129a midterm 2 - Chapter 6 1 The auditor's best defense when material misstatements are not uncovered is to have conducted the audit A in accordance

129a midterm 2 - Chapter 6 1 The auditor's best defense...

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Chapter 6 1) The auditor's best defense when material misstatements are not uncovered is to have conducted the audit: A) in accordance with generally accepted auditing standards. B) as effectively as reasonably possible. C) in a timely manner. D) only after an adequate investigation of the management team. 2) An audit must be performed with an attitude of professional skepticism. Professional skepticism consists of two primary components: a questioning mind and: 3) Which of the following is not one of the reasons that auditors provide only reasonable assurance on the financial statements? 4) Which of the following statements is the most correct regarding errors and fraud? 5) When an auditor believes that an illegal act may have occurred, the auditor should first: A) obtain an understanding of the nature and circumstances of the act. B) consult with legal counsel or others knowledgeable about the illegal act. C) discuss the matter with the audit committee. D) withdraw from the engagement. 6) The auditor has no responsibility to plan and perform the audit to obtain reasonable assurance that misstatements, whether caused by errors or fraud, that are not ________ are detected. 7) Fraudulent financial reporting is most likely to be committed by whom?
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