Important Note re: Chapter Review Checkpoint questions: As you read and study each of chapter content thoroughly, please try to answer the review checkpoint questions (within chapter content) on your own prior to
reading the following notes.
Answers to Ch
Course Contract* (syllabus) Intro to Financial Auditing-Accounting 58
Professor Christopher Kwak, CPA, CFE, CFF. Office Hour: Online and /or By Appointment. Phone: 408-864-5727 (Voice Mail). Email: [email protected]
Course Instructional W
1. Which of the following types of documentary evidence should the auditor consider to be most
Confirmation of an account payable balance mailed by and returned directly to the
2. Which of the following statements concerning audit evide
1. One purpose of establishing quality control policies and procedures for deciding whether to
accept a new client is to:
To provide reasonable assurance that the integrity of the client is considered
2. Which of the following is NOT required element of
1. Which of the following best describes why an independent auditor is asked to express an opinion
on the fair presentation of financial statement
The opinion of an independent party is needed because a company may not be objective
with respect to its ow
A) Type of Audit Test (Test of control, Year-End substantive Test) B) Use of Ratio: 1. Inventory overstated 2. Inventory understated 3. Lager % of Sales compare of last year 4. Smaller % of Sales compare of last year 5. Sales increased as same % of COGS 6
5.63 a. In planning an audit, an auditor's understanding of the internal control components should be used to identify the types of potential misstatements that could occur, to consider the factors affecting the risk of material misstatement, and to influ
1. Distinguish between managements and auditors responsibilities regarding an entitys internal control.
Management is responsible for establishing a control environment, assessing risks it wished to control, specifying information and communication channe
1. In which of the following situations would CPA be in violation of the AICPA Code of Professional
Conduct in determining the audit fee?
A fee based on whether the CPAs report on the clients financial statements result in the
approval of a bank loan.