AUE2601 FINAL EXAM 4 Semester 2 2024 All Questions covered 100%
0 view 0 purchase
Course
AUE2601
Institution
AUE2601
AUE2601 FINAL EXAM 4
Semester 2 2024 All Questions
covered 100%
A. Assessing control risk may be performed concurrently during an audit with
obtaining an understanding of the entity's internal control - ANS-Which of the
following statements is correct concerning an auditor's assessment of ...
AUE2601 FINAL EXAM 4
Semester 2 2024 All Questions
covered 100%
A. Assessing control risk may be performed concurrently during an audit with
obtaining an understanding of the entity's internal control - ANS-Which of the
following statements is correct concerning an auditor's assessment of control
risk?
A. Assessing control risk may be performed concurrently during an audit with
obtaining an understanding of the entity's internal control.
B. Evidence about the operation of controls in prior audits may not be considered
during the current year's assessment of control risk.
C. The basis for an auditor's conclusions about the assessed level of control risk
need not be documented unless control risk is assessed at the maximum level.
D. The lower the assessed level of control risk, the less assurance the evidence
must provide that the controls are operating effectively.
(Risk Assessments and Internal Control)
Third audit - ANS-According to PSA 330 (The Auditor's Procedures in Response to
Assessed Risks), an auditor who plans to rely on controls that have not changed
,since they were last tested should test the operating effectiveness of such
controls at least once every
(Risk Assessments and Internal Control)
Reperformance and observation. - ANS-In performing tests of the operating
effectiveness of an entity's controls, an auditor selects from a variety of
techniques, including
(Risk Assessments and Internal Control)
Inquiry and observation - ANS-An auditor intends to perform tests of control on a
client's cash disbursements procedures. If the control procedures leave no audit
trail of documentary evidence, the auditor most likely will test the procedures by
(Risk Assessments and Internal Control)
B. Examine shipping documents for matching sales invoices. - ANS-Which of the
following tests of controls most likely would help assure an auditor that goods
shipped are properly billed?
A. Scan the sales journal for sequential and unusual entries.
B. Examine shipping documents for matching sales invoices.
C. Compare the accounts receivable ledger to daily sales summaries.
D. Inspect unused sales invoices for consecutive prenumbering.
,(Risk Assessments and Internal Control)
Tests of controls and limited tests of current year property and equipment
transactions. - ANS-When there are numerous property and equipment
transactions during the year, an auditor who plans to assess control risk at a low
level usually performs
(Risk Assessments and Internal Control)
A. I only - ANS-Misstatements in the financial statements can arise from fraud or
error. The distinguishing factor between fraud and error is whether the
underlying action that results in the misstatement of the financial statements is
I. Intentional or unintentional.
II. Rational or irrational.
A. I only C. Both I and II
B. II only D. Neither I nor II.
Independent professional services that are intended to enhance the credibility of
information to meet the needs of an intended user - ANS-Which of the following
statements best describes assurance services?
(Auditing Theory: Assurance Services)
Compilation of financial information - ANS-Which of the following is NOT an
assurance service?
(Auditing Theory: Assurance Services)
, Neutral criteria contribute to conclusions that are free from bias. - ANS-Suitable
criteria are required for reasonably consistent evaluation or measurement of the
subject matter of an assurance engagement. Which of the following statements
concerning the characteristics of suitable criteria is correct?
(Auditing Theory: Assurance Services)
Subject matter information - ANS-In an assurance engagement, the outcome of
the evaluation or measurement of a subject matter against criteria is called
(Auditing Theory: Assurance Services)
Assertion-based engagements - ANS-In some assurance engagements, the
evaluation or measurement of the subject matter is performed by the responsible
party, and the subject matter information is in the form of an assertion by the
responsible party that is made available to intended users. These engagements
are called
(Auditing Theory: Assurance Services)
Reasonable assurance engagement - ANS-What type of assurance engagement is
involved when the practitioner expresses a positive form of conclusion?
(Auditing Theory: Assurance Services)
Limited assurance engagement - ANS-What type of assurance engagement is
involved when the practitioner expresses a negative form of conclusion?
(Auditing Theory: Assurance Services)
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller joycewanjiku0036. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $17.99. You're not tied to anything after your purchase.
