Audit Final Multiple Choice
Terms in this set (3)
When auditors become aware of noncompliance with a law or regulation committed by client personnel, the primary reason that the auditors should obtain a better understanding of the nature of the act is to:
A. Recommend remedial actions to the audit committee
B. Evaluate the effect of noncompliance on the financial statements
C. Determine whether to contact law enforcement officials
D. Determine whether other similar acts have occurred
Which of the following statements best describes auditor's responsibility for detecting a clients noncompliance with a law or regulation
A. The responsibility for detecting noncompliance exactly parallels the responsibilities for errors and fraud
B. Auditors must design tests to detect all material noncompliance that indirectly affects the financial statements
C. Auditors must design tests to obtain reasonable assurance that all noncompliance with direct material financial statements effects is detected.
D. Auditors must design tests to detect all noncompliance that directly affects the financial statements.
A Primary objective of analytical procedures used in the final review stage of an audit is to...
A. Identify account balances that represent specific risks relevant to the audit
B. Gather evidence from tests of details to corroborate financial statement assertions
C. Detect fraud that may cause the financial statements to be misstated
D. Assist the auditor in evaluating the overall financial statement presentations
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Test 2 Other Short Answers
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Test 2 Short Answer Questions
THIS SET IS OFTEN IN FOLDERS WITH...
Auditing Chapter 1
Auditing Chapter 2
Chapter 5: Risk Assessment