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

Course Auditing I
Test Final Exam Part 1
 
Instructions This final exam consists of 25 multiple choice questions and covers the material in Chapters 9 through 13. There are five questions from each chapter.
 Question 1   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  Question 2   The preliminary judgment about materiality and the amount of audit evidence accumulated are ________ related.
 Question 3   Auditors generally allocate the preliminary judgment about materiality to the:
 Question 4     Auditors are ________ to document the known and likely misstatements in the financial statements under audit.
 Question 5   An auditor who audits a business cycle that has low inherent risk should:
 Question 6   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   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   Which of the following is responsible for establishing a private company's internal control?
 Question 9   Internal controls normally include procedures designed to provide reasonable assurance that:
 Question 10   Internal controls:
 Question 11   Financial statement manipulation risk is arguably present for all companies' financial statements. However, the risk is elevated for companies that:
 Question 12   Which of the following is not a factor that relates to opportunities to misappropriate assets?
 Question 13   Two of the most useful warning signals that can indicate that revenue fraud is occurring are:
 Question 14    In the fraud triangle, fraudulent financial reporting and misappropriation of assets:
 Question 15   Which of the following is a factor that relates to incentives to misappropriate assets?
 Question 16   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   Auditors should evaluate which of the following before evaluating application controls because of the potential for pervasive effects?
 Question 18    Which of the following is a component of general controls?
 Question 19    General controls may include firewalls which are used to protect from:
 Question 20   An internal control deficiency occurs when computer personnel:
 Question 21   Analytical procedures:
 Question 22    In the context of an audit of financial statements, substantive tests are audit procedures that:
 Question 23   A system walkthrough is primarily used to help the auditor:
 Question 24   Which of the following audit tests is usually the least costly to perform?
 Question 25   Presentation and disclosure related audit objectives would be performed in which phase of the audit process?