CE1 - ACC419 AUDITING THEORY Spring 2010 Class Experience#...

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ACC419 – AUDITING THEORY Spring 2010 Class Experience# 1 (Chapters 1 and 2) Name ___________________________ Section 1 or 2 1. Which of the following best describes the concept of audit risk? A. The risk of the auditor being sued because of association with an audit client B. The risk that the auditor will provide an unqualified opinion on materially misstated financial statements C. The overall risk that a material misstatement exists in the financial statements D. The risk that auditors use audit procedures that are inappropriate 2. For publicly-held companies, the external auditor is required to audit which of the following: A. Budgetary information B. The company's internal controls C. Management forecasts D. Interim financial statements 3. In the context of agency theory, information asymmetry refers to the idea that A. Information can vary in its reliability B. Information can vary in its relevance C. Management has more information about the entity's true financial position than do
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This note was uploaded on 05/30/2010 for the course ACCOUNTING 10S_CBA_AC taught by Professor Magdyfarag during the Spring '10 term at California State University , Monterey Bay.

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CE1 - ACC419 AUDITING THEORY Spring 2010 Class Experience#...

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