Auditing Test #4 and Test #5 - Test #4 Chapters 17 - 18...

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Test #4 Chapters 17 - 18 Review of attempt 1 Started on Saturday, April 23, 2011, 01:38 PM Completed on Saturday, April 23, 2011, 03:14 PM Time taken 1 hour 35 mins Grade 46 out of a maximum of 50 ( 92 %) Question 1 Marks: 2 When are an auditor's reporting responsibilities not met by attaching an explanation of the circumstances and a disclaimer of opinion to the client's financial statement? Choose one answer. a. When the auditor believes the financial statements are misleading b. When the auditor was unable to observe the taking of the physical inventory c. When the auditor is uncertain about the outcome of a material uncertainty d. When the auditor has performed insufficient auditing procedures to express an opinion Incorrect Marks for this submission: 0/2. Question 2 Marks: 2 For which of the following matters should an auditor obtain written management representations? Choose one answer. a. Management's cost-benefit justifications for not correcting internal control weaknesses b. Management's knowledge of future plans that may affect the price of the entity's stock c. Management's compliance with contractual agreements that may affect the financial statements d. Management's acknowledgment of its responsibility for employees' violations of laws Correct Marks for this submission: 2/2. Question 3 Marks: 2 An auditor must disclaim an opinion when the auditor lacks independence. Answer: True False Correct Marks for this submission: 2/2. Question 4 Marks: 2
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When considering the use of management's written representations as audit evidence about the completeness assertion, an auditor should understand that such representations Choose one answer. a. Complement, but do not replace, substantive procedures designed to support the assertion b. Constitute sufficient evidence to support the assertion when considered in combination with reliance on internal controls c. Are not part of the evidential matter considered to support the assertion d. Replace reliance on internal controls as evidence to support the assertion Correct Marks for this submission: 2/2. Question 5 Marks: 2 A basic assumption that underlies financial reporting is that an entity will continue as a going concern. Answer: True False Correct Marks for this submission: 2/2. Question 6 Marks: 2 The predecessor auditor, after properly communicating with the successor auditor, has reissued a report because the audit client desires comparative financial statements. The predecessor auditor's report should make Choose one answer. a. No reference to the report or the work of the successor auditor b. Reference to the work of the successor auditor in the scope paragraph c. Reference to both the work and the report of the successor auditor in the opinion paragraph d. Reference to the report of the successor auditor in the scope paragraph Correct Marks for this submission: 2/2. Question 7
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Auditing Test #4 and Test #5 - Test #4 Chapters 17 - 18...

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