Midterm Exam Link

Midterm Exam Link - Midterm Exam Link: May 14-May 17...

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Midterm Exam Link: May 14-May 17 Description There are total 50 multiple-choice questions on this midterm exam covering from ch.1 through ch.4 as previously announced several times. Please complete and submit your answers prior to Noon May 17 Mon. exam closing time. The maximum time allowed for this exam is 120 min. This assessment is worth 100 points. Note: Correct answers appear in Blue . Incorrect answers and skipped questions appear in Red after 'Your response'. 1. Based on audit evidence gathered and evaluated, an auditor decides to increase the assessed level of control risk from that originally planned. To achieve an overall audit risk level that is substantially the same as the planned audit risk level, the auditor would (2 points) Your response: b. Decrease detection risk. (You answered correctly!) Feedback : AICPA 2 points awarded. The correct answer is: a. Decrease substantive testing. b. Decrease detection risk. c. Increase inherent risk. d. Increase materiality levels. 2. To be proficient as an auditor, a person must first be able to accomplish which of these tasks in a decision-making process? (2 points) Your response: b. Formulate evidence-gathering procedures (audit plan) designed to obtain sufficient, competent evidence about assertions management makes in financial statements and notes.
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Feedback : Original 0 points awarded. The correct answer is: a. Identify audit evidence relevant to the verification of assertions management makes in its unaudited financial statements and notes. b. Formulate evidence-gathering procedures (audit plan) designed to obtain sufficient, competent evidence about assertions management makes in financial statements and notes. c. Recognize the financial assertions made in management's financial statements and footnotes. d. Evaluate the evidence produced by the performance of procedures and decide whether management's assertions conform to generally accepted accounting principles and reality. 3. Which of the following is not required by SAS No. 99, "Consideration of Fraud in a Financial Statement Audit"? (2 points) Your response: a. Conduct a continuing assessment of the risks of material misstatement due to fraud throughout the audit. Feedback : AICPA 0 points awarded. The correct answer is: a. Conduct a continuing assessment of the risks of material misstatement due to fraud throughout the audit. b. Conduct a discussion by the audit team of the risks of material misstatement due to fraud. c. Conduct the audit with professional skepticism, which includes an attitude that assumes balances are incorrect until verified by the auditor.
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d. Conduct inquiries of the audit committee as to their views about the risks of fraud and their knowledge of any fraud or suspected fraud. 4.
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Midterm Exam Link - Midterm Exam Link: May 14-May 17...

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