Audit Exam
Audit exam 1
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1.
A
Which is usually included in an engagement letter? (A reference to GAAP/A reference to GAAS)
A. Yes/Yes
B. No/No
C. Yes/No
D. No/Yes
2.
A
Which of the following statements is true?
A) Auditors have generally found that the most effective and efficient way to conduct an audit is to obtain some assurance for each class of transaction and for the ending balance of the related account.
B) Management 's assertions follow and are closely related to the audit objectives.
C) The auditor 's primary responsibility is to find and disclose fraudulent management assertions.
D) Assertions about presentation and disclosure deal with whether the accounts have been included in the financial statements at appropriate amounts.
3.
A
After general audit objectives are understood, specific audit objectives for each account balance on the financial statements can be developed. Which of the following statements is true?
A) There should be at least one specific objective for each relevant general objective.
B) There will be only one specific objective for each relevant general objective.
C) There will be many specific objectives developed for each relevant general objective.
D) There must be one specific objective for each general objective.
4.
A
An auditor uses monetary unit sampling with a sampling interval of $20,000 and detects an item with a recorded amount of $10,000 with an audited value of $4,000. The projected misstatement of the sample is:
A) $12,000.
B) $6,000.
C) $10,000.
D) $3,000.
5.
A
The primary difference between an audit of the balance sheet and an audit of the income statement is that the audit of the income statement deals with the verification of:
A) transactions.
B) balances.
C) costs.
D) cutoffs.
6.
A
The objective of the ordinary audit of financial statements is the expression of an opinion on:
A) the fairness of the financial
Study online at quizlet.com/_flu67
1.
A
Which is usually included in an engagement letter? (A reference to GAAP/A reference to GAAS)
A. Yes/Yes
B. No/No
C. Yes/No
D. No/Yes
2.
A
Which of the following statements is true?
A) Auditors have generally found that the most effective and efficient way to conduct an audit is to obtain some assurance for each class of transaction and for the ending balance of the related account.
B) Management 's assertions follow and are closely related to the audit objectives.
C) The auditor 's primary responsibility is to find and disclose fraudulent management assertions.
D) Assertions about presentation and disclosure deal with whether the accounts have been included in the financial statements at appropriate amounts.
3.
A
After general audit objectives are understood, specific audit objectives for each account balance on the financial statements can be developed. Which of the following statements is true?
A) There should be at least one specific objective for each relevant general objective.
B) There will be only one specific objective for each relevant general objective.
C) There will be many specific objectives developed for each relevant general objective.
D) There must be one specific objective for each general objective.
4.
A
An auditor uses monetary unit sampling with a sampling interval of $20,000 and detects an item with a recorded amount of $10,000 with an audited value of $4,000. The projected misstatement of the sample is:
A) $12,000.
B) $6,000.
C) $10,000.
D) $3,000.
5.
A
The primary difference between an audit of the balance sheet and an audit of the income statement is that the audit of the income statement deals with the verification of:
A) transactions.
B) balances.
C) costs.
D) cutoffs.
6.
A
The objective of the ordinary audit of financial statements is the expression of an opinion on:
A) the fairness of the financial