Strayer University, Washington DC ACC 403 Final Exam 1 Chp. 9-13

 
Course Auditing I
Test Final Exam Part 1

 Question 1
6 out of 6 points
 
  If an auditor believes the chance of financial failure is high and there is a corresponding increase in business risk for the auditor, acceptable audit risk would likely:

   
 Question 2
6 out of 6 points
 
  The preliminary judgment about materiality and the amount of audit evidence accumulated are ________ related.

   
 Question 3
6 out of 6 points
 
  Auditors generally allocate the preliminary judgment about materiality to the:
   
 Question 4
6 out of 6 points
 
  Auditors are ________ to document the known and likely misstatements in the financial statements under audit.

 Question 5
6 out of 6 points
 
  An auditor who audits a business cycle that has low inherent risk should:

 Question 6
6 out of 6 points
 
  When one material weakness is present at the end of the year, management of a public company must conclude that internal control over financial reporting is:

 Question 7
6 out of 6 points
 
  An audit procedure that would most likely be used by an auditor in performing tests of control procedures in which the segregation of functions and that leaves no "audit" trail is:

 Question 8
6 out of 6 points
 
  Which of the following is responsible for establishing a private company's internal control?

 Question 9
6 out of 6 points
 
  Internal controls normally include procedures designed to provide reasonable assurance that:

 Question 10
6 out of 6 points
 
  Internal controls:

 Question 11
6 out of 6 points
 
  Financial statement manipulation risk is arguably present for all companies' financial statements. However, the risk is elevated for companies that:

 Question 12
6 out of 6 points
 
  Which of the following is not a factor that relates to opportunities to misappropriate assets?

 Question 13
6 out of 6 points
 
  Two of the most useful warning signals that can indicate that revenue fraud is occurring are:

 Question 14
6 out of 6 points
 
  In the fraud triangle, fraudulent financial reporting and misappropriation of assets:

 Question 15
6 out of 6 points
 
  Which of the following is a factor that relates to incentives to misappropriate assets?

 Question 16
6 out of 6 points
 
  The audit approach in which the auditor runs his or her own program on a controlled basis to verify the client's data recorded in a machine language is:

 Question 17
0 out of 6 points
 
  Auditors should evaluate which of the following before evaluating application controls because of the potential for pervasive effects?

 Question 18
6 out of 6 points
 
  Which of the following is a component of general controls?

 Question 19
6 out of 6 points
 
  General controls may include firewalls which are used to protect from:

 Question 20
6 out of 6 points
 
  An internal control deficiency occurs when computer personnel:

 Question 21
6 out of 6 points
 
  Analytical procedures:

 Question 22
6 out of 6 points
 
  In the context of an audit of financial statements, substantive tests are audit procedures that:

 Question 23
6 out of 6 points
 
  A system walkthrough is primarily used to help the auditor:

 Question 24
6 out of 6 points
 
  Which of the following audit tests is usually the least costly to perform?

   
 Question 25
6 out of 6 points
 
  Presentation and disclosure related audit objectives would be performed in which phase of the audit process?