13-1 What are the five types of tests auditors use to determine whether financial statements are fairly
stated? Identify which tests are performed to reduce control risk and which tests are performed to
reduce planned detection risk. Also, identify which
6-19 (objection 6-10)
Identify the four phases of the audit. What is the relationship of the four phases to the objective of the
audit of financial statements?
The four phases of the audit are
Plan and design an audit approach
Perform tests of
List the purposes of audit documentation and explain why each purpose is important.
The purposes of audit documentation are as follows:
1. To provide a basis for planning the audit. The auditor may use reference information from the
previous year in
Chapter 8 Homework
8-3 What are the responsibilities of the successor and predecessor auditors when a company is changing
The new auditor (successor) is required by auditing standards to communicate with the predecessor
auditor. This ena
9-4 What is meant by setting a preliminary judgment about materiality? Identify the most
important factors affecting the preliminary judgment.
The preliminary judgment about materiality is the maximum amount by
which the auditor believes the finan
Chapter 3 Homework Problems
a. Which of the following is not a required element of a standard unqualified audit report issued in
accordance with AICPA auditing standard?
2. the signature of the engagement partner
b. The date of the CPAs opinion on th
1. Management believes and the auditor is satisfied that a material loss probably will occur when
pending litigation is resolved. Management is unable to make a reasonable estimate of the
amount or range of the potential loss, but fully discloses the situ