Strayer Washington DC ACC 403 Quiz 4 Chp 9 (2014)

Course Auditing I
Test Quiz 4
Instructions This quiz consists of 15 multiple choice questions and covers the material in Chapter 9. Be sure you are in the correct Chapter when you take the quiz.
•  Question 1   The preliminary judgment about materiality and the amount of audit evidence accumulated are ________ related.
•  Question 2   Auditors generally allocate the preliminary judgment about materiality to the:
•  Question 3   If an auditor establishes a relatively high level for materiality, then the auditor will:
•  Question 4   Auditors frequently refer to the terms audit assurance, overall assurance, and level of assurance to refer to ________.
•  Question 5   Auditors typically rely on internal controls of their private company clients:
•  Question 6   Why do auditors establish a preliminary judgment about materiality?
•  Question 7   Inherent risk and control risk:
•  Question 8   As the risk of material misstatement increases, detection risk should:
•  Question 9   When management has an adequate level of integrity for the auditor to accept the engagement but cannot be regarded as completely honest in all dealings, auditors normally:
•  Question 10    As the acceptable level of detection risk increases, an auditor may change the:
•  Question 11   When the auditor is attempting to determine the extent to which external users rely on a client's financial statements, they may consider several factors except for:
•  Question 12   When auditors allocate the preliminary judgment about materiality to account balances, the materiality allocated to any given account balance is referred to as:
•  Question 13   If it is probable that the judgment of a reasonable person will be changed or influenced by the omission or misstatement of information, then that information is, by definition of FASB Statement No. 2:
•  Question 14   When taken together, the concepts of risk and materiality in auditing:
•  Question 15   Inherent risk is ________ related to detection risk and ________ related to the amount of audit evidence.