10/31/23,
9:08
PM
Lesson
10
Quiz
Due
Oct
31
at
11:59pm
Available
until
Oct
31
at
11:59pm
Lesson
10
Quiz:
ACC
450:
Principles
of
Auditing
(2023
Fall
-
B)
Points
10
Allowed
Attempts
Unlimited
Instructions
Questions
10
Time
Limit
None
Some,
but
not
all,
of
the
responses
have
explanations
for
why
they
are
correct
or
incorrect.
Click
Take
the
Quiz
to
begin.
Take
the
Quiz
Again
Attempt
History
KEPT
LATEST
Attempt
Time
Score
Attempt
2
1
minute
10
out
of
10
Attempt
2
1
minute
10
out
of
10
Attempt
1
14
minutes
9
out
of
10
Score
for
this
attempt:
10
out
of
10
Submitted
Oct
31
at
9:07pm
This
attempt
took
1
minute.
Correctl
Question
1
1/1
pts
Which
of
the
following
is
a
key
component
of
the
planning
audit
specifics?
)
Developing
audit
time
budgets
https://canvas.asu.edu/courses/159839/quizzes/1199874
1/7
10/31/23,
9:08
PM
Lesson
10
Quiz:
ACC
450:
Principles
of
Auditing
(2023
Fall
-
B)
——
"
Nice
job!
Review
page
158
of
the
textbook
for
information
on
-~
planning
audit
specifics.
Now
get
back
to
work.
Signing
engagement
letter
Testing
ICFR
Issuance
of
an
audit
report
Question
2
1/1
pts
Which
of
the
following
factor(s)
do
audit
managers
usually
consider
when
developing
audit
time
budgets?
Changes
in
the
company’s
business
from
prior
year
Actual
audit
hours
in
the
prior
year
Correct!
)
BothA&B
"
Nice
job!
Review
pages
160-161
of
the
text
for
information
on
-
developing
audit
time
budgets.
Now
get
back
to
work.
None
of
the
above
Question
3
1/1pts
Under
which
of
the
following
circumstances
time
budgets
for
the
audit
engagement
may
be
adjusted
downward
compared
to
prior
year?
https://canvas.asu.edu/courses/159839/quizzes/1199874
2/7
10/31/23,
9:08
PM
Lesson
10
Quiz:
ACC
450:
Principles
of
Auditing
(2023
Fall
-
B)
This
is
a
private
company
and
there
is
no
need
to
test
the
operating
effectiveness
of
internal
controls
because
it
was
tested
last
year
Prior
year’s
audit
budget
was
significantly
higher
than
the
actual
audit
hours
Correct!
)
BothA&B
—
i
Nice
job!
Review
pages
160-161
of
the
text
for
information
on
-
developing
audit
time
budgets.
Now
get
back
to
work.
None
of
the
above
Question
4
1/1
pts
Which
of
the
following
statements
is
not
correct
concerning
audit
time
budgets?
Audit
time
budgets
are
developed
based
on
actual
hours
worked
on
the
last
year
audit
engagement
Audit
seniors
may
be
involved
in
developing
audit
time
budgets
Correct!
\/
Higher
acceptable
detection
risk
will
likely
result
in
a
higher
audit
time
budget
Nice
job!
If
the
amount
of
detection
risk
that
is
acceptable
is
higher,
then
less
time
would
need
to
be
spent
auditing
that
specific
area.
Review
pages
160-161
of
the
text
for
information
on
developing
audit
time
budgets.
Now
get
back
to
work.
https://canvas.asu.edu/courses/159839/quizzes/1199874
3/7
10/31/23,
9:08
PM
Correctl
Correctl
Lesson
10
Quiz:
ACC
450:
Principles
of
Auditing
(2023
Fall
-
B)
Higher
inherent
risk
will
likely
result
in
a
higher
audit
time
budget
Question
5
171
pts
Which
of
the
following
is
true
about
the
planning
analytical
procedures?
®
Their
primary
objective
is
to
identify
areas
of
risk
during
the
audit
planning
stage
——
"
Nice
job!
Review
pages
161-164
of
the
text
for
information
on
~
planning
analytical
procedures.
Now
get
back
to
work.
They
provide
audit
evidence
in
testing
that
was
planned
by
the
auditors
They
are
not
required
during
the
planning
stage
All
of
the
above
Question
6
1/1
pts
Anna
is
an
audit
senior
in
the
audit
engagement
of
Karenina
Inc.
She
wants
to
apply
analytical
procedures
at
the
planning
stage.
Which
of
the
following
analytical
procedures
are
available
to
her?
Analysis
of
trends
over
time
Comparison
with
industry
norms
)
BothA&B
https://canvas.asu.edu/courses/159839/quizzes/1199874
417
10/31/23,
9:08
PM
Lesson
10
Quiz:
ACC
450:
Principles
of
Auditing
(2023
Fall
-
B)
——
"
Nice
job!
Review
pages
161-164
of
the
text
for
information
on
planning
analytical
procedures.
Now
get
back
to
work.
None
of
the
above
Question
7
1/1
pts
Which
of
the
following
statements
is
correct
about
planning
materiality?
Correct!
®
It
is
a
measure
of
the
size
of
misstatements
that
the
auditor
decided
to
look
for
"
Nice
job!
Review
pages
164-165
of
the
text
for
information
about
-
planning
materiality.
Now
get
back
to
work.
It
applies
only
to
auditing
revenue
of
the
audit
client
during
the
audit
period
It
applies
only
to
auditing
assets
and
liabilities
of
the
audit
client
None
of
the
above
Question
8
1/1pts
Which
of
the
following
methods
may
be
used
by
the
auditor
to
calculate
the
planning
materiality?
5%
to
10%
of
net
income
1%
to
2%
of
total
assets
https://canvas.asu.edu/courses/159839/quizzes/1199874
5/7
10/31/23,
9:08
PM
Correctl
Correctl
Lesson
10
Quiz:
ACC
450:
Principles
of
Auditing
(2023
Fall
-
B)
1%
to
2%
of
total
equity
'
Any
of
the
above
—
|
.~
Nice
job!
Review
pages
164-165
of
the
text
for
information
about
~
planning
materiality.
Now
get
back
to
work.
Question
9
1/1
pts
Which
of
the
following
best
describes
tolerable
misstatement?
It
is
@
misstatement
that
the
auditor can
ignore
if
detected
It’'s
a
portion
of
planning
materiality
allocated
to
auditing
an
account
or
a
class
of
transactions
——
"
Nice
job!
Review
pages
165-170
of
the
text
for
information
on
!
tolerable
misstatements.
Now
get
back
to
work.
Tolerable
misstatement
can
be
larger
than
the
planning
materiality
All
of
the
above
Question
10
111
pts
Which
of
the
following
approaches
can
be
used
by
auditors
to
determine
the
tolerable
misstatement
(TM)
for
each
account
or
class
of
transactions?
As
the
same
percentage
of
the
planning
materiality
https://canvas.asu.edu/courses/159839/quizzes/1199874
6/7
10/31/23,
9:08
PM
Lesson
10
Quiz:
ACC
450:
Principles
of
Auditing
(2023
Fall
-
B)
Judgmentally,
to
minimize
the
amount
of
audit
work
According
to
the
size
of
each
account
Correctl
)
Any
of
the
above
"
Nice
job!
Review
pages
165-170
of
the
text
for
information
on
l
tolerable
misstatements.
Now
get
back
to
work.
Quiz
Score:
10
out
of
10
https://canvas.asu.edu/courses/159839/quizzes/1199874
717
