Quiz I Review Questions - AC574 Quiz 1 Review Questions:...

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AC574 – Quiz 1 Review Questions: IMPORTANT: Please review the following questions before taking the weekly quiz. 39. (TCO A) Control risk is: a) A risk that a material error in the balance or transaction class will not be prevented or detected. b) The risk that an account or transactions contain material misstatements before the effects or the controls. c) The measure of whether something is significant enough to change an investor's investment decision is a prime consideration in how the audit is conducted. d) The risk that audit procedures will not turn up material error when it exists. e) None of the above. 40. (TCO A) Which statement is false? a) SAS No. 99 indicates that auditors must be skeptical. b) Skepticism is an attitude that includes a questioning mind and a critical assessment of audit evidence. c) SAS No. 99 instructs auditors to question management about possible fraud. d) Tests of controls by auditors are sufficient for auditors to catch fraud. (p. A-14) e) None of the above. 41. (TCO A) Which statement is false regarding SAS No. 99? a) SAS No. 99 places more emphasis on misappropriation of assets. b) SAS No. 82 was replaced by SAS No. 99. (p. A-3) c) Three conditions are generally present when fraud occurs. (p. A-5) d) Fraud is an intentional act that results in a material misstatement in financial statements. (p. A-5)
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Quiz I Review Questions - AC574 Quiz 1 Review Questions:...

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