Like this study set? Create a free account to save it.

Sign up for an account

Already have a Quizlet account? .

Create an account

Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor auditor regarding the predecessor's

understanding as to the reasons for the change of auditors.

A written understanding between the auditor and the client concerning the auditor's responsibility for the discovery of illegal acts is usually set forth in an

Engagement Letter.

Miller Retailing, Inc., maintains a staff of three full-time internal auditors who report directly to the audit committee. In planning to use the internal auditors to help in performing the audit, the independent auditor most likely will

place limited reliance on the work performed by the internal auditors.

During the initial planning phase of an audit, a CPA most likely would

discuss the timing of the audit procedures with the client's management.

As generally conceived, the audit committee of a publically held company should be made up of

members of the board of directors who are not officers or employees.

An auditor who discovers that a client's employees paid small bribes to municipal officials most likely would withdraw from the engagement if

management fails to take the appropriate remedial action.

Which of these statements concerning illegal acts by clients is correct?

An auditor's responsibility to detect illegal acts that have a direct and material effect on the financial statements is the same as that for errors and fraud.

To help plan the nature, timing, and extent of substantive procedures, preliminary analytical procedures should focus on

enhancing the auditor's understanding of the client's business and of events that have occurred since the last audit date.

The primary objective of final analytical procedures is to

assist the auditor in assessing the validity of the conclusions reached.

For all audits of financial statements made in accordance with generally accepted auditing standards, the use of analytical procedures is required to some extent

in the planning and review stages, not REQUIRED in the substantive test.

The substantive analytical procedure known as trend analysis is best described as

the examination of changes in an account over time.

The assurance bucket is filled with all the following types of evidence except

the audit report.

Please allow access to your computer’s microphone to use Voice Recording.

Having trouble? Click here for help.

We can’t access your microphone!

Click the icon above to update your browser permissions and try again


Reload the page to try again!


Press Cmd-0 to reset your zoom

Press Ctrl-0 to reset your zoom

It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.

Please upgrade Flash or install Chrome
to use Voice Recording.

For more help, see our troubleshooting page.

Your microphone is muted

For help fixing this issue, see this FAQ.

Star this term

You can study starred terms together

Voice Recording