Which of the following auditor concerns most likely could be so serious that the auditor
concludes that a financial statement audit cannot be performed?
Internal control activities requiring segregation of duties are rarely monitored by
(TCO D) (CPA-01502.B) According to the profession's ethical
standards, which of the following events may justify a departure from
a new form
(TCOs B and C) (CPA-02576.B) Which of the following matters is an
auditor required to communicate to those charged with governance?
The basis for his or her assessment of control risk.
The process used by management in formul
(TCOs B and C) (CPA-05468.B) Which of the following procedures
would be most effective in reducing attestation risk?
Discussion with responsible individuals.
Examination of evidence.
Inquiries of senior management.
(TCO A) (CPA-02666.B) Which of the following factors most likely
would cause a CPA to not accept a new audit engagement?
The prospective client has already completed its physical
The CPA lacks an understandin
(TCO E) (CPA-06366.B) When an accountant is not independent with
respect to an entity, which of the following types of compilation reports
may be issued?
The standard compilation report may be issued, regardless of
Question 1. Question :
(TCO E) (CPA-05849.B) Which of the following procedures would an
auditor most likely perform in obtaining evidence about subsequent
Examine changes in the quoted market prices of investments
purchased since t
Keller Graduate School of Management
ACCT 591 Auditing and Attestation
The course consists of lectures that will be covered on the following dates:
KGSM Audit Only
The Statement of Cash Flows
The Income Statement and the Statement
of Stockholders Equity
(5-10 min.) S 11-1
There are several ways that companies improperly recognize revenue, which results
in financial statement fraud.
a. Channel stuffing is when a compa
(10 min.) S 9-1
ACCOUNT TITLES AND EXPLANATION
Note Payable, Short-Term
Purchased inventory by issuing a
30 Interest Expense
Long-Term Investments &
the Time Value of Money
(10-15 min.) S 8-1
ACCOUNT TITLES AND EXPLANATION
Available-for-Sale Investment (600 $17).
Cash (600 $1.24).
Plant Assets & Intangibles
(5 min.) S 7-1
Property and Equipment, at Cost
Package handling and ground support
Computer and electronic equipment.
Facilities and ot
Short-Term Investments & Receivables
(5 min.) S 5-1
1. Trading investments are reported at their current market value.
2. A trading investment is always a current asset because the investor intends to
sell the trading investment
Accrual Accounting & Income
(10 min.) S 3-1
Cost of goods sold
All other expenses
Collections ($850 $27).
Payments for: inventory.
Internal Control & Cash
(5 min.) S 4-1
Fraud is an intentional misrepresentation of facts, made for the purpose of
persuading another party to act in such a way that causes injury or damage to that
The Three Components of
(5 min.) S 2-1
Hoopers payment was not an expense.
Hooper acquired an asset, Equipment, because the computer is an economic
resource of the business.
(5 min.) S 2-2
$13,400 ($11,000 + $2,400 + $5,500 $5,50
Week 7 Homework
a. Items that do not need to be included in the auditor's report are:
That Bellamy is presenting comparative financial statements because both of the
years statements will be discussed to in the audit report.
A detailed descr
Week 5 Homework
a. Audit B represent the maximum amount of reliance that can be placed on internal control
because of the inherent limitations of internal control, and the need to perform certain tests of
balances such as con
Week 1 Homework
a) The ways that services provided by Consumer Unions are similar to the assurance
services provided by CPA firms are that they both aim toward ensuring quality of service,
customer satisfaction, and they both provide remedie
Week 4 Homework
1. Information and communication
2. Control environment
3. Risk assessment
5. Control activities
6. Information and communication
7. Control activities
8. Control environment
9. Risk assessment
10. Control acti
Week 2 Homework
a) Chen is liable to the bank because he issued false financial statements. The requirements
for common law fraud are all met. There was a material misstatement, scienter, intent
that the client relied on the false statements
1. easy d Which of the following is not a condition for a contingent liability to exist? a. There is a potential future payment to an outside party that would result from a current condition. b. There is uncertainty ab