Which of the following methods is most commonly used to reduce information risk? a. Allow users to verify information. b. Allow all users to prepare the statements. c. Users share information risk with management. d. Have the financial statements audited

Which of the following methods is most
commonly used to reduce information risk?
a. Allow users to verify information.
b. Allow all users to prepare the statements.
c. Users share information risk with
management.
d. Have the financial statements
audited
by

1 Answer

Answer :

Have the financial statements
audited
by

Related questions

Which of the following methods is most commonly used to reduce information risk? a. Allow all users to prepare the statements. b. Allow users to verify information. c. Have the financial statements audited. d. Users share information risk with management.

Description : Which of the following methods is most commonly used to reduce information risk? a. Allow all users to prepare the statements. b. Allow users to verify information. c. Have the financial statements audited. d. Users share information risk with management.

Last Answer : Have the financial statements audited

The assumption underlying an audit of financial statements is that they will be used by a. Different groups for different purposes. b. The general public in making investment decisions. c. The board of directors as basis of declaring cash dividends. d. The regulatory agencies to verify information that is relevant to their supervisory functions.

Description : The assumption underlying an audit of financial statements is that they will be used by a. Different groups for different purposes. b. The general public in making investment decisions. c ... dividends. d. The regulatory agencies to verify information that is relevant to their supervisory functions.

Last Answer : Different groups for different purposes.

Users of financial statements demand independent audit because a. Users demand assurance that fraud does not exist. b. Management may not be objective in reporting. c. Users expect auditors to correct management errors. d. Management relies on the auditor to improve internal control.

Description : Users of financial statements demand independent audit because a. Users demand assurance that fraud does not exist. b. Management may not be objective in reporting. c. Users expect auditors to correct management errors. d. Management relies on the auditor to improve internal control.

Last Answer : Management may not be objective in reporting

Management assertions are a. Stated in the footnotes to the financial statements. b. Provided to the auditor in the assertions letter, but are not disclosed in the financial statements of the entity. c. Implied or express representations about the accounts in the financial statements. d. Explicitly expressed representations about the financial statements

Description : Management assertions are a. Stated in the footnotes to the financial statements. b. Provided to the auditor in the assertions letter, but are not disclosed in the financial ... the accounts in the financial statements. d. Explicitly expressed representations about the financial statements

Last Answer : Implied or express representations about the accounts in the financial statements.

An auditor should not render a report on: a. Client internal control. b. Management performance. c. The achievability of forecasts. d. Quarterly financial information.

Description : An auditor should not render a report on: a. Client internal control. b. Management performance. c. The achievability of forecasts. d. Quarterly financial information.

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Independent auditing can best be described as a a. Subset or branch of accounting. b. Professional activity that measures and communicates financial accounting data. c. A discipline or professional activity that attests to the fair presentation of financial statements. d. Regulatory activity that prevents the issuance of improper financial information

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Last Answer : A discipline or professional activity that attests to the fair presentation of financial statements.

Which of the following best describes the primary purpose of audit procedures? a. To detect errors or fraud b. To comply with generally accounting principles c. To gather sufficient, appropriate evidence d. To verify the accuracy of account balances

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An audit of financial statements is conducted to determine if the a. Organization is operating efficiently and effectively b. Client's internal control is functioning as intended. c. Auditee is following specific procedures or rules set down by some higher authority d. Overall financial statements are stated in accordance with an identified financial reporting framework

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Which of the following engagements is covered by the Framework for Assurance Engagements? a. Consulting engagements b. Preparation of tax returns c. Independent financial statements audit d. Agreed-upon procedures

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It is essential that users regard CPA firms as: a. Competent. b. Unbiased. c. Technically proficient. d. All of the above

Description : It is essential that users regard CPA firms as: a. Competent. b. Unbiased. c. Technically proficient. d. All of the above

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In performing a financial statement audit, which of the following would an auditor least likely consider? a. Internal control. b. Compliance with GAAP. c. Fairness of the financial statement amounts. d. Quality of management’s business decisions.

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Last Answer : Quality of management’s business decisions.

An audit designed to determine the extent to which the desired results of an activity established by the legislative or other authorizing body are being achieved. a. Economy audit b. Efficiency audit c. Program results audit d. Financial-related audit

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Last Answer : Program results audit

To raise the standards of the profession, the Philippine Accountancy Act of 2004 requires that the CPA profession be integrated under the rules to be established by a. The PICPA. b. The Board of Accountancy. c. The Professional Regulation Commission. d. The Government Association of CPAs.

Description : To raise the standards of the profession, the Philippine Accountancy Act of 2004 requires that the CPA profession be integrated under the rules to be established by a. The PICPA. b. The Board of Accountancy. c. The Professional Regulation Commission. d. The Government Association of CPAs.

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It refers to the attribute or quality of audit evidence. a. Sufficiency b. Relevance c. Reliability d. Appropriateness

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An attestation engagement is one in which a CPA is engaged to: a. Assemble prospective financial statements based on the assumptions of the entity's management without expressing any Testify as an expert witness in accounting, auditing or tax matters, given certain stipulated facts. b. assurance. c. Issue a written communication expressing a conclusion about the reliability of a written assertion that is the responsibility of another party. d. Provide tax advice or prepare a tax return based on financial information the CPA has not audited or reviewed.

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Which of the following statements does not properly describe an element of the theoretical framework of auditing? a. An audit benefits the public. b. The data to be audited can be verified. c. Auditors act on behalf of management. d. Short-term conflicts may exist between managers who prepare data and auditors who examine the data

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The cross product of the vectors 3i + 4j – 5k and –i + j – 2k is, a) 3i – 11j + 7k b) -3i + 11j + 7k c) -3i – 11j – 7k d) -3i + 11j – 7k

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When two vectors are perpendicular, their a) Dot product is zero b) Cross product is zero c) Both are zero d) Both are not necessarily zero

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The best statement of the responsibility of the auditor with respect to audited financial statement is: a. The auditor's responsibility on fair presentation of financial statements is limited only up to the date of the audit report. b. The auditor's responsibility is confined to the expression of opinion on the financial statements audited. c. The responsibility over the financial statements rests with the management and the auditor assumes responsibility with respect to the notes of financial statements. d. The auditor is responsible only to his qualified opinion but not for any other type of opinion.

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.The auditor communicates the results of his or her work through the medium of the a. Engagement letter. b. Audit report. c. Management letter. d. Audited financial statements.

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Last Answer : Audit report.

Which of the following statements does not properly describe an element of the theoretical framework of auditing? a. Remoteness of users. b. An audit benefits the public. c. The data to be audited are verifiable. d. Auditor should maintain independence with respect to the audit client

Description : Which of the following statements does not properly describe an element of the theoretical framework of auditing? a. Remoteness of users. b. An audit benefits the public. c. The data to be audited are verifiable. d. Auditor should maintain independence with respect to the audit client

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Financial statements audits: a. Reduce the cost of capital b. Report on compliance with laws and regulations c. Assess management's efficiency d. Overlook information risk

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Last Answer : Reduce the cost of capital

Independent auditors of financial statements perform audits that reduce and control a. Business risk faced by investors b. Information risk faced by investors c. Complexity of financial statements d. Timeliness of financial statements

Description : Independent auditors of financial statements perform audits that reduce and control a. Business risk faced by investors b. Information risk faced by investors c. Complexity of financial statements d. Timeliness of financial statements

Last Answer : Information risk faced by investors

A CPA is criminally liable if he a. Refuses to turn over the schedules or working papers prepared by the client staff to the client. b. Performs an audit in a negligent manner. c. Intentionally allows an omission of a material fact required to be stated in a financial statement. d. Was not able to submit the audited financial statements on time

Description : A CPA is criminally liable if he a. Refuses to turn over the schedules or working papers prepared by the client staff to the client. b. Performs an audit in a negligent manner. c. Intentionally ... be stated in a financial statement. d. Was not able to submit the audited financial statements on time

Last Answer : Intentionally allows an omission of a material fact required to be stated in a financial statement

Which of the following statements does not properly describe a limitation of an audit? a. Many audit conclusions are made on the basis of examining a sample of evidence. b. The work, under taken by the auditor is permeated by judgment. c. Fatigue and human weaknesses can cause auditors to overlook pertinent evidence. d. Many financial statement assertions cannot be audited

Description : Which of the following statements does not properly describe a limitation of an audit? a. Many audit conclusions are made on the basis of examining a sample of evidence. b. The ... weaknesses can cause auditors to overlook pertinent evidence. d. Many financial statement assertions cannot be audited

Last Answer : Fatigue and human weaknesses can cause auditors to overlook pertinent evidence

Which of the following statements does not properly describe a limitation of an audit? a. Many financial statement assertions cannot be audited. b. Many audit conclusions are made on the basis of examining a sample of evidence. c. The work, under taken by the auditor is permeated by judgment. d. Fatigue and human weaknesses can cause auditors to overlook pertinent evidence

Description : Which of the following statements does not properly describe a limitation of an audit? a. Many financial statement assertions cannot be audited. b. Many audit conclusions are made on the ... permeated by judgment. d. Fatigue and human weaknesses can cause auditors to overlook pertinent evidence

Last Answer : Fatigue and human weaknesses can cause auditors to overlook pertinent evidence

Which of the following statements is correct concerning an auditor's responsibilities regarding financial statements? a. The auditor's report should provide an assurance as to the future viability of the entity. b. Making suggestions that are adopted about the form and content of an entity's financial statements impairs an auditor's independence. c. An auditor's responsibilities for audited financial statements are confined to the expression of the auditor's opinion. d. The fair presentation of audited financial statements in accordance with an applicable financial reporting framework is an implicit part of the auditor's responsibilities

Description : Which of the following statements is correct concerning an auditor's responsibilities regarding financial statements? a. The auditor's report should provide an assurance as to the future ... with an applicable financial reporting framework is an implicit part of the auditor's responsibilities

Last Answer : An auditor's responsibilities for audited financial statements are confined to the expression of the auditor's opinion

A CPA is criminally liable if he a. Refuses to turn over the schedules or working papers prepared by the client staff to the client. b. Performs an audit in a negligent manner. c. Intentionally allows an omission of a material fact required to be stated in a financial statement. d. Was not able to submit the audited financial statements on time

Description : A CPA is criminally liable if he a. Refuses to turn over the schedules or working papers prepared by the client staff to the client. b. Performs an audit in a negligent manner. c. Intentionally ... be stated in a financial statement. d. Was not able to submit the audited financial statements on time

Last Answer : Intentionally allows an omission of a material fact required to be stated in a financial statement.

An engagement to apply agreed-upon procedure engagement may be accepted, provided a. The CPA has audited the financial statements of the client. b. The CPA is independent with respect to the client. c. The distribution of the report will be limited only to specified parties involved. d. The adequacy of the procedures to be performed will be determined by the CPA.

Description : An engagement to apply agreed-upon procedure engagement may be accepted, provided a. The CPA has audited the financial statements of the client. b. The CPA is independent with respect to the client. ... involved. d. The adequacy of the procedures to be performed will be determined by the CPA.

Last Answer : The distribution of the report will be limited only to specified parties involved.

The primary purpose of an independent financial statement audit is to a. Provide a basis for assessing management's performance b. Comply with government regulatory requirements c. Assure management that the financial statements are unbiased and free from material error d. Provide users with an unbiased opinion about the fairness of information reported in the financial statements

Description : The primary purpose of an independent financial statement audit is to a. Provide a basis for assessing management's performance b. Comply with government regulatory requirements c. Assure ... users with an unbiased opinion about the fairness of information reported in the financial statements

Last Answer : Provide users with an unbiased opinion about the fairness of information reported in the financial statements

There are four conditions that give rise to the need for independent audits of financial statements. One of these conditions is consequence. In this context, consequence means that the: a. Users of the statements may not fully understand the consequences of their actions. b. Auditor must anticipate all possible consequences of the report issued. c. Impact of using different accounting methods may not be fully understood by the users of the statements. d. Financial statements are used for important decisions

Description : There are four conditions that give rise to the need for independent audits of financial statements. One of these conditions is consequence. In this context, consequence means that the: a. ... fully understood by the users of the statements. d. Financial statements are used for important decisions

Last Answer : Financial statements are used for important decisions

Whenever a CPA professional is engaged to perform an audit of financial statements according to Philippine Standards on Auditing, he required to comply with those standards in order to a. Eliminate audit risk. b. Eliminate the professional judgment in resolving audit issues. c. Have a measure of the quality of audit performance. d. To reduce the audit program to be prepared by the auditor.

Description : Whenever a CPA professional is engaged to perform an audit of financial statements according to Philippine Standards on Auditing, he required to comply with those standards in order to a. Eliminate audit risk ... of audit performance. d. To reduce the audit program to be prepared by the auditor.

Last Answer : Have a measure of the quality of audit performance.

.As part of audit planning, CPAs should design audit programs for each individual audit and should include audit steps and procedures to a. Ensure that only material items are audited. b. Provide assurance that the objectives of the audit are met. c. Detect and eliminate fraud. d. Increase the amount of management information available

Description : .As part of audit planning, CPAs should design audit programs for each individual audit and should include audit steps and procedures to a. Ensure that only material items are audited. b. Provide ... are met. c. Detect and eliminate fraud. d. Increase the amount of management information available

Last Answer : Provide assurance that the objectives of the audit are met.

Which of the following is the most likely first step an auditor would perform at the beginning of an initial audit engagement? a. Prepare a rough draft of the financial statements and of the auditor's report. b. Study and evaluate the system of internal administrative control. c. Tour the client's facilities and review the general records. d. Consult with and review the work of the predecessor auditor prior to discussing the engagement with the client management

Description : Which of the following is the most likely first step an auditor would perform at the beginning of an initial audit engagement? a. Prepare a rough draft of the financial statements and of ... and review the work of the predecessor auditor prior to discussing the engagement with the client management

Last Answer : Tour the client's facilities and review the general records