Auditweek4misterm - Week 4 Materiality Risk and Internal Control Midterm Page 1 1(TCO F Which of the following statements is true of a public

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Week 4 : Materiality, Risk, and Internal Control - Midterm Page 1 1.  (TCO F) Which of the following statements is true of a public company's financial statements? (Points : 5)          Sarbanes-Oxley requires only the CEO to certify the financial statements.         Sarbanes-Oxley requires only the CFO to certify the financial statements.         Sarbanes-Oxley requires the CEO and CFO to certify the financial statements.         Sarbanes-Oxley requires neither the CEO nor the CFO to certify the financial statements. 2.  (TCO F) If management insists on financial statement disclosures that the auditor finds unacceptable, the auditor can: Issue an adverse audit report; Issue a qualified audit report  (Points : 5)          Yes; Yes         No; No         Yes; No         No; Yes 3.  (TCO F) Which of the following statements is most correct regarding errors and fraud?  (Points :  5)          An error is unintentional, whereas fraud is intentional.         Fraud occurs more often than errors in financial statements.         Errors are always fraud and fraud is always errors.         Auditors have more responsibility for finding fraud than errors. 4.  (TCO F) The auditor's best defense when material misstatements are not uncovered is to have conducted the audit:  (Points : 5)          in accordance with auditing standards         as effectively and as reasonably possible         in a timely manner         only after an adequate investigation of the management team 5.  (TCO F) The Auditing Standards Board has concluded that analytical procedures are so important that they are required during:  (Points : 5)          planning and test of control phases         planning and completion phases         test of control and completion phases         planning, test of control, and completion phases 6.  (TCO F) An example of a document the auditor receives from the client, but which was prepared by someone outside the client's organization, is a(n):  (Points : 5)          confirmation         sales invoice         vendor invoice         bank reconciliation
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7.  (TCO F) The primary purpose of performing analytical procedures in the planning phase of an audit is to:  (Points : 5)          help the auditor obtain an understanding of the client's industry and business         assess the growing concern assumption         indicate possible misstatements         reduce detailed tests 8.  (TCO F) When the auditor has reason to believe an illegal act has occurred without any
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This note was uploaded on 10/28/2011 for the course AUDIT audit taught by Professor Unknown during the Spring '11 term at Keller Graduate School of Management.

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Auditweek4misterm - Week 4 Materiality Risk and Internal Control Midterm Page 1 1(TCO F Which of the following statements is true of a public

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