ACG3141 Study guides, Class notes & Summaries

Chapter 4. Professional Legal Liability/ Chapter 4. Professional Legal Liability. 1. Under Common Law, liability concepts are developed through court decisions based on negligence, gross negligence, or fraud. True False 2. Public confidence is mostly maintained by the public accounting profession through integrity based on personal moral standards and it is reinforced by codes of conduct. True False 3. An individual does not need to agree to uphold the ...

Chapter 12. Auditing Long-Lived Assets, Acquisition, Use, Impairment, and Disposal/ Chapter 12. Auditing Long-Lived Assets: Acquisition, Use, Impairment, and Disposal 1. Long-lived assets only include the tangible assets of an organization. True False 2. Long-lived assets typically represent the smallest single category of assets in many organizations. True False 3. Much of the inherent risk related to long-lived assets is due to the importance of ...

Chapter 9. Auditing the Revenue Cycle/ Chapter 9: Auditing the Revenue Cycle 1. The revenue cycle considered by auditors includes the sales process but not collections. True False 2. The revenue cycle involves the procedures in generating a sales order, shipping the products, recording the transaction and collecting the receivable. True False 3. The shipping department confirms the shipment of goods by completing the packing slip and returning it to ...

Chapter 8. Specialized Audit Tools, Sampling and Generalized Audit Software/ Chapter 8. Specialized Audit Tools: Sampling and Generalized Audit Software 1. Audit sampling implies the gathering of evidence to use as a basis for making valid inferences about the characteristics of the population as a whole without examining every transaction. True False 2. Audit sampling is the application of an audit procedure to less than 100 percent of the items within an ac...

Chapter 14. Completing a Quality Audit/ Chapter 14. Completing a Quality Audit 1. Review activities that are completed towards the end of the audit are quite varied. True False 2. Misstatements that are detected, but individually are not material, should be ignored when determining the appropriate audit report. True False 3. Most audit firms use a schedule to accumulate the known and projected misstatements and the carryover effects of prior-year un...

Chapter 2. The Auditor’s Responsibilities Regarding Fraud and Mechanisms to Address Fraud, Regulation and Corporate Governance

Chapter 11. Auditing Inventory, Goods and Services, and Accounts Payable, The Acquisition and Payment Cycle

Chapter 5. Professional Auditing Standards and the Audit Opinion Formulation Process

Chapter 7. Planning the Audit, Identifying and Responding to the Risks of Material Misstatement