Which of the following statements concerning analytical procedures is true? a. Analytical procedures are more efficient, but not more effective, than tests of details of transactions. b. Analytical procedures used as risk assessment procedures use data aggregated at a high level. c. Analytical procedures can replace tests of controls in gathering audit evidence to support the assessed level of control risk. d. Analytical procedures usually involve comparisons of ratios developed from recorded amounts with ratios developed by management

Which of the following statements
concerning analytical procedures is true?
a. Analytical procedures are more efficient,
but not more effective, than tests of
details of transactions.
b. Analytical procedures used as risk
assessment procedures use data
aggregated at a high level.
c. Analytical procedures can replace tests of
controls in gathering audit evidence to
support the assessed level of control risk.
d. Analytical procedures usually involve
comparisons of ratios developed from
recorded amounts with ratios developed
by management
by

1 Answer

Answer :

Analytical procedures used as risk
assessment procedures use data
aggregated at a high level.
by

Related questions

A basic premise underlying analytical procedures is that a. The study of financial ratios is an acceptable alternative to the investigation of unusual fluctuations. b. Plausible relationships among data may reasonably be expected to exist and continue in the absence of known conditions to the contrary. c. These procedures cannot replace tests of details of transactions and balances. d. Statistical tests of financial information may lead to the detection of material misstatements in the financial statements.

Description : A basic premise underlying analytical procedures is that a. The study of financial ratios is an acceptable alternative to the investigation of unusual fluctuations. b. Plausible relationships ... financial information may lead to the detection of material misstatements in the financial statements.

Last Answer : Plausible relationships among data may reasonably be expected to exist and continue in the absence of known conditions to the contrary.

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 alinternal control procedures a. That would aid in preventing fraud. b. Documented in the flowchart. c. Considered to be weaknesses that might allow errors to enter the accounting system. d. Considered to be strengths for which the auditor desires further reduction in the assessed level of control risk.l

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.

Which of the following procedures ordinarily performed during an audit are also performed in review? a. Assessment of accounting and internal control systems b. Test of controls c. Tests of records and of responses to inquiries d. Inquiry and analytical procedures

Description : Which of the following procedures ordinarily performed during an audit are also performed in review? a. Assessment of accounting and internal control systems b. Test of controls c. Tests of records and of responses to inquiries d. Inquiry and analytical procedures

Last Answer : Inquiry and analytical procedures

In the planning stage of an audit engagement, the auditor is required to perform audit procedures to obtain an understanding of the entity and its environment, including its internal control. These procedures are called a. Substantive tests b. Tests of controls c. Risk assessment procedures d. Dual-purpose tests

Description : In the planning stage of an audit engagement, the auditor is required to perform audit procedures to obtain an understanding of the entity and its environment, including its internal control. These ... a. Substantive tests b. Tests of controls c. Risk assessment procedures d. Dual-purpose tests

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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. Inherent risk is assessed at a sufficiently low level. d. The auditor can make constructive suggestions to management

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.

For the purpose of expressing negativeassurance in the review report, thepractitioner should obtain sufficientappropriate evidence primarily througha. Inquiry and confirmationb. Confirmation and tests of controlsc. Inquiry and analytical proceduresd. Analytical procedures and substantivetests of details of transactions andaccount balances

Description : For the purpose of expressing negativeassurance in the review report, the practitioner should obtain sufficient appropriate evidence primarily through a. Inquiry and confirmation b. Confirmation and ... d. Analytical procedures and substantive tests of details of transactions and account balances

Last Answer : Inquiry and analytical procedures

The auditor's evaluation of the likelihood of material employee fraud is normally done initially as a part of a. The assessment of whether to accept the audit engagement. b. Understanding the entity's internal control structure. c. The Tests of Controls. d. The Tests of Transactions

Description : The auditor's evaluation of the likelihood of material employee fraud is normally done initially as a part of a. The assessment of whether to accept the audit engagement. b. Understanding the entity's internal control structure. c. The Tests of Controls. d. The Tests of Transactions

Last Answer : Understanding the entity's internal control structure.

The auditor's evaluation of the likelihood of material employee fraud is normally done initially as a part of a. The assessment of whether to accept the audit engagement. b. Understanding the entity's internal control structure. c. The Tests of Controls. d. The Tests of Transactions

Description : The auditor's evaluation of the likelihood of material employee fraud is normally done initially as a part of a. The assessment of whether to accept the audit engagement. b. Understanding the entity's internal control structure. c. The Tests of Controls. d. The Tests of Transactions

Last Answer : Understanding the entity's internal control structure

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, will not be detected. b. During the course of our audit we may observe opportunities for economy in, or improved controls over, your operations. c. After performing our preliminary analytical procedures we will discuss with you the other procedures we consider necessary to complete the engagement. d. Fees for our services are based on our regular per diem rates, plus travel and other out-of-pocket expenses

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.

Which of the following does an auditor least likely perform in assessing audit risk? a. Understand the economic substance of significant transactions completed by the client. b. Understand the entity and the industry in which it operates. c. Gather audit evidence in support of recorded transactions. d. Obtain an understanding of the client's system of internal contro

Description : Which of the following does an auditor least likely perform in assessing audit risk? a. Understand the economic substance of significant transactions completed by the client. b. Understand the entity ... of recorded transactions. d. Obtain an understanding of the client's system of internal contro

Last Answer : Gather audit evidence in support of recorded transactions

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 will be minimized. c. Each account balance will be tested under either tests of controls or tests of transactions. d. The audit procedures selected will achieve specific audit objectives

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

An auditor should design a written audit program so that: a. All material transactions will be selected for substantive testing. b. Substantive tests prior to the balance sheet date will be minimized. c. The audit procedures selected will achieve specific audit objectives. d. Each account balance will be tested under either tests of controls or tests of transactions

Description : An auditor should design a written audit program so that: a. All material transactions will be selected for substantive testing. b. Substantive tests prior to the balance sheet date will be minimized ... . d. Each account balance will be tested under either tests of controls or tests of transactions

Last Answer : The audit procedures selected will achieve specific audit objectives

Risk assessment procedures include the following, except a. Analytical procedures. b. Confirmation of accounts receivablec. Observation and inspection.d. Inquiries of management

Description : Risk assessment procedures include the following, except a. Analytical procedures. b. Confirmation of accounts receivable c. Observation and inspection. d. Inquiries of management

Last Answer : Confirmation of accounts receivable

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 general plan for the audit work to be accomplished, timing of the work, and other matters of concern to the audit. c. Generic document that auditing firms have developed to lead the process of the audit through a systematic and logical process. d. Budget of the time that should be necessary to complete each phase of the audit procedure

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.

An audit plan is a a. Detailed plan of analytical proceduresand all substantive tests to be performedin the course of the audit.b. Generic document that auditing firmshave developed to lead the process ofthe audit through a systematic andlogical process.c. Budget of the time that should benecessary to complete each phase of theaudit procedures.d. Document that provides an overviewof the company and a general planfor the audit work to beaccomplished, timing of the work,and other matters of concern to theaudit

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

The review of unaudited financial statements consists of: a. Inquiry of management and analytical procedures. b. Inquiry of management and documentation of internal controls. c. Analytical procedures and compliance with laws and regulations. d. Internal control evaluation and management representation.

Description : The review of unaudited financial statements consists of: a. Inquiry of management and analytical procedures. b. Inquiry of management and documentation of internal controls. c. Analytical ... and compliance with laws and regulations. d. Internal control evaluation and management representation.

Last Answer : Inquiry of management and analytical procedures

Which of the following represents a procedure that the auditor may use because plausible relationships among financial statement balances are expected to exist? a. Attributes testing b. Enterprise risk assessment c. Inherent tests of control d. Analytical review

Description : Which of the following represents a procedure that the auditor may use because plausible relationships among financial statement balances are expected to exist? a. Attributes testing b. Enterprise risk assessment c. Inherent tests of control d. Analytical review

Last Answer : Analytical review

Audit programs generally include procedures to test actual transactions and resulting balances. These procedures are primarily designed to a. Detect irregularities that result in misstated financial statements. b. Test the adequacy of internal control. c. Gather corroborative evidence. d. Obtain information of informative disclosures

Description : Audit programs generally include procedures to test actual transactions and resulting balances. These procedures are primarily designed to a. Detect irregularities that result in misstated financial ... control. c. Gather corroborative evidence. d. Obtain information of informative disclosures

Last Answer : Gather corroborative evidence

Which of the following is most likely to be a response to the auditor's assessment that the risk of material misstatement due to fraud for the existence of inventory is high? a. Observe test counts of inventory at certain locations on an unannounced basis. b. Perform analytical procedures rather than taking test counts. c. Request that inventories be counted prior to year end. d. Request that inventory counts at the various locations be counted on different dates so as to allow the same auditor to be present at every count

Description : Which of the following is most likely to be a response to the auditor's assessment that the risk of material misstatement due to fraud for the existence of inventory is high? a. Observe test counts ... be counted on different dates so as to allow the same auditor to be present at every count

Last Answer : Observe test counts of inventory at certain locations on an unannounced basis.

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 substantive procedures. b. The systems approach focuses on detailed testing of specific accounts for accuracy, while the substantive approach is the testing controls to make sure they are effective. c. 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. d. The systems approach focuses on the use of computer systems to aid in the audit while the substantive approach focuses on more manual tests

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

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 auditor would most likely a. Perform further control tests to the extent outlined in the audit program. b. Determine the control policies and procedures that should prevent or detect errors and fraud. c. Set detection risk at a higher level than would be set under conditions of weak internal control. d. Set detection risk at a lower level than would be set under conditions of weak internal control.

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.

Which of the following procedures would an auditor be most likely to perform in planning a financial statement audit? a. Reviewing investment transactions of the audit period to determine whether related parties were created. b. Performing analytical procedures to identify areas that may represent specific risks. c. Obtaining a written representation letter from the client to emphasize management's responsibilities. d. Reading the minutes of stockholder and director meetings to discover whether any unusual transactions have occurred.

Description : Which of the following procedures would an auditor be most likely to perform in planning a financial statement audit? a. Reviewing investment transactions of the audit period to determine ... the minutes of stockholder and director meetings to discover whether any unusual transactions have occurred.

Last Answer : Performing analytical procedures to identify areas that may represent specific risks.

In the preparation of an audit program, which of the following items is not essential? a. Assessment of inherent risk b. The preparation of a budget identifying the costs of resources needed c. A review of material from prior audits d. An understanding of controls established by management

Description : In the preparation of an audit program, which of the following items is not essential? a. Assessment of inherent risk b. The preparation of a budget identifying the costs of resources needed c. A review of material from prior audits d. An understanding of controls established by management

Last Answer : The preparation of a budget identifying the costs of resources needed

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

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

Which of the following matters would an auditor most likely consider when establishing the scope of the audit?a. Audit areas where there is a higher risk of material misstatement. b. The expected audit coverage, including the number and locations of the entity's components to be included. c. The entity's timetable for reporting, such as at interim and final stages. d. The discussion with the entity's management concerning the expected communications on the status of audit work throughout the engagement and the expected deliverables resulting from the audit procedures.

Description : Which of the following matters would an auditor most likely consider when establishing the scope of the audit? a. Audit areas where there is a higher risk of material misstatement. ... status of audit work throughout the engagement and the expected deliverables resulting from the audit procedures.

Last Answer : The expected audit coverage, including the number and locations of the entity's components to be included.

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.

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

Which of the following statements is an not an example of an inherent limitation of internal control? a. The effectiveness of control procedures depends on segregation of duties. b. Errors may arise from mistakes in judgments. c. Most internal controls tend to be directed at routine transactions rather than nonroutine transactions. d. The cost-benefit relationship is a primary criterion in designing internal contro

Description : Which of the following statements is an not an example of an inherent limitation of internal control? a. The effectiveness of control procedures depends on segregation of duties. b. ... nonroutine transactions. d. The cost-benefit relationship is a primary criterion in designing internal contro

Last Answer : The effectiveness of control procedures depends on segregation of duties

An engagement to perform agreed-upon procedures may involve the auditor in performing certain procedures concerning I. Individual items of financial data. II. A single financial statement. III. A complete set of financial statements. a. I and II only b. II and III only c. I and III only d. I, II, and III

Description : An engagement to perform agreed-upon procedures may involve the auditor in performing certain procedures concerning I. Individual items of financial data. II. A single financial statement. III. A complete set of financial statements. ... only b. II and III only c. I and III only d. I, II, and III

Last Answer : I, II, and III

Which of the following conditions identified during fieldwork of an audit is most likely to affect the auditor’s assessment of the risk of misstatement due to fraud? a. Year-end adjusting journal entries. b. Checks for significant amounts outstanding at year-end. c. Missing documents. d. Computer generated documents

Description : Which of the following conditions identified during fieldwork of an audit is most likely to affect the auditor's assessment of the risk of misstatement due to fraud? a. Year-end adjusting ... for significant amounts outstanding at year-end. c. Missing documents. d. Computer generated documents

Last Answer : Missing documents

Which of the following is correct concerning requirements about auditor's communications about fraud? a. Fraud that involves senior management should be reported directly to the audit committee regardless of the amounts involved. b. All fraud with a material effect on the financial statements should be reported directly by the auditor to the SEC c. Fraud with a material effect on the financial statements should ordinarily be disclosed by the auditor through the use of an emphasis of a matter paragraph added to the audit report. d. The auditor has no responsibility to disclose fraud outside the entity under any circumstances

Description : Which of the following is correct concerning requirements about auditor's communications about fraud? a. Fraud that involves senior management should be reported directly to the audit committee ... . The auditor has no responsibility to disclose fraud outside the entity under any circumstances

Last Answer : Fraud that involves senior management should be reported directly to the audit committee regardless of the amounts involved

For a particular assertion, control risk is the risk that a. Controls will not detect a material misstatement that occurs. b. Audit procedures will fail to detect a weak control system. c. The prescribed control procedures will not be applied uniformly. d. A material misstatement will occur in theaccounting process

Description : For a particular assertion, control risk is the risk that a. Controls will not detect a material misstatement that occurs. b. Audit procedures will fail to detect a weak control system ... procedures will not be applied uniformly. d. A material misstatement will occur in theaccounting process

Last Answer : Controls will not detect a material misstatement that occurs

A successor auditor is required to communicate with the previous auditor. The primary concern in this communication is a. Information which will help the successor auditor in determining whether the client management has integrity. b. To learn about client by examining predecessor's working papers. c. To enable successor auditor to perform a more efficient audit. d. To save successor auditor time and money in gathering data.

Description : A successor auditor is required to communicate with the previous auditor. The primary concern in this communication is a. Information which will help the successor auditor in determining whether the client ... a more efficient audit. d. To save successor auditor time and money in gathering data.

Last Answer : Information which will help the successor auditor in determining whether the client management has integrity.

Which of the following procedures is normally performed in connection with a compilation engagement? a. Inquire of management about subsequent events b. Making inquiries of management concerning actions taken at board meeting c. Applying analytical review procedures d. Collect, classify and summarize financial information

Description : Which of the following procedures is normally performed in connection with a compilation engagement? a. Inquire of management about subsequent events b. Making inquiries of management ... meeting c. Applying analytical review procedures d. Collect, classify and summarize financial information

Last Answer : Collect, classify and summarize financial information

The type of transactions that ordinarily have a high inherent risk because they involve management judgments or assumptions are referred to as a. Estimation transactions. b. Nonroutine transactions. c. Related-party transactions. d. Routine transactions

Description : The type of transactions that ordinarily have a high inherent risk because they involve management judgments or assumptions are referred to as a. Estimation transactions. b. Nonroutine transactions. c. Related-party transactions. d. Routine transactions

Last Answer : Estimation transactions

To obtain an understanding of a continuing client’s business in planning an audit, an auditor most likely would a. Read specialized industry journals. b. Review prior year working papers and the permanent file for the client. c. Reevaluate the client’s internal control environment. d. Perform tests of details of transactions and balances

Description : To obtain an understanding of a continuing client's business in planning an audit, an auditor most likely would a. Read specialized industry journals. b. Review prior year working papers and ... the client's internal control environment. d. Perform tests of details of transactions and balances

Last Answer : Review prior year working papers and the permanent file for the client

Auditors perform analytical procedures in the planning stage of an audit for the purpose of: a. Determining which of the financial statement assertions are the most important for the client's financial statements. b. Determining the nature, timing, and extent of audit procedures for auditing the inventory. c. Deciding the matters to cover in an engagement. d. Identifying unusual conditions that deserve more auditing effort

Description : Auditors perform analytical procedures in the planning stage of an audit for the purpose of: a. Determining which of the financial statement assertions are the most important for the client's ... matters to cover in an engagement. d. Identifying unusual conditions that deserve more auditing effort

Last Answer : Identifying unusual conditions that deserve more auditing effort

Which of the following statements is true with regard to the relationship among audit risk, audit evidence, and materiality? a. The lower the inherent risk and control risk, the lower the aggregate materiality threshold. b. Under conditions of high inherent and control risk, the auditor should place more emphasis on obtaining external evidence and should reduce reliance on internal evidence. c. Where inherent risk is high and control risk is low, the auditor may safely ignore inherent risk. d. Aggregate materiality thresholds should not change under conditions of changing risk levels

Description : Which of the following statements is true with regard to the relationship among audit risk, audit evidence, and materiality? a. The lower the inherent risk and control risk, the lower ... inherent risk. d. Aggregate materiality thresholds should not change under conditions of changing risk levels

Last Answer : Under conditions of high inherent and control risk, the auditor should place more emphasis on obtaining external evidence and should reduce reliance on internal evidence

.If specific information comes to an auditor's attention that implies the existence of possible illegal acts that could have amaterial, but indirect effect on-the financialstatements, the auditor should nexta. Report the matter to an appropriate levelof management at least one level abovethose involved.b. Apply audit procedures specificallydirected to ascertaining whether anillegal act has occurred.c. Seek the advice of an informed expertqualified to practice law as to possiblecontingent liabilities.d. Discuss the evidence with the client'saudit committee, or others withequivalent authority.

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

Which of the following is considered a primary reason for creating an internal audit department? a. To safeguard resources entrusted to the organization. b. To evaluate and improve the effectiveness of control processes. c. To ensure the accuracy, reliability, and timeliness of financial and operating data used in management's decision making. d. To relieve management of the responsibility for establishing effective controls

Description : Which of the following is considered a primary reason for creating an internal audit department? a. To safeguard resources entrusted to the organization. b. To evaluate and improve the ... 's decision making. d. To relieve management of the responsibility for establishing effective controls

Last Answer : To evaluate and improve the effectiveness of control processes.

Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor auditor regarding a. Disagreements the predecessor had with the client concerning auditing procedures and accounting principles. b. The predecessor’s evaluation of matters of continuing accounting significance. c. The degree of cooperation the predecessor received concerning the inquiry of the client’s lawyer. d. The predecessor’s assessments of inherent risk and judgments about materiality

Description : Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor auditor regarding a. Disagreements the predecessor had with the client concerning auditing ... lawyer. d. The predecessor's assessments of inherent risk and judgments about materiality

Last Answer : Disagreements the predecessor had with the client concerning auditing procedures and accounting principles.

What is the responsibility of an auditor who is engaged to audit the financial statements of a government entity? a. Assess control risk with respect to each component of internal control. b. Assume responsibility for assuring that the entity complies with applicable laws and regulations. c. Obtain an understanding of the possible financial statement effects of laws and regulations having direct and material effects on amounts reported. d. Design the audit to provide reasonable assurance that the statements are free of material misstatements resulting from illegal acts having direct or indirect effects

Description : What is the responsibility of an auditor who is engaged to audit the financial statements of a government entity? a. Assess control risk with respect to each component of internal ... the statements are free of material misstatements resulting from illegal acts having direct or indirect effects

Last Answer : Obtain an understanding of the possible financial statement effects of laws and regulations having direct and material effects on amounts reported.

The exercise of due professional care requires that an auditor a. Use error-free judgment. b. Consider internal control, including tests of controls. c. Critically review the work done at every level of supervision. d. Examine all corroborating evidence available.

Description : The exercise of due professional care requires that an auditor a. Use error-free judgment. b. Consider internal control, including tests of controls. c. Critically review the work done at every level of supervision. d. Examine all corroborating evidence available.

Last Answer : Critically review the work done at every level of supervision

Which of the following statements concerning consulting services is incorrect? a. The performance of consulting services for audit clients does not, in and of itself, impair the auditor's independence. b. Consulting services differ fundamentally from the CPA's function of attesting to the assertions of other parties. c. Consulting services ordinarily involve external reporting. d. Most CPAs, including those who provide audit and tax services, also provide consulting services to their clients

Description : Which of the following statements concerning consulting services is incorrect? a. The performance of consulting services for audit clients does not, in and of itself, impair the auditor's ... including those who provide audit and tax services, also provide consulting services to their clients

Last Answer : Consulting services ordinarily involve external reporting

Reasonable assurance means: a. Gathering of all available corroborating evidence for the auditor to conclude that there are no material misstatements in the financial statements, taken as a whole. b. Gathering of the audit evidence necessary for the auditor to conclude that the financial statements, taken as a whole, are free from any misstatements. c. Gathering of the audit evidence necessary for the auditor to conclude that the financial statements are free of material unintentional misstatements. d. Gathering of the audit evidence necessary for the auditor to conclude that there are no material misstatements in the financial

Description : Reasonable assurance means: a. Gathering of all available corroborating evidence for the auditor to conclude that there are no material misstatements in the financial statements, taken as a whole. ... necessary for the auditor to conclude that there are no material misstatements in the financial

Last Answer : Gathering of the audit evidence necessary for the auditor to conclude that there are no material misstatements in the financial statements, taken as a whole