acc03 - 9 1 Multiple Choice(20 1 An independent audit aids...

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? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? : ? ? ? ?                                            ? ? : ? ? ? ☆☆ ? ? ? ? ? ? ? ?                                            ☆☆ ? 9 ? , ? 1 ?   ? ? Multiple Choice (20%) 1 An independent audit aids in the communication of economic data because the audit a. Confirms the accuracy of management’s financial representations. b. Lends credibility to the financial statements. c. Guarantees that financial data are fairly presented d. Assures the readers of financial statements that any fraudulent activity has been corrected. 2 Which of the following, if material, would be fraud? a. Mistakes in the application of accounting data underlying the financial statements. b. Clerical mistakes in the accounting data underlying the financial statement. c. Misappropriation of an asset or groups of assets. d. Misinterpretations of facts that existed when the financial statements were prepared. 3 When is a duty to disclose fraud to parties other than the client’s senior management and its audit committee most likely to exist? a. When the amount is material. b. When the fraud results from misappropriation of assets rather than fraudulent financial reporting. c. In response to inquiries from a successor auditor. d. When a line manager rather than a lower-level employee commits the fraudulent act. 4 Which of the following statements about internal control is correct? a. A properly maintained internal control system reasonably ensures that collusion among employees cannot occur. b. The establishment and maintenance of internal control is an important responsibility of the internal auditor. c. An exceptionally strong internal control system is enough for the auditor to eliminate substantive tests on a significant account balance. d. The cost-benefit relationship is a primary criterion that should be considered in designing an internal control system. - 1 -
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? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? : ? ? ? ?                                            ? ? : ? ? ? ☆☆ ? ? ? ? ? ? ? ?                                            ☆☆ ? 9 ? , ? 2 ?   5 As a result of sampling procedures applied as tests of controls, an auditor incorrectly assesses control risk lower than appropriate. The most likely explanation for this situation is that a. The deviation rates of both the auditor’s sample and the population exceed the tolerable deviation rate. b. The deviation rates of both the auditor’s sample and the population are less than the tolerable deviation rate. c.
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This note was uploaded on 03/27/2012 for the course ACC 101 taught by Professor Smith during the Spring '12 term at Missouri State University-Springfield.

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acc03 - 9 1 Multiple Choice(20 1 An independent audit aids...

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