408t2S19 with answers.pdf - Accounting 408 Exam 2 Chapters 3 4 5 6 E F Spring 2019 Name Row Multiple Choice Questions(2 points each 100 points total

408t2S19 with answers.pdf - Accounting 408 Exam 2 Chapters...

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1 Accounting 408 Name __________________________ Exam 2, Chapters 3, 4, 5, 6, E, F Spring 2019 Row _______ Multiple Choice Questions. (2 points each, 100 points total) Read each question carefully and indicate the one best answer to each question by placing a mark in the appropriate space on the answer sheet. 1.An auditor concludes that a client has failed to comply with a law that has not been properly accounted for or disclosed. The auditor should withdraw from the engagement if the a.Auditor is precluded from obtaining sufficient appropriate evidence about the noncompliance.b.Noncompliance has an effect on the financial statements that is both material and direct. c.Auditor cannot reasonably estimate the effect of the noncompliance on the financial statements. d.The effect of the noncompliance on the financial statements is material, and the client refuses to accept the auditor’s report as modified for the noncompliance. 2.In every audit, the members of the audit team should discuss the potential for material misstatement due to fraud. This discussion 3. Auditing standards require that auditors be aware of relevant factors relating to fraudulent reporting. Which of the following is a false statement about fraudulent reporting? a. Fraud frequently involves a pressure or an incentive to commit fraud and a perceived opportunity to do so. b . Two types of fraud relevant to the auditor include material misstatements arising from fraudulent financial reporting and material misstatements arising from misappropriation of assets. c . Fraud involves actions of management but excludes the actions of employees or third parties. d . An audit rarely involves the authentication of documentation. Thus, fraud may go undetected by the auditor. 4.An auditor’s consideration of the risk of material misstatement due to fraud and the results of audit tests indicate a significant risk of fraud. The auditor should
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  • Winter '18
  • Jack Armitage

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