Description : A(n) _ is a review of the quality plan, procedures, data collection, and analysis by an outside group. Select one: a. scope document b. project appraisal c. cost performance index d. analogous estimate e. quality audit
Last Answer : e. quality audit
Description : Auditing standards differ from auditing procedures in that procedures relate to: a. Measures of performance b. Acts to be performed. c. Audit judgments d. Audit principles
Last Answer : Acts to be performed
Description : Internal auditing can affect the scope of the external auditor's audit of financial statements by a. Decreasing the external auditor's need to perform detailed tests b. Eliminating the need ... direct testing by the external auditor to management assertions not directly tested by internal auditing.
Last Answer : Decreasing the external auditor's need to perform detailed tests
Description : Choose one of the following which would describe best the phrase "generally accepted auditing standards": a. They identify the policies and procedures for the conduct of the audit. b. They define the ... d. They set forth a measure a measure of the quality of the performance of audit procedures.
Last Answer : They set forth a measure a measure of the quality of the performance of audit procedures.
Description : Auditing standards differ from auditing procedures in that procedures relate to a. Audit judgments. b. Audit principles. c. Acts to be performed. d. Measures of performance.
Last Answer : Acts to be performed.
Description : In pursuing its quality control objectives with respect to assigning personnel to engagements, a public accounting firm may use policies and procedures such as a. Rotating employees from ... the staffing requirements of specific engagements so that enough qualified personnel can be made available
Last Answer : Requiring timely identification of the staffing requirements of specific engagements so that enough qualified personnel can be made available
Description : An audit plan is a a. Detailed plan of analytical procedures and all substantive tests to be performed in the course of the audit. b. Document that provides an overview of the company and a ... process. d. Budget of the time that should be necessary to complete each phase of the audit procedure
Last Answer : Document that provides an overview of the company and a general plan for the audit work to be accomplished, timing of the work, and other matters of concern to the audit.
Description : Which statement best describes the emphasis of the systems and substantive approaches in the audit plan? a. A thoroughly designed systems approach to auditing can eliminate the need for any ... computer systems to aid in the audit while the substantive approach focuses on more manual tests
Last Answer : The systems approach focuses on testing controls to make sure they are effective, while the substantive approach is the detailed testing of specific accounts for accuracy
Description : An audit program is a. A generic document that auditing firms have developed to lead the process of the audit through a systematic and logical process. b. An overview of the company and a general ... d. A budget of the time that should be necessary to complete each phase of the audit procedures
Last Answer : The detailed plan of audit procedures to be performed in the course of the audit.
Description : An audit plan is a a. Detailed plan of analytical proceduresand all substantive tests to be performed in the course of the audit. b. Generic document that auditing firms have developed to lead the ... audit work to be accomplished, timing of the work, and other matters of concern to the audit
Last Answer : Document that provides an overview of the company and a general plan for the audit work to be accomplished, timing of the work, and other matters of concern to the audit
Description : An auditor is required to obtain a basic understanding of the client's internal control to plan the audit. The auditor may then decide to perform tests of controls on all internal control ... to be strengths for which the auditor desires further reduction in the assessed level of control risk.
Last Answer : Considered to be strengths for which the auditor desires further reduction in the assessed level of control risk.
Description : Which of the following should be included in the audit plan? I. The nature, timing and extent of planned risk assessment procedures. II. The nature, timing and extent of planned further audit procedures at the assertion level. a. I only b. II only c. Both I and II d. Neither I nor II
Last Answer : Both I and II
Description : State true or false. i) comparisons precede logical operations in java ii) assignment operations succeed increment operations iii) arithmetic operations succeed comparisons iv) x precede + A) i-true, ii-true, iii-false, ... false, ii-true, iii-false, iv-false D) i-true, ii-false, iii-false, iv-true
Last Answer : A) i-true, ii-true, iii-false, iv-true
Description : In a java program, package declaration .................... import statements. A) must precede B) must succeed C) may precede or succeed D) none
Last Answer : A) must precede
Description : In designing written audit programs, an auditor should establish specific audit objectives that relate primarily to the a. Financial statement assertions. b. Timing of audit procedures. c. Cost-benefit of gathering evidence. d. Selected audit techniques.
Last Answer : Financial statement assertions
Description : Which of the following is an element of "directing an audit assistant" objective? a. Identifying in advance the staffing requirements of a particular audit engagement. b. Resolving any ... . Informing assistants of their responsibilities and the objectives of the procedures they are to perform
Last Answer : Informing assistants of their responsibilities and the objectives of the procedures they are to perform
Description : Which of the following statements would least likely appear in an auditor's engagement letter? a. Our engagement is subject to the risk that material errors, fraud, and defalcations, if they exist, ... services are based on our regular per diem rates, plus travel and other out-of-pocket expenses
Last Answer : After performing our preliminary analytical procedures we will discuss with you the other procedures we consider necessary to complete the engagement.
Description : Management's assertions in the financial statements are relevant to the audit process because: a. They provide evidence that auditors have prepared financial statements in accordance with GAAP b ... with the applicable reporting criteria d. They relate to regulator's expectations about audit results
Last Answer : They include representations of financial statements in accordance with the applicable reporting criteria
Description : The overriding objective of the International Auditing Standards that are issued by the International Auditing Practices Committee of the IFAC is a. To override a country's regulations governing ... audit procedures that are acceptable worldwide. d. To replace generally accepted auditing standards.
Last Answer : To improve the uniformity of auditing practices and related services throughout the world
Description : For assurance engagements regarding historical financial information, reasonable assurance engagements are called: a. Review engagements. b. Audit engagements. c. Compilation engagements. d. Agreed-upon procedures engagements
Last Answer : Audit engagements
Description : The term "accountant" has been used by Auditing and Assurance Standards Council to refer to a CPA in public practice who is engaged to: a. Audit financial statements. b. Review financial statements. c. Apply agreed-upon procedures. d. Compile financial statements
Last Answer : Compile financial statements
Description : A report on factual findings is the end product of the auditor when performing: a. Audit. b. Review. c. Agreed-upon procedures. d. Compilation
Last Answer : Agreed-upon procedures
Description : At the beginning of the current audit engagement, the auditor should perform key preplanning activities which include all of the following except: a. Performing procedures regarding client acceptance ... c. Establishing an understanding of the terms of the engagement. d. Considering internal contro
Last Answer : Considering internal contro
Description : The Code of Professional Ethics states, in part, that a CPA should maintain integrity and objectivity. Objectivity refers to the CPA's ability to a. Determine accounting practices that were consistently ... . c. Determine the materiality of items. d. Insist on all matters regarding audit procedures.
Last Answer : Maintain an impartial attitude on all matters which come under his review.
Description : The overriding objective of the International Auditing Standards that are issued by the International Auditing Practices Committee of the IFAC is a. To override a country's regulations ... specific audit procedures that are acceptable worldwide. d. To replace generally accepted auditing standards
Last Answer : To improve the uniformity of auditing practices and related services throughout the world.
Description : For assurance engagements regarding historical financial information, reasonable assurance engagements are called: a. Review engagements. b. Audit engagements. c. Compilation engagements. d. Agreed-upon procedures engagements.
Last Answer : Audit engagements.
Description : The term "accountant" has been used by Auditing and Assurance Standards Council to refer to a CPA in public practice who is engaged to: a. Audit financial statements. b. Review financial statements. c. Apply agreed-upon procedures. d. Compile financial statements.
Last Answer : Compile financial statements.
Description : A report on factual findings is the end product of the auditor when performing: a. Audit. b. Review. c. Agreed-upon procedures. d. Compilation.
Description : When planning the audit, if the auditor has no reason to believe that illegal acts exist, the auditor should a. Include audit procedures which have a strong probability of detecting illegal ... c. Still include some audit procedures designed specifically to uncover illegalities. d. Ignore the topic
Last Answer : Make inquiries of management regarding their policies and regarding their knowledge of violations, and then rely on normal audit procedures to detect errors, irregularities, and illegalities
Description : .If specific information comes to an auditor's attention that implies the existence of possible illegal acts that could have a material, but indirect effect on-the financial statements, the auditor ... d. Discuss the evidence with the client's audit committee, or others with equivalent authority.
Last Answer : Apply audit procedures specifically directed to ascertaining whether an illegal act has occurred
Description : The ordinary examination of financial statements is not primarily designed to disclose defalcations and other irregularities although their discovery may result. Normal audit procedures are more likely to ... . Failure to record cash receipts for services rendered. d. Forgeries on company checks
Last Answer : Theft of inventories
Description : The implementation of quality control procedures that are applicable to the individual audit engagement is the responsibility of the a. CPA firm. b. Engagement quality control reviewer c. Expert contracted by the firm in connection with the audit engagement. d. Engagement team
Last Answer : Engagement team
Description : Which of the following is most likely to be an overall response to fraud risks identified in an audit? a. Only use certified public accountants on the engagement b. Place increased emphasis on the ... the audit team less closely and rely more upon judgment. d. Use less predictable audit procedures.
Last Answer : Use less predictable audit procedures.
Description : Which of the following is most likely to be an overall response to fraud risks identified in an audit? a. Supervise members of the audit team less closely and rely more upon ... engagement. d. Place increased emphasis on the audit of objective transactions rather than subjective transactions.
Description : Which of the following statements best describes the auditor's responsibility regarding the detection of material errors and frauds? a. The auditor is responsible for the failure to detect material ... unrecorded transactions even if there is no evidence that material errors and frauds may exist
Last Answer : The audit should be designed to provide reasonable assurance that material errors and frauds are detected
Description : The ordinary examination of financial statements is not primarily designed to disclose defalcations and other irregularities although their discovery may result. Normal audit procedures are more likely to ... receipts for services rendered. c. Forgeries on company checks. d. Theft of inventories
Description : Every independent audit engagement involves both auditing standards and auditing procedures. The relationship between the two may be illustrated by how they apply from engagement to engagement. The ... procedures are optional. d. Both auditing standards and auditing procedures are applied uniformly
Last Answer : Auditing standards are applied uniformly but auditing procedures may vary
Description : Which of the following mostly describes the function of AASC? a. To monitor full compliance by auditors to PSAs. b. To assist the Board of Accountancy in conducting administrative proceedings on ... both auditing and financial accounting in order to make them responsive to the needs of the public
Last Answer : To promulgate auditing standards, practices and procedures that shall be generally accepted by the accounting profession in the Philippines.
Description : Which of the following least likely limits the auditor's ability to detect material misstatement? a. The inherent limitations of any accounting and internal control system. b ... procedures that are effective in detecting ordinary misstatements are ineffective in detecting intentional misstatements
Last Answer : Most audit evidences are conclusive rather than being persuasive
Description : In all cases, audit reports must a. Communicate the auditor's finding to the general public. b. Be signed by the individual who performed the audit procedures. c. Certify the ... . Inform readers of the degree of correspondence between the quantifiable information and the established criteria
Last Answer : Inform readers of the degree of correspondence between the quantifiable information and the established criteria
Description : Though PSAs do not provide "hard and fast rules," they provide subjective guidance which allow the auditors to: a. Only apply those standards that are important to the audit. b. Use ... Tailor their audit to procedures requested by management. d. Accurately interpret the Code of Ethics for CPAs
Last Answer : Use adequate professional judgment when applying the standards.
Description : Audit programs should be designed so that a. Most of the required procedures can be performed as interim work. b. The audit evidence gathered supports the auditor's conclusions. c. ... is assessed at a sufficiently low level. d. The auditor can make constructive suggestions to management
Last Answer : The audit evidence gathered supports the auditor’s conclusions.
Description : When planning the audit, if the auditor has no reason to believe that illegal acts exist, the auditor should a. Make inquiries of management regarding their policies and their knowledge of ... Ignore the topic. d. Include audit procedures which have a strong probability of detecting illegal acts
Last Answer : Make inquiries of management regarding their policies and their knowledge of violations, and then rely on normal audit procedures to detect errors, irregularities, and illegalities
Description : Which statement is incorrect regarding procedures and evidence obtained in a review engagement? a. The auditor should apply judgment in determining the specific nature, timing and extent of review procedures. ... the needs of those relying on that information, not to the level of assurance provided
Last Answer : There is a greater risk that misstatements will not be detected in an audit than in a review.
Description : The Code of Professional Ethics states, in part, that a CPA should maintain integrity and objectivity. Objectivity refers to the CPA's ability to a. Insist on all matters regarding audit ... were consistently applied. d. Maintain an impartial attitude on all matters which come under his review
Last Answer : Maintain an impartial attitude on all matters which come under his review
Description : Quality control procedures are applicable to the individual audit engagement. The implementation of such quality control procedures is responsibility of the: a. CPA firm. b. Engagement team. c. Quality control reviewer. d. Manager assigned to the engagement
Description : The element of the audit planning process most likely to be agreed upon with the client before implementation of the audit strategy is the determination of the a. Procedures to be undertaken to discover ... opinion. d. Pending legal matters to be included in the inquiry of the client's attorney.
Last Answer : Timing of inventory observation procedures to be performed
Description : An auditor should design the written audit program so that a. All material transactions will be selected for substantive testing. b. Substantive tests prior to the balance sheet date ... controls or tests of transactions. d. The audit procedures selected will achieve specific audit objectives
Last Answer : The audit procedures selected will achieve specific audit objectives
Description : After studying and evaluating a client's existing internal control, an auditor has concluded that the policies and procedures are well-designed and functioning as intended. Under these circumstances, the ... risk at a lower level than would be set under conditions of weak internal control.
Last Answer : Set detection risk at a higher level than would be set under conditions of weak internal control.