Practice exam 1 - Select the BEST answer to each question from those given Each Problem is worth 4 points 1 The audit objective that all

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Select the  BEST  answer to each question from those given.  Each Problem is worth 4 points. 1. The audit objective that all transactions and accounts that should be presented in the financial statements are included is related to which assertion? A) existence B) rights and obligations C) completeness D) valuation Answer: C 2. The essential purpose of the audit function is to A) detect fraud. B) examine individual transactions so that the auditor may certify as to their validity. C) determine whether the client's financial statement assertions are fairly stated. D) assure the consistent application of correct accounting procedures Answer: C 3. In performing an attestation engagement, a CPA typically A) supplies litigation support services. B) assesses control risk at a low level. C) expresses a conclusion on subject matter or an assertion about the subject matter. D) provides management consulting advice.
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Answer: C 4. Control risk is A) the probability that a material misstatement could occur and not be prevented or detected by the company's internal control structure policies and procedures. B) the probability that a material misstatement could occur and not be detected by the auditor's audit procedures. C) the risk that the auditor will not be able to complete the audit on a timely basis. D) the risk that the auditor will not properly control the staff on the audit engagement. Answer: A 5. The independent auditors' audit program prepared prior to the start of fieldwork is appropriately considered documentation of A) planning. B) supervision. C) information evaluation. D) quality assurance. Answer: A 6. Which of the following statements is generally correct about the appropriateness of audit evidence?
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A) The auditor's direct personal knowledge, obtained through observation and inspection, is more persuasive than information obtained indirectly from independent outside sources. B) To be reliable, audit evidence must be either valid or relevant, but need not be both. C) Client accounting data alone may be considered sufficient appropriate audit evidence to issue an unqualified opinion on client financial statements. D) Appropriateness of audit evidence refers to the amount of corroborative evidence to be obtained. Answer: A
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This note was uploaded on 06/11/2008 for the course ACCT 4013 taught by Professor Pitman,m during the Spring '08 term at The University of Texas at San Antonio- San Antonio.

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Practice exam 1 - Select the BEST answer to each question from those given Each Problem is worth 4 points 1 The audit objective that all

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