ADM 3349A Fall 2009 Mid-Term 1 Marking Key

ADM 3349A Fall 2009 Mid-Term 1 Marking Key - 1 Mid-Term...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Mid-Term Examination #1 ADM 3349 A AUDITING THEORY October 9, 2009 Professor: S. Weatherstone INSTRUCTIONS 1. Books and notes are not permitted. 2. Calculators are permitted. 3. Complete all questions. 4. Write in pen. 5. Answer all questions directly on the examination paper. 6. Follow the suggested time frames for each question. Question Marks Suggested Time Grade 1-34 34 34 minutes 35 16 16 minutes 36 10 10 minutes 37 20 20 minutes Total 80 80 minutes 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
NAME: __________________________________________ STUDENT #: ________________________ Statement of Academic Integrity The School of Management does not condone academic fraud, an act by a student that may result in a false academic evaluation of that student or of another student. Without limiting the generality of this definition, academic fraud occurs when a student commits any of the following offences: plagiarism or cheating of any kind, use of books, notes, mathematical tables, dictionaries or other study aid unless an explicit written note to the contrary appears on the exam, to have in his/her possession cameras, radios (radios with head sets), tape recorders, pagers, cell phones, or any other communication device which has not been previously authorized in writing. Statement to be signed by the student: I have read the text on academic integrity and I pledge not to have committed or attempted to commit academic fraud in this examination. Signed:______________________________________ Note: an examination copy or booklet without that signed statement will not be graded and will receive a final exam grade of zero. 2
Background image of page 2
MULTIPLE CHOICE QUESTIONS (34 marks - 34 minutes) Circle the letter corresponding to the best response. 1. After obtaining an understanding of the internal control system and assessing control risk, an auditor decided not to perform additional tests of controls. The auditor most likely concluded that the Source: CPA-Adapted: 5/94, #25 A. Internal control system was properly designed and justifiably may be relied on. B. Evidence obtainable through tests of controls would not support an increased level of control risk. C. Additional evidence to support a further reduction in control risk was not cost-beneficial. D. Assessed level of inherent risk exceeded the assessed level of control risk. 2. While conducting an audit, Larson & Larson Chartered Accountants failed to detect a material misstatement in its client's financial statements. Larson's unqualified opinion was included with the financial statements in a prospectus for a public offering of securities made by the client. Larson knew that its opinion and the financial statements would be used for this purpose. Which of the following statements is correct with regard to a suit against Larson and the client by a purchaser of the securities? A. The purchaser must prove that Larson was negligent in conducting the audit.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 13

ADM 3349A Fall 2009 Mid-Term 1 Marking Key - 1 Mid-Term...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online