auditing-assignment-two-q-only (1)

auditing-assignment-two-q-only (1) - Auditing Assignment...

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Auditing Assignment Two (2) Answer all questions; MCQ: One (1) mark each while short questions marks are indicated next to the questions. Total marks for this assignment is 65 marks 1. _____________ is an intentional misstatement or omission of amounts or disclosures with the intent to deceive others. a. Fraudulent financial reporting b. Misappropriation of assets c. An error d. None of the above is correct 2. Which of the following is a category of fraud? a. Fraudulent financial reporting b. Misappropriation of assets c. a and b d. Neither a nor b 3. Fraudulent financial reporting may be accomplished through the manipulation of a. assets b. revenues c. liabilities d. all of the above 4. Which of the following is a factor that relates to incentives or pressures to commit fraudulent financial reporting? a. Significant accounting estimates involving subjective judgments. b. Excessive pressure for management to meet debt repayment requirements. c. Management’s practice of making overly aggressive forecasts. d. High turnover of accounting, internal audit and information technology staff. 5. Which of the following is a factor that relates to incentives to misappropriate assets? a. Significant accounting estimates involving subjective judgments. b. Significant personal financial obligations. c. Management’s practice of making overly aggressive forecasts. d. High turnover of accounting, internal audit and information technology staff. 6. Fraud awareness training should be a. broad and all-encompassing b. extensive and include details for all functional areas c. specifically related to the employee’s job responsibility d. none of the above 7. IT has several significant effects on an organization. Which of the following would not be important from an auditing perspective? a. Organizational changes. b. The visibility of information. c. The potential for material misstatement. d. None of the above; i.e., they are all important.
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8. Which of the following are not an application control? a. Processing controls. b. Output controls. c. Hardware controls. d. Input controls. 9. General controls include all of the following except: a. Systems development. b. Online security. c. Processing controls. d. Hardware controls. 10. To obtain evidence that user identification and password controls are functioning, an auditor would most likely a. attempt to sign on to the system using invalid user identifications and passwords. b. write a computer program that simulates the logic of the client’s access control software. c. extract a random sample of processed transactions and ensure that the transactions were appropriately authorized. d.
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auditing-assignment-two-q-only (1) - Auditing Assignment...

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