Which of the following is not one of the steps used to develop audit? objectives?
A.
know the specific audit objectives for classes of transactions
B.
know the proper type of audit opinion to issue
.C.
know the management assertions about the financial st
B
For publicly listed? companies, the auditor also issues which of the following reports in addition to a report containing the? auditor's opinion?
A.
a report on compliance with the Federal Securities Act
B.
a report on compliance with generally accepted a
D
In certifying their annual financial? statements, the CEO and CFO of a public company certify that the financial statements comply with the requirements of
A.
GAAP.
B.
the? Sarbanes-Oxley Act.
C.
GAAS.
D.
the Securities Exchange Act of 1934.
D
Management is not responsible for which of the? following?
A.
adopting sound accounting policies
B.
making fair representations in the financial statements
C.
issuing their own opinion on the fairness of the financial statements
D.
maintaining an effectiv
C
The auditor has no responsibility to plan and perform the audit to obtain reasonable assurance that misstatements that are not? ________ are detected.
A.
material to the financial statements
B.
identified by the client
C.
statistically significant to the
A
An auditor has a duty to
A.
be an insurer of the fairness in the statements.
B.
provide reasonable assurance that material misstatements will be detected.
C.
be equally responsible with management for the preparation of the financial statements.
D.
be a g
B
One of the characteristics of professional skepticism is? ________, which is the conviction to decide for? oneself, rather than accepting the claims of others.
A.
suspension of judgment
B.
interpersonal understanding
C.
autonomy
D.
?self-esteem
C
An auditor should recognize that the application of auditing procedures may produce evidence indicating the possibility of errors of fraud and therefore should
A.
not rely on internal controls that are designed to prevent or detect errors or fraud.
B.
des
C
When performing the review and completing the documentation and rationale for the conclusion step of the professional judgment? process, auditors will
A.
identify the issue.
B.
articulate in written form the rationale of their judgment.
C.
gather the fact
B
In order to mitigate? availability, the auditor should consult with others and make the opposing case.
True
False
TRUE
The most important general ledger account included in and affecting several cycles is the
A.
income tax expense and liability accounts.
B.
inventory account.
C.
cash account.
D.
retained earnings account.
C
Although auditors need to consider the interrelationships between? cycles, they typically treat cycles independently to the extent practical to manage complex audits effectively.
True
False
TRUE
The term audit objective refers to all of the following except for
A.
?cycle-related audit objectives.
B.
?transaction-related audit objectives.
C.
presentation and? disclosure-related audit objectives.
D.
?balance-related audit objectives.
A
When an auditor is determining what information to include in the notes to the financial statements relating to bonds? payable, he or she is concerned with the? transaction-related audit objectives.
True
False
FALSE
If a? short-term note payable is included in the accounts payable balance on the financial? statement, there is a violation of the
A.
classification assertion.
B.
cutoff assertion.
C.
existence assertion.
D.
completeness assertion.
A
Which of the following management assertions is not associated with classes of transactions and? events?
A.
accuracy
B.
classification
C.
rights and obligations
D.
occurrence
C
The? transaction-related audit objective that deals with whether recorded transactions have actually occurred is the completeness objective.
True
False
False
Balance-related audit objectives
A.
provide a framework to help the auditor accumulate sufficient appropriate evidence related to account balances.
B.
can have only one? specific-related audit objectives.
C.
are never applied to income statement accounts.
A
After the auditor has completed all audit? procedures, it is necessary to combine the information obtained to reach an overall conclusion as to whether the financial statements are fairly presented. This is a highly subjective process that relies heavily
D