53.How do the scope, procedures, and purpose of an examination of management’s written assertion on internal control compare to those for obtaining an understanding of internal control and assessing control risk as part of an audit? a b c d Scope Similar Different Different Different Procedures Different Similar Different Similar Purpose Similar Similar Different Different AICPA 5/90 54.Which of the following statements is incorrect concerning a client who outsources a portion of its IT function? a.Auditors need not be concerned with outsourced IT functions because those functions are reviewed by other auditors. b.The extent to which an auditor obtains an understanding of the service center’s internal controls should be based upon the same criteria used to determine the understanding obtained for a client’s internal controls.c.It is common for a single independent auditor to obtain an understanding and test internal controls of a service center for use by all its customers and their auditors.
Page 9 of 19 Atfq3 pffa d.None of the above is correct. 55.Assertions are representations of management that are embodied in financial statement components. They can be either explicit or implicit. Which of these assertions is not about valuation or allocation? 56.Most of the independent auditor’s work in formulating an opinion on financial statements consists of AICPA 0580, RPCPA 0584 57.The principal reason for an independent auditor to gather and evaluate audit evidence is to AICPA 0574, RPCPA 1077, 0578, 1078, 1083 58.Which of the following statements concerning evidential matter is correct? a.Competent evidence supporting management’s assertions should be convincing rather than merely persuasive. b.An effective internal control structure contributes little to the reliability of the evidence created within the entity. c.The cost of obtaining evidence is not an important consideration to an auditor in deciding what evidence should be obtained. d.A client’s accounting data cannot be considered sufficient audit evidence to support the financial statements. AICPA 0591
- Fall '12