Audit Test #1 Study Guide
Makeup of Exam:
- 50 multiple choice
- 6 fill in the blank
- 10 matching questions (definitional)
- Short Answer (Exhibit 1-1) 9 errors, need to identify 7
- Nature of the audit process and responsibility div
Situation 1. During the audit of Shaky Savings and Loan, Quick and Dirty, CPAs collected sufficient audit
evidence and discovered no problems with fairness of the presentation of information in financial statements
during the performance of
Review class activity
Discuss Chapter 3
Begin Chapter 3
Class Activity #2 Ethical Memo
Helpful links on Blackboard
Assignment for those who missed class
CLASS ACTIVITY #1
PROFESSIONAL STANDARDS & ETHICS
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Question 1 —-
Which of the following best describes what is meant by generally accepted auditing standards?
’7 Audit objectives generally determined on audit engagements.
’“i Acts to be performed by the auditor.
0 Measures of the qua
Audit Planning, Types of Audit
Tests, and Materiality.
Understand the critical role of clients acceptance and
continuance in the audit engagement.
Become familiar with the term Engagement Letter,
understand its basic functi
An audit in general is an evaluation of a person, organization, system, process, project or product
with the goal to express an opinion about the accuracy of a certain claim/assertion (broad definition)
by an independent third party. This opinion should
1. Assertions about account balances Management asserts that the entity
owns the inventory represented in the account
2. Assertions about transactions - management asserts that transactions related
to inventory actually o
Auditing & Assurance Services
Discuss Chapter 1
The risk that an entity will fail t