ACC 490 Auditing
FINAL EXAM
1.
Which one of the following is among the three components of
audit risk?
2.
The Hochfelder Case is important because it limited auditor
liability under:
3.
Which of the following is an INCORRECT statement concerning
one of the field work standards?
4.
An auditor would be most likely to issue a “summary of
findings” in connection with which one of the following types of services?
5.
Making sure that the detail of and accounts receivable file
agrees with the general ledger before the file is used to produce confirmations
is an example of which of the following audit procedures?
6.
The auditor has some control over:
7.
Concerning such matters as the integrity of management,
errors, and illegal acts, the auditor should plan the audit with an attitude
of:
8.
Incompatible duties are those that allow an irregularity to
be perpetrated:
9.
In making judgments about materiality at the account balance
level, the auditor must consider the relationship between it and financial
statement materiality. This should lead the auditor to plan the audit to
detect misstatements that:
10.
Which one of the following is NOT an inherent limitation in
an entity’s internal controls?
11.
Use of auditor judgment or of a risk matrix is necessary in
revising planned detection risk whenever:
12.
The auditor has decided to use PPS sampling in the
confirmation of individual sales transactions with customers. The
population and the logical sampling unit are most likely to be, respectively:
13.
Which of the following is NOT considered an access control?
14.
Which of the following is NOT an element of a computer-based
system?
15.
The use of computer systems in accounting creates more areas
where errors can occur. Which of the following should be of most concern?
Fill in the Blank
16.
Differences exist between the Securities Act of 1933 and
1934. More cases have been brought against auditors under the 1934 Act
because it applies to annual filings and…………….
17.
The type of risk that is independent of the audit of the
financial statements and therefore cannot be changed is…………….
18.
Occasionally, employees will work together to conceal
fraud. This is known as…………….
19.
Sometimes the auditor does not have the book value of the
individual items in the sample. In this case, the sampling technique to
be used is…………….
20.
According to the Sarbanes-Oxley Act of 2002, the
establishment and maintenance of internal controls is the responsibility
of…………….
True or False
21.
The fact that a company’s management does not place a high
priority on the entity’s values creates a high-risk condition.
22.
The AICPA provides a broad range of services to its members
and the accounting profession. Membership into this organization is
mandatory for Certified Public Accountants.
23.
In order to fully understand the internal controls of an
organization, the auditor must consider circumstances and judgment.
24.
The steps for assessing the risk of material misstatement in
the financial statements include evaluating the types of misstatements that
might occur and evaluating the likelihood and magnitude of potential
misstatements.
25.
Computer abuse and computer fraud essentially mean the same
thing.
26.
A CPA Risk Advisory service consists of decision makers who
are not a member of management or a board of directors.
27.
Internal control can provide absolute assurance to a
company’s management and board of directors regarding the entity’s ability to
achieve objectives.
28.
The auditor has a responsibility to determine if substantial
doubt exists, as of the date of the audit report, regarding the entity’s
ability to continue as a going concern for the following year.
