Which of the following events or activities normally occurs following the audit report release date?
A. Interim testing.
B. Roll-forward work.
C. Subsequent events.
D. Subsequent discovery of facts.
Interim testing normally occurs betw
The definition of internal audit includes all of the following except
A. Independent and objective.
B. Assurance and consulting activity.
C. Determine efficient and effective performance.
D. Add value and improve an organization's oper
The typical business activity of the finance and investment cycle would not include
A. Proposals for cash forecasts, capital budgets, and business expansion.
B. Analyses of excess cash funds.
C. Reconciliation of cash.
D. Sale of stocks,
The scope paragraph of the standard report on the entity's financial statements does not include the
A. "In conformity with generally accepted accounting principles."
B. "Audit provides a reasonable basis for an opinion."
When auditing financial statements and finding indications of a possible misappropriation of assets,
independent auditors should
A. Investigate fully to determine the total amount of the misappropriation.
B. Determine which accounts are a
The set of items about which a statement is made in a sampling application is referred to as a(n):
A. Sampling unit.
C. Population unit.
Which of the following is not an advantage of statistical sampling?
Which of the following components of the audit risk model is most closely associated with attributes
A. Audit risk.
B. Control risk.
C. Detection risk.
D. Inherent risk.
The purpose of tests of controls is to determine tha
Auditors should not be liable to any party if they perform their services with:
A. Ordinary negligence.
B. Regulatory providence.
C. Due care.
D. Good faith.
A principle that may reduce or eliminates auditors' liability to clients i
Which of the following controls most likely would ensure that an organization can reconstruct its
A. Hardware controls are built into the computer by the computer manufacturer.
B. Backup files are stored in a locatio
Which component of the expanded audit risk model is most closely associated with the risk of incorrect
A. Analytical procedures risk.
B. Risk of Material Misstatement.
C. Nonsampling risk.
D. Test of details risk.
Which of the following is NOT a key element of the definition of ethics?
A. Reflective choice
B. Moral principles
C. Definitive conclusions
D. Consequences of decisions
Which of the following defines the imperative principle of ethi
The AICPA Assurance Services Executive Committee identified five megatrends that can affect public
accounting "firms" business. Which of the following is NOT one of the megatrends they identified?
A. Information Technology.
B. The shif
A client's physical count of inventories was higher than the inventory quantities shown in the perpetual
records. This situation could be the result of the failure to record
B. Sales discounts.
D. Purchase discount
When confirming accounts payable, emphasis should be put on what kind of accounts?
A. Accounts with small or zero balances.
B. All accounts should be equally emphasized.
C. Accounts with large balances.
D. Accounts listed in the accounts
To be recognized, revenues must also be realized or realizable and
The SEC requires all of the following for revenue to be recognized except
A. Cash is collected.
B. Persuasive evidence
An audit team's responsibility would not include
A. Designing client's internal controls.
B. Documentation of understanding of a client's internal controls.
C. Communicating internal control deficiencies.
D. Assessing the effectiveness a
Which of the following auditor concerns most likely could be so serious that the auditor concludes that a
financial statement audit cannot be conducted?
A. The entity has no formal written code of conduct.
B. The integrity of entity's man
The major emphasis in GAAS related to consideration of fraud in a financial statement audit (SAS 99) is
A. Employee misappropriation of assets.
B. Management fraud.
C. Client fraud on customers.
D. Employee embezzlement.
The attestation standards of reporting do not require the attestation report to include a statement that
A. Provides a conclusion whether the subject matter is presented in conformity with established or stated
B. Indicates that
The audit objective that all transactions and accounts that should be presented in the financial statements
are in fact included is related to which of the PCAOB assertions?
B. Rights and obligations