Which of the following matters related to the auditors consideration of

Which of the following matters related to the

  • Pontifical Catholic
  • ACCT 431
  • Test Prep
  • Chrollo
  • 28
  • 99% (135) 134 out of 135 people found this document helpful

This preview shows page 12 - 14 out of 28 pages.

2) Which of the following matters related to the auditor's consideration of material misstatementsdue to fraud are required to be documented?A) Reasons supporting a conclusion that there is not a significant risk of material improper expense recognitionB) Procedures performed to obtain information necessary to identify and assess the risks of material fraudC) Results of the internal auditor's procedures performed to address the risk of management override of controlsD) Discussions with management regarding the hiring of a new plant managerAnswer: BTerms: Auditing standards requiring auditors to document matters related to auditor consideration of material misstatements due to fraudDiff: ModerateObjective: LO 11-3AACSB: Reflective thinking skills3) As part of the brainstorming sessions, auditors are directed to emphasize:The audit team's response topotential fraud risksYesNo12
Background image
4) Which of the following questions is the auditor notrequired to ask company management when assessing fraud risk?A) Does management have knowledge of any fraud or suspected fraud within the company?B) What are the nature of the fraud risks identified by management?C) Is management using all assets effectively?D) What internal controls have been implemented to address the fraud risks?5) When assessing the risk for fraud, the auditor must be cognizant of the fact that:
Background image
Image of page 14

You've reached the end of your free preview.

Want to read all 28 pages?

  • Winter '15
  • DR.IRRIZARY
  • Financial audit, AACSB

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture