Test Bank For Auditing An International Integrated Approach |Latest Update | Questions and Correct Answers |Rated A+
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Course
Audit
Institution
Audit
Test Bank For Auditing An International Integrated Approach |Latest Update | Questions and Correct Answers |Rated A+
Test Bank For Auditing An International Integrated Approach |Latest Update | Questions and Correct Answers |Rated A+
Test Bank For Auditing An International Integrated Approach...
Test Bank For Auditing An
International/Intergrated Approach 7 Edition
Bewley
:
1. Business processes cross boundaries between functional areas of
anorganization. Business process management systems have
been facilitated by .
1
A. management information systems
.
B. enterprise resource planning systems
, C. database management systems
D. Web-based application systems
The business process view also highlights the fact that business
organizations .
A. differ in terms of the technology they use
2
B. essentially all perform the same activities
.
C. should simplify their business to follow clear rules
D. work best when run as a hierarchy
Quality of earnings refers to .
A. the accuracy of the net income calculation
3
B. a company’s ability to continue earning at its current level
.
C. how closely earnings per share agree to analyst predictions
D. the percentage of net income to total revenue
The audit objective specifying that “all recorded assets, liabilities, and
4
transactions represent real assets, liabilities, revenues, and expenses” is
. related most closely to which assertion(s)?
A. Existence or occurrence.
, B. Rights and obligations.
C. Completeness.
D. Presentation and disclosure.
Three key management assertions about items on the balance sheet are
.
A. occurrence, completeness, and accuracy
5
B. classification, existence, and cut-off
.
C. confirmation, presentation, and disclosure
D. existence, completeness, and presentation
The valuation assertion includes .
A. the measurement assumption used
6
B. ensuring all inventory is counted
.
C. making sure that all receivables relate to sales during the year
D. the method of presenting short-term and long-term liabilities
7
What is inherent risk?
.
, A. The probability that some accounts are more susceptible to misstatement than others.
B. The probability that the client’s internal control policies and procedures will fail to detect material
C. The probability that material misstatements have occurred in transactions entering the accounting sy
D. The probability that the auditor may not detect material misstatements in the financial statements.
Theoretically, when assessing the inherent risk related to an account
balance, an auditor does not explicitly consider the .
A. liquidity of the account
8
B. management estimates involved in determining the account balance
.
C. internal control policies and procedures
D. complexity of calculations involved
The ultimate purpose of assessing control risk is to contribute to the
auditor’s evaluation of the .
A. factors that raise doubts about the auditability of the financial statements
9
B. operating effectiveness of internal control policies and procedures
.
C. risk that material misstatements exist in the financial statements
D. possibility that the nature and extent of substantive tests may be reduced
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