialist.
D) Scanning accounts for unusual items - correct answer ✔✔8) Which of the following is the
most effective method of identifying potential earnings management attempts?
A) Analytical procedures
B) Detailed substantive procedures
C) Inquiry of client management and key financial personnel
D) Scanning accounts for unusual items
C) obtaining responses to an attorney letter. - correct answer ✔✔9) An important method used
by auditors to learn of material contingencies is
A) examining documents in the client's possession concerning contingencies.
B) inquiring and discussing them with management.
C) obtaining responses to an attorney letter.
D) confirming accounts receivable with the client's customers.
D) Performing analytical procedures - correct answer ✔✔10) Which of the following procedures
is not used in auditors' examination of litigation, claims, and assessments?
A) Obtaining a description and evaluation of litigation, claims, and assessments from
management
B) Examining documentary evidence regarding litigation, claims, and assessments
C) Reading minutes of meetings of stockholders, directors, and appropriate committees
D) Performing analytical procedures
answered already passed
D) Subsequently discovered facts - correct answer ✔✔1) Which of the following events or
activities may occur following the audit report release date?
A) Interim testing
B) Roll-forward work
C) Subsequent events
D) Subsequently discovered facts
C) beginning of the year under audit; date of the financial statements - correct answer ✔✔2)
Interim testing normally occurs between the ________ and the ________.
A) beginning of the year under audit; audit report release date
B) date of the financial statements; audit report release date
C) beginning of the year under audit; date of the financial statements
D) end of the year under audit; date of the auditors' report
D) date of interim work; date of the auditors' report - correct answer ✔✔3) Roll-forward work
normally occurs between the ________ and the ________.
A) beginning of the year under audit; audit report release date
B) date of the financial statements; audit report release date
C) beginning of the year under audit; date of the financial statements
D) date of interim work; date of the auditors' report
,A) Obtaining evidence about assertions related to account balances or classes of transactions -
correct answer ✔✔4) For which of the following objectives would auditors be least likely to use
analytical procedures near the end of the audit?
A) Obtaining evidence about assertions related to account balances or classes of transactions
B) Evaluating the adequacy of evidence gathered in response to unexpected account balances
C) Identifying unusual or unexpected account balances or relationships among account balances
that were not previously identified during the audit
D) Evaluating the adequacy of evidence gathered in response to unexpected relationships
among account balances
C) Evaluating the reasonableness of management's estimates - correct answer ✔✔5) Which of
the following best describes the auditors' responsibility with respect to management's
estimates?
A) Verifying the mathematical accuracy of management estimates
B) Assessing the likelihood that actual results will be consistent with management's estimates
C) Evaluating the reasonableness of management's estimates
D) Identifying how the failure of the entity to achieve management's estimates will influence
users' decisions
A) Current-year recorded (unaudited) balances - correct answer ✔✔6) Which of the following
would not ordinarily be considered when using analytical procedures to verify the overall
reasonableness of revenue and expense accounts?
A) Current-year recorded (unaudited) balances
B) Expected balances using a statistical analysis or relationships among accounts
C) Internal budgets and reports
D) Prior-year balances
C) These accounts may represent attempts of earnings management. - correct answer ✔✔7)
Why should auditors be particularly concerned with "miscellaneous," "other," and "clearing"
accounts classified as revenues or expenses?
, A) These accounts are likely to relate to going-concern matters.
B) These accounts are often more difficult to audit using normal substantive procedures.
C) These accounts may represent attempts of earnings management.
D) These accounts are likely to require the assistance of a specialist.
D) Scanning accounts for unusual items - correct answer ✔✔8) Which of the following is the
most effective method of identifying potential earnings management attempts?
A) Analytical procedures
B) Detailed substantive procedures
C) Inquiry of client management and key financial personnel
D) Scanning accounts for unusual items
C) obtaining responses to an attorney letter. - correct answer ✔✔9) An important method used
by auditors to learn of material contingencies is
A) examining documents in the client's possession concerning contingencies.
B) inquiring and discussing them with management.
C) obtaining responses to an attorney letter.
D) confirming accounts receivable with the client's customers.
D) Performing analytical procedures - correct answer ✔✔10) Which of the following procedures
is not used in auditors' examination of litigation, claims, and assessments?
A) Obtaining a description and evaluation of litigation, claims, and assessments from
management
B) Examining documentary evidence regarding litigation, claims, and assessments
C) Reading minutes of meetings of stockholders, directors, and appropriate committees
D) Performing analytical procedures
