Acc/490 Week 4
Practice Exam – 10 Points
ACC/490 Auditing
Student Name:
Multiple Choice – Highlight the best answer Point Value: .25 each
1. Which one of the following is among the three components of audit risk?
a. incurrence risk
b. occurrence risk
c. rejection risk
d. control risk
2. The Hochfelder Case is important because it limited auditor liability under:
a. the 1933 Securities Act.
b. the 1934 Securities Exchange Act.
c. common law.
d. RICO.
3. Which of the following is an INCORRECT statement concerning one of the field work standards?
a. Audit planning includes the development of audit strategies.
b. Audit planning is aimed primarily at effectiveness, with little effect on efficiency.
c. Understanding of the internal control structure is necessary in order to plan the audit.
d. The auditor must have a reasonable basis, in the form of gathered evidence, for expressing an opinion.
4. An auditor would be most likely to issue a “summary of findings” in connection with which one of the following types of services?
a. a financial statement audit
b. consulting services
c. an operational audit
d. a review
5. Making sure that the detail of and accounts receivable file agrees with the general ledger before the file is used to produce …show more content…
The generalized auditing software is designed to be used, and is adaptable to virtually any organization that requires auditing services. Audit software can be further selected as appropriate depending on the type of audit that needs to be performed. For example, an organization with a control environment that is high risk or ineffective can be tailored to by using auditing software that incorporates high fraud risk environments. Organizations that have a greater than average susceptibility to risk in the network environment should use auditing software specifically designed to address these
ACC/490 Auditing
Student Name:
Multiple Choice – Highlight the best answer Point Value: .25 each
1. Which one of the following is among the three components of audit risk?
a. incurrence risk
b. occurrence risk
c. rejection risk
d. control risk
2. The Hochfelder Case is important because it limited auditor liability under:
a. the 1933 Securities Act.
b. the 1934 Securities Exchange Act.
c. common law.
d. RICO.
3. Which of the following is an INCORRECT statement concerning one of the field work standards?
a. Audit planning includes the development of audit strategies.
b. Audit planning is aimed primarily at effectiveness, with little effect on efficiency.
c. Understanding of the internal control structure is necessary in order to plan the audit.
d. The auditor must have a reasonable basis, in the form of gathered evidence, for expressing an opinion.
4. An auditor would be most likely to issue a “summary of findings” in connection with which one of the following types of services?
a. a financial statement audit
b. consulting services
c. an operational audit
d. a review
5. Making sure that the detail of and accounts receivable file agrees with the general ledger before the file is used to produce …show more content…
The generalized auditing software is designed to be used, and is adaptable to virtually any organization that requires auditing services. Audit software can be further selected as appropriate depending on the type of audit that needs to be performed. For example, an organization with a control environment that is high risk or ineffective can be tailored to by using auditing software that incorporates high fraud risk environments. Organizations that have a greater than average susceptibility to risk in the network environment should use auditing software specifically designed to address these