ma quiz 7

Question 1

0 out of 1 points

An example of a reclassification entry would be an entry: Answer

Selected Answer:

to increase the income tax liability account when it was discovered that

the tax rate would be higher than originally estimated.

Correct Answer:

to change material credit balances in accounts receivable accounts to

accounts payable accounts.

Response Feedback: Refer page: 237

Question 2

1 out of 1 points

The auditor needs to understand the control environment (management and governance) because: Answer

Selected Answer: both A and B.

Correct Answer: both A and B.

Response Feedback:

Refer page: 227-228

Question 3

0 out of 1 points

Auditors should plan engagements properly to: Answer

Selected Answer: [None Given]

Correct Answer: all of the above.


Question 4

0 out of 1 points

The largest portion of the auditor's working papers is the: Answer

Selected Answer: adjusting and reclassification entries.

Correct Answer: supporting schedules.


Question 5

1 out of 1 points

The working papers are: Answer

Selected Answer:

the primary means of documenting that an adequate audit was

conducted in accordance with auditing standards.

Correct Answer:




Question 6

0 out of 1 points

Most auditors assess inherent risk as high for related parties and related-party transactions because: Answer

Selected Answer:

it is required by generally accepted accounting principles.



Question 7

1 out of 1 points

The primary purpose of an engagement letter is to establish a clear understanding of the terms of the engagement between the client and the auditor. Answer

Selected Answer: True

Correct Answer: True


Question 8

1 out of 1 points

ACL is a software package which assists auditors by performing tests on a client's electronic data. Answer




Question 9

1 out of 1 points

Reclassification entries are recorded in the: Answer

Selected Answer:

financial statements but not in the general ledger.

Correct Answer: financial statements but not in the general ledger.


Question 10

0 out of 1 points

Which of the following eliminates voluminous details from the auditor's working trial balance by classifying and summarising similar or related items? Answer

Selected Answer:

Account analyses

Correct Answer: Lead schedules


Question 1

0 out of 1 points

Information such as organisation charts, flowcharts and questionnaires related to the auditor's understanding of internal control is typically included in the permanent files of the auditor's working papers.

Answer

Selected Answer:

False



Question 2

0 out of 1 points

A measure of how willing the auditor is to accept that the financial statements may be materially misstated after the audit is completed and an unqualified opinion has been issued is called:

Answer

Selected Answer: inherent risk.

Correct Answer: acceptable audit risk.


Question 3

1 out of 1 points

The purpose of requiring communication between the predecessor and successor auditor is:

Answer

Selected Answer:

to help the successor audit to evaluate whether to accept the

engagement.

Correct Answer: to help the successor audit to evaluate whether to accept the

engagement.


Question 4

1 out of 1 points

Working papers can be viewed by different audit personnel simultaneously, by using:

Answer

Selected Answer: Groupshare software programs.

Correct Answer: Groupshare software programs.


Question 5

1 out of 1 points

Which one of the following would ordinarily not be found in the permanent file?

Answer

Selected Answer: The name of the predecessor auditor

Correct Answer: The name of the predecessor auditor


Question 6

1 out of 1 points

When an auditor decides on a higher acceptable audit risk, one effect is that the auditor wants to be more certain the accounts are not materially misstated.

Answer

Selected Answer: False

Correct Answer: False


Question 7

1 out of 1 points

One of the first things that the auditor will do after accepting a new client is:

Answer

Selected Answer: tour the client's facilities.

Correct Answer: tour the client's facilities.


Question 8

1 out of 1 points

Which of the following is not one of the three main reasons why the auditor should properly plan engagements?

Answer

Selected Answer: To enable proper on-the-job training of employees

Correct Answer: To enable proper on-the-job training of employees


Question 9

1 out of 1 points

The primary purpose of an engagement letter is to establish a clear understanding of the terms of the engagement between the client and the auditor.

Answer




Question 10

1 out of 1 points

During the course of an audit engagement an auditor prepares and accumulates audit working papers. The audit working papers should then be kept:

Answer

Selected Answer: for a period of no less than 7 years.

Correct Answer: for a period of no less than 7 years.


Saturday, 16 April 2011 12:35:42 AM EST

Question 1

1 out of 1 points

The official record of the meetings of the board of directors and shareholders is contained in the: Answer

Selected Answer: minutes.

Correct Answer: minutes.


Question 2

0 out of 1 points

Policies, procedures and guidance for auditors regarding the acceptance and continuance of client relationships are found in: Answer

Selected Answer:

ASA 220

Correct Answer: Both A & B


Question 3

1 out of 1 points

A working trial balance is: Answer

Selected Answer: a listing of the general ledger accounts and their year-end balances.

Correct Answer: a listing of the general ledger accounts and their year-end balances.


Question 4

1 out of 1 points

Only those adjusting and reclassification entries that significantly affect the fair presentation of financial statements (i.e. material entries) should be documented or summarised in the auditor's working papers. Answer




Question 5

1 out of 1 points

Working papers can be viewed by different audit personnel simultaneously, by using: Answer




Question 6

1 out of 1 points

A measure of the auditor's assessment of the likelihood that there are material misstatements in an account before considering the effectiveness of the client's internal control is called: Answer


Correct Answer: inherent risk.


Question 7

1 out of 1 points

Which one of the following would not fit the description of a related-party transaction? Answer

Selected Answer:

An unusually large sale of merchandise to the company's best and

largest customer

Correct Answer:


largest customer

Response Feedback:

Refer page: 227. A customer is not considered a "related party" to the company.

Question 8

1 out of 1 points

Good working papers should have common characteristics. Which one of the following is not one of those characteristics? Answer

Selected Answer:

Noting the client staff member responsible for the particular area

under review.

Correct Answer: Noting the client staff member responsible for the particular area

under review.


Question 9

1 out of 1 points





Question 10

1 out of 1 points


Selected Answer:



Correct Answer:




Tuesday, 12 April 2011 9:51:00 PM EST

Question 1

1 out of 1 points

Copies of the client's constitution and organisation chart are normally included in the permanent file of the auditor's working papers. Answer




Question 2

0 out of 1 points





Question 3

0 out of 1 points

Which of the following would not be a consideration of an audit firm in deciding whether to accept a new client? Answer

Selected Answer: Client's financial stability

Correct Answer: Client's probability of achieving an unqualified opinion


Question 4

0 out of 1 points

When a successor (new) auditor requests information from a company's previous auditor, and there are legal problems or disputes between the client and the predecessor auditor, the predecessor auditor's response to the new auditor can be limited to stating that no information will be provided. Answer

Selected Answer:

False



Question 5

1 out of 1 points

Because company policies are reflected in the financial statements, it is important that auditors: Answer

Selected Answer: all of the above.



Question 6

0 out of 1 points

The second step in accepting an audit engagement and initial planning is to: Answer

Selected Answer:

obtain a mutual understanding with the client about the terms of the

engagement.

Correct Answer:

identify why the client wants an audit.

Response Feedback:

Refer page: 220 and Figure 7.2

Question 7

0 out of 1 points

Which one of the following items would not normally be included, in whole or in part, in the auditor's permanent file on a client? Answer

Selected Answer:

Analyses of accounts such as long-term debt and shareholders'

equity

Correct Answer: The audit program


Question 8

1 out of 1 points

When considering the desirability of staff continuity on an engagement, an audit partner must always: Answer

Selected Answer: ensure independence is not compromised.

Correct Answer: ensure independence is not compromised.


Question 9

0 out of 1 points

The most likely uses of the financial statements can be determined from: Answer

Selected Answer:

reviewing the terms of the engagement as set out in the engagement

letter.

Correct Answer: previous experience with the auditee and discussions with

management.


Question 10

0 out of 1 points


Selected Answer:

Exchange of equipment between two companies owned by the same

person

Correct Answer:


largest customer

Response Feedback:


Question 1

0 out of 1 points

The official record of the meetings of the board of directors and shareholders is contained in the:

Answer



Response Feedback:

Refer page: 228

Question 2

0 out of 1 points

A working trial balance is:

Answer

Selected Answer:

a list of the opening subsidiary ledger account balances.


Response Feedback:

Refer page: 236

Question 3

1 out of 1 points


Answer

Selected Answer:

To enable proper on-the-job training of employees


Response Feedback:

Refer page: 218

Question 4

1 out of 1 points


Answer

Selected Answer: acceptable audit risk.


Response Feedback:

Refer page: 219

Question 5

0 out of 1 points

Good working papers should have common characteristics. Which one of the following is not one of those characteristics?

Answer

Selected Answer:

Notations directly on the working paper schedules, explaining the work done.

Correct Answer:

Noting the client staff member responsible for the particular area under review.

Response Feedback:

Refer page: 238

Question 6

1 out of 1 points

Policies, procedures and guidance for auditors regarding the acceptance and continuance of client relationships are found in:

Answer

Selected Answer:

Both A & B


Response Feedback:

Refer page: 236

Question 7

0 out of 1 points

It is considered a discreditable act for the auditor to retain the audit working papers after a demand is made for them by the client.

Answer

Selected Answer:

True


Response Feedback:

Refer page: 233

Question 8

0 out of 1 points

The second step in accepting an audit engagement and initial planning is to:

Answer

Selected Answer: obtain background information.

Correct Answer: identify why the client wants an audit.

Response Refer page: 220 and Figure 7.2

Feedback:

Question 9

0 out of 1 points

Which one of the following would you not expect to find in a company's constitution? Rules and procedures for:

Answer

Selected Answer: calling general meetings.

Correct Answer: implementing internal control systems.

Response Feedback:

Refer page: 228

Question 10

0 out of 1 points

Investigation of new clients and re-evaluation of existing ones is an essential part of deciding:

Answer



Response Feedback:

Refer page: 220

Question 10 out of 1 points

Material transactions between the client and the client's related parties must be disclosed in the client's financial statements and in the auditor's report.Answer

Selected Answer: TrueCorrect Answer: False

Response Feedback:Refer page: 227


Which one of the following would ordinarily not be found in the permanent file?Answer

Selected Answer: The history of the clientCorrect Answer: The name of the predecessor auditor



When an auditor decides on a higher acceptable audit risk, one effect is that the auditor wants to be more certain the accounts are not materially misstated.Answer




Investigation of new clients and re-evaluation of existing ones is an essential part of deciding:Answer

Selected Answer: acceptable audit risk.Correct Answer: acceptable audit risk.



Which of the following would not usually be included in the minutes of the board of directors and/or shareholders?Answer

Selected Answer: Declaration of dividendsCorrect Answer: The duties and powers of the corporate officers



When a company changes auditors, Professional Statement F.3 requires communication between the predecessor and successor auditors. The burden of initiating the communication rests with the:Answer

Selected Answer: predecessor.Correct Answer: successor.



When a successor (new) auditor contacts a company's previous auditor, the predecessor auditor is required to respond to the request for information.Answer

Selected Answer: TrueCorrect Answer: True



One hundred percent acceptable audit risk means that the auditor wants complete certainty that the financial statements are not materially misstated.Answer

Selected Answer: FalseCorrect Answer: False



An extensive understanding of the client's business and industry and knowledge about the company's operations are essential because:Answer

Selected Answer: all of the above.Correct Answer: all of the above.



Which one of the following would not fit the description of a related-party transaction?Answer

Selected Answer: Sales of merchandise between a parent company and its subsidiaryCorrect Answer: An unusually large sale of merchandise to the company's best and largest customer

Response Feedback:Refer page: 227. A customer is not considered a "related party" to the company.

Question 1

1 out of 1 points

When a successor (new) auditor contacts a company's previous auditor, the predecessor auditor is required to respond to the request for information. Answer




Question 2

0 out of 1 points

A predecessor (old) auditor who has been contacted by a successor (new) auditor for information about the client must obtain permission from the client before providing any confidential information to the successor auditor. Answer

Selected Answer:

False



Question 3

1 out of 1 points

Which one of the following is not one of the major types of supporting schedule working papers? Answer

Selected Answer: An audit program

Correct Answer: An audit program

Response Feedback: Refer page: 238-9

Question 4

1 out of 1 points

Which one of the following characteristics of the client's management effects the risk of material misstatements in the financial report: Answer

Selected Answer:

all three of the above.

Correct Answer:



Question 5

0 out of 1 points


Selected obtain background information.

Answer:


Response Feedback:


Question 6

1 out of 1 points

Information such as organisation charts, flowcharts and questionnaires related to the auditor's understanding of internal control is typically included in the permanent files of the auditor's working papers. Answer




Question 7

1 out of 1 points





Question 8

1 out of 1 points

Which of the following would not be classified as a related-party transaction? Answer

Selected Answer: An advance of one week's salary to an employee

Correct Answer: An advance of one week's salary to an employee


Question 9

1 out of 1 points

A measure of how willing the auditor is to accept that the financial statements may be materially misstated after the audit is completed and an unqualified opinion has been issued is called: Answer




Question 10

1 out of 1 points

ASA210 requires auditors to: Answer

Selected Answer:

document their understanding of the engagement in working papers.

Correct Answer: document their understanding of the engagement in working papers.


Question 1

1 out of 1 points

The current file of the auditor's working papers generally should include: Answer

Selected Answer:

a copy of the financial statements.

Correct Answer: a copy of the financial statements.


Question 2

1 out of 1 points


Selected Answer: The audit program



Question 3

0 out of 1 points

Which one of the following is not a document or record that should be examined early in the engagement? Answer

Selected Answer: Contracts

Correct Answer: Management letter

Response Feedback:

Refer page: 228. A management letter would normally be a document given in response to an audit query.

Question 4

1 out of 1 points

The audit program is normally contained in the permanent file of the auditor's working papers. Answer




Question 5

1 out of 1 points

Which of the following would not usually be included in the minutes of the board of directors and/or shareholders? Answer

Selected Answer:

The duties and powers of the corporate officers

Correct Answer: The duties and powers of the corporate officers


Question 6

1 out of 1 points

The purpose of requiring communication between the predecessor and successor auditor is: Answer

Selected Answer:


engagement.


engagement.


Question 7

1 out of 1 points





Question 8

1 out of 1 points

It is considered a discreditable act for the auditor to retain the audit working papers after a demand is made for them by the client. Answer




Question 9

1 out of 1 points





Question 10

1 out of 1 points

When an auditor decides there is higher inherent risk for an account, one potential effect is that more audit evidence will be required for that account. Answer




Question 1

1 out of 1 points





Question 2

1 out of 1 points

One hundred percent acceptable audit risk means that the auditor wants complete certainty that the financial statements are not materially misstated. Answer




Question 3

1 out of 1 points





Question 4

1 out of 1 points





Question 5

1 out of 1 points

Notations on working papers are accomplished by the use of: Answer

Selected Answer:

tick marks.

Correct Answer: tick marks.


Question 6

1 out of 1 points

The development of the audit program, is the final stage in: Answer

Selected Answer: audit planning.

Correct Answer: audit planning.


Question 7

1 out of 1 points


Selected Answer:


Correct Answer:



Question 8

1 out of 1 points


Selected Answer: Management letter


Response Feedback:


Question 9

0 out of 1 points


Selected Answer:

Loans to corporate officers at market rates of interest with a regular

repayment schedule

Correct Answer:


largest customer

Response Feedback:


Question 10

1 out of 1 points





Question 1

0 out of 1 points


Selected Answer:



Correct Answer:




Question 2

1 out of 1 points




Response Feedback:

Refer page: 227-228

Question 3

0 out of 1 points





Question 4

0 out of 1 points





Question 5

1 out of 1 points


Selected Answer:



Correct Answer:




Question 6

0 out of 1 points


Selected Answer:




Question 7

1 out of 1 points





Question 8

1 out of 1 points





Question 9

1 out of 1 points


Selected Answer:




Question 10

0 out of 1 points


Selected Answer:

Account analyses



Question 1

1 out of 1 points

When a successor (new) auditor contacts a company's previous auditor, the predecessor auditor is required to respond to the request for information.

Answer




Question 2

0 out of 1 points


Answer




Question 3

0 out of 1 points

As inherent risk decreases, audit expertise should normally increase.

Answer




Question 4

1 out of 1 points

Auditors should plan engagements properly to:

Answer




Question 5

1 out of 1 points

The current file of the auditor's working papers generally should include:

Answer

Selected Answer:




Question 6

1 out of 1 points

Copies of the client's constitution and organisation chart are normally included in the permanent file of the auditor's working papers.

Answer




Question 7

1 out of 1 points

Because company policies are reflected in the financial statements, it is important that auditors:

Answer




Question 8

1 out of 1 points


Answer




Question 9

1 out of 1 points

Which of the following eliminates voluminous details from the auditor's working trial balance by classifying and summarising similar or related items?

Answer

Selected Answer:

Lead schedules



Question 10

0 out of 1 points

The predecessor auditor is required to respond to the request of the successor auditor for information, but the response can be limited to stating that no information will be provided when:

Answer


Correct Answer: there are legal problems between the client and predecessor.


1 Question 1 1 out of 1 points1 1

1 1 Reclassification entries are recorded in the: Answer

12 Selected Answer:3 financial

statements but not in the general ledger.

4 Correct Answer:5 financial


6 Response Feedback:7 Refer page: 237

2 Question 2 1 out of 1 points1

1 1 Copies of the client's constitution and organisation chart are normally included in the permanent file of the auditor's working papers. Answer

12 Selected Answer:3 True4 Correct Answer:5 True6 Response Feedback:7 Refer page: 235


1 1 Material transactions between the client and the client's related parties must be disclosed in the client's financial statements and in the auditor's report. Answer

12 Selected Answer:3 False4 Correct Answer:5 False6 Response Feedback:7 Refer page: 227

Question 4 0 out of 1 points1 1

1 1 The permanent section of the auditor's working papers generally should include: Answer

12 Selected Answer:3 a copy of key

customer confirmations.

4 Correct Answer:5 a copy of the

engagement letter.

6 Response Feedback:7 Refer page: 235

Question 5 0 out of 1 points

1 1

1 1 The audit program is normally contained in the permanent file of the auditor's working papers. Answer

12 Selected Answer:3 True4 Correct Answer:5 False6 Response Feedback:7 Refer page: 235


1 1 When a successor (new) auditor contacts a company's previous auditor, the predecessor auditor is required to respond to the request for information. Answer



1 1 ACE is commercial audit software which can: Answer

12 Selected Answer:3 all of the above4 Correct Answer:5 all of the above6 Response Feedback:7 Refer page: 241


1 1 Permanent files contain all the data: Answer

12 Selected Answer:3 of a historical or continuing nature pertinent to the current audit.4 Correct Answer:5 of a historical or continuing nature pertinent to the current audit.6 Response Feedback:7 Refer page: 235


1 1

1 1 Which one of the following would ordinarily not be found in the permanent file? Answer

12 Selected Answer:3 Related party details4 Correct Answer:5 The name of the predecessor auditor6 Response Feedback:7 Refer page: 235


For prospective clients that have previously been audited by another firm, the new auditor is required to communicate with the previous auditor.Answer




Question 1

1 out of 1 points

A cancelled cheque written by the client, made payable to a local vendor and drawn on the client's bank account is one type of internal document.Answer




Question 2

1 out of 1 points

The type of audit evidence known as documentation involves the auditor's examination of tangible assets with the results of the examination being recorded, or 'documented', in the auditor's work papers.Answer




Question 3

1 out of 1 points

Those procedures specifically outlined in an audit program are primarily designed to:Answer

Selected Answer: All of the above.

Correct Answer: All of the above.


Question 4

1 out of 1 points

Evidence is usually more persuasive for balance sheet accounts when it is obtained:Answer

Selected Answer: as close to the balance sheet date as possible.

Correct Answer: as close to the balance sheet date as possible.


Question 5

1 out of 1 points

Which of the following discoveries through the use of analytical procedures would indicate a relatively high risk of financial failure?Answer

Selected Answer:

A higher than normal ratio of long-term debt to net worth as well as a

lower than average ratio of profits to total assets

Correct Answer:




Question 6

1 out of 1 points

Which of the following forms of evidence is least reliable?Answer

Selected Answer:

Client's file copy of a purchase requisition

Correct Answer: Client's file copy of a purchase requisition

Response Feedback:

Refer page: 181. Reliability depends on the independence of the source.

Question 7

1 out of 1 points

'Evaluations' of financial information made by a study of plausible relationships among financial and non-financial data involving comparisons of recorded amounts to expectations developed by the auditor' is a definition ofAnswer

Selected Answer:

analytical procedures.

Correct Answer: analytical procedures.


Question 8

0 out of 1 points

Which of the following types of evidence is rarely sufficient by itself to provide competent evidence to satisfy any audit objective?Answer

Selected Answer: Observation

Correct Answer: All of the above

Response Feedback: Refer page: 189 and table 6.4 - due to the variability of objectivity.

Question 9

1 out of 1 points

Which one of the following is not a liquidity activity ratio:Answer

Selected Answer: time interest earned ratio.

Correct Answer: time interest earned ratio.


Question 10

1 out of 1 points

Inquiries of clients and reperformance normally have a low cost to perform.Answer

Selected Answer:

True



Answer

Selected Answer:

a listing of the general ledger accounts and their

year-end balances.

Correct Answer:


year-end balances.

Response Feedback:

Refer page: 236

Question 2

1 out of 1 points


Answer

Selected Answer:

all of the

above.

Correct Answer:

all of the

above.

Response Feedback:

Refer page: 218

Question 3

1 out of 1 points

Which one of the following characteristics of the client's management effects the risk of material misstatements in the financial report:

Answer

Selected Answer:


Correct Answer:


Response Feedback:

Refer page: 227

Question 4

1 out of 1 points

Notations on working papers are accomplished by the use of:

Answer

Selected Answer:

tick

marks.

Correct Answer:

tick

marks.

Response Feedback:

Refer page: 240

Question 5

1 out of 1 points

Reclassification entries are recorded in the:

Answer

Selected Answer:

financial statements but not in the

general ledger.

Correct Answer:


general ledger.

Response Feedback:

Refer page: 237

Question 6

1 out of 1 points

Which of the following would not be classified as a related-party transaction?

Answer

Selected Answer:

An advance of one week's salary to an

employee

Correct Answer:


employee

Response Feedback:

Refer page: 227

Question 7

1 out of 1 points

The engagement letter:

Answer

Selected Answer:

can affect legal responsibilities to

the client.

Correct can affect legal responsibilities to

the client.

Answer:

Response Feedback:

Refer page: 227

Question 8

1 out of 1 points


Answer

Selected Answer:

tour the client's

facilities.

Correct Answer:

tour the client's

facilities.

Response Feedback:

Refer page: 226

Question 9

1 out of 1 points


Answer

Selected Answer:

Groupshare software

programs.

Correct Groupshare software

programs.

Answer:

Response Feedback:

Refer page: 241

Question 10

1 out of 1 points

The auditor needs to understand the control environment (management and governance) because:

Answer

Selected Answer:

both A and

B.

Correct Answer:

both A and

B.

Response Feedback:

Refer page: 227-228


Question 1

1 out of 1 points


Answer

Selected Answer:


general ledger.

Correct Answer:


general ledger.

Response Feedback:

Refer page: 237

Question 2

1 out of 1 points


Answer

Selected Answer:

acceptable audit

risk.

Correct Answer:

acceptable audit

risk.

Response Feedback:

Refer page: 220

Question 3

1 out of 1 points


Answer

Selected Answer:

both A and

B.

Correct Answer:

both A and

B.

Response Feedback:

Refer page: 227-228

Question 4

1 out of 1 points

The development of the audit program, is the final stage in:

Answer

Selected Answer:

audit

planning.

Correct Answer:

audit

planning.

Response Feedback:

Refer page: 219

Question 5

1 out of 1 points


Answer

Selected Answer:

Both A &

B

Correct Both A &

Answer: B

Response Feedback:

Refer page: 236

Question 6

1 out of 1 points

The client can be informed that the auditor is not responsible for the discovery of all acts of fraud by the:

Answer

Selected Answer:

engagement

letter.

Correct Answer:

engagement

letter.

Response Feedback:

Refer page: 222

Question 7

0 out of 1 points

Working papers prepared by the client for the auditor are the property of the auditor.

Answer

Selected Answer:

Fals

e

Correct Answer:

Tru

e

Response Feedback:

Refer page: 233

Question 8

1 out of 1 points

A predecessor (old) auditor who has been contacted by a successor (new) auditor for information about the client must obtain permission from the client before providing any confidential information to the successor auditor.

Answer

Selected Answer:

Tru

e

Correct Answer:

Tru

e

Response Feedback:

Refer page: 221

Question 9

1 out of 1 points


Answer

Selected Answer:

Noting the client staff member responsible for the particular

area under review.

Correct Noting the client staff member responsible for the particular

Answer: area under review.

Response Feedback:

Refer page: 238

Question 10

1 out of 1 points

ASA210 requires auditors to:

Answer

Selected Answer:

document their understanding of the engagement in

working papers.

Correct Answer:


working papers.

Response Feedback:

Refer page: 221


1 Question 1

1 out of 1 points


Answer

Selected Answer:

minutes.



2 Question 2

0 out of 1 points


Answer

Selected Answer:

ASA 220



3 Question 3

1 out of 1 points


Answer

Selected Answer:

a listing of the general ledger accounts and their year-end

balances.

Correct Answer: a listing of the general ledger accounts and their year-end

balances.


4 Question 4

1 out of 1 points

Only those adjusting and reclassification entries that significantly affect the fair presentation of financial statements (i.e. material entries) should be documented or summarised in the auditor's working papers.

Answer

Selected Answer:

False



5 Question 5

1 out of 1 points


Answer

Selected Answer:

Groupshare software programs.



6 Question 6

1 out of 1 points

A measure of the auditor's assessment of the likelihood that there are material misstatements in an account before considering the effectiveness of the client's internal control is called:

Answer

Selected Answer:

inherent risk.



7 Question 7

1 out of 1 points

Which one of the following would not fit the description of a related-party transaction?

Answer

Selected Answer:


largest customer

Correct Answer:


largest customer

Response Feedback:


8 Question 8

1 out of 1 points


Answer

Selected Answer:


under review.

Correct Answer:


under review.


9 Question 9

1 out of 1 points


Answer




10 Question 10

1 out of 1 points

The working papers are:

Answer

Selected Answer:



Correct Answer:



Response Feedback: Refer page:

232



An example of a reclassification entry would be an entry:AnswerSelected Answer:to increase the income tax liability account when it was discovered that the tax rate would be higher than originally estimated.Correct Answer:to change material credit balances in accounts receivable accounts to accounts payable accounts.Response Feedback:Refer page: 237Question 21 out of 1 points

The auditor needs to understand the control environment (management and governance) because:AnswerSelected Answer:both A and B.Correct Answer:both A and B.Response Feedback:Refer page: 227-228Question 30 out of 1 points

Auditors should plan engagements properly to:AnswerSelected Answer:[None Given]Correct Answer:all of the above.Response Feedback:Refer page: 218Question 40 out of 1 points

The largest portion of the auditor's working papers is the:AnswerSelected Answer:adjusting and reclassification entries.Correct Answer:supporting schedules.Response Feedback:Refer page: 237Question 51 out of 1 points

The working papers are:AnswerSelected Answer:the primary means of documenting that an adequate audit was conducted in accordance with auditing standards.Correct Answer:the primary means of documenting that an adequate audit was conducted in accordance with auditing standards.Response Feedback:Refer page: 232Question 60 out of 1 points

Most auditors assess inherent risk as high for related parties and related-party transactions because:AnswerSelected Answer:it is required by generally accepted accounting principles.Correct Answer:both

A and B.Response Feedback:Refer page: 227Question 71 out of 1 points

The primary purpose of an engagement letter is to establish a clear understanding of the terms of the engagement between the client and the auditor.AnswerSelected Answer:TrueCorrect Answer:TrueResponse Feedback:Refer page: 221Question 81 out of 1 points

ACL is a software package which assists auditors by performing tests on a client's electronic data.AnswerSelected Answer:TrueCorrect Answer:TrueResponse Feedback:Refer page: 241Question 91 out of 1 points

Reclassification entries are recorded in the:AnswerSelected Answer:financial statements but not in the general ledger.Correct Answer:financial statements but not in the general ledger.Response Feedback:Refer page: 237Question 100 out of 1 points

Which of the following eliminates voluminous details from the auditor's working trial balance by classifying and summarising similar or related items?AnswerSelected Answer:Account analysesCorrect Answer:Lead schedulesResponse Feedback:Refer page: 236

Question 1

1 out of 1 points





Question 2

0 out of 1 points





Question 3

0 out of 1 points





Question 4

0 out of 1 points


Selected Answer:

False



Question 5

1 out of 1 points





Question 6

0 out of 1 points


Selected Answer:


engagement.

Correct Answer:


Response Feedback:


Question 7

0 out of 1 points


Selected Answer:


equity



Question 8

1 out of 1 points





Question 9

0 out of 1 points


Selected Answer:


letter.


management.


Question 10

0 out of 1 points


Selected Answer:


person

Correct Answer:


largest customer

Response Feedback:


Question 1

0 out of 1 points


Answer



Response Feedback:

Refer page: 228

Question 2

0 out of 1 points


Answer

Selected Answer:



Response Feedback:

Refer page: 236

Question 3

1 out of 1 points


Answer

Selected Answer:



Response Feedback:

Refer page: 218

Question 4

1 out of 1 points


Answer



Response Feedback:

Refer page: 219

Question 5

0 out of 1 points


Answer

Selected Answer:


Correct Answer:


Response Feedback:

Refer page: 238

Question 6

1 out of 1 points


Answer

Selected Answer:

Both A & B


Response Feedback:

Refer page: 236

Question 7

0 out of 1 points


Answer

Selected Answer:

True


Response Feedback:

Refer page: 233

Question 8

0 out of 1 points


Answer



Response Feedback:


Question 9

0 out of 1 points


Answer



Response Feedback:

Refer page: 228

Question 10

0 out of 1 points


Answer



Response Feedback:

Refer page: 220









































Question 1

1 out of 1 points





Question 2

0 out of 1 points


Selected Answer:

ASA 220



Question 3

1 out of 1 points





Question 4

1 out of 1 points





Question 5

1 out of 1 points





Question 6

1 out of 1 points





Question 7

1 out of 1 points


Selected Answer:


largest customer

Correct Answer:


largest customer

Response Feedback:


Question 8

1 out of 1 points


Selected Answer:


under review.


under review.


Question 9

1 out of 1 points





Question 10

1 out of 1 points


Selected Answer:



Correct Answer:





One purpose of performing preliminary analytical procedures in the planning phase of an audit is to help the auditor make a preliminary assessment of control risk. Answer Selected Answer: False



Question 1

0 out of 1 points


Answer




Question 2

0 out of 1 points


Answer




Question 3

1 out of 1 points


Answer

Selected Answer:


engagement.


engagement.


Question 4

1 out of 1 points


Answer




Question 5

1 out of 1 points


Answer




Question 6

1 out of 1 points


Answer




Question 7

1 out of 1 points


Answer




Question 8

1 out of 1 points


Answer




Question 9

1 out of 1 points


Answer




Question 10

1 out of 1 points


Answer





Question 1

1 out of 1 points





Question 2

0 out of 1 points





Question 3

0 out of 1 points





Question 4

0 out of 1 points


Selected Answer:

False



Question 5

1 out of 1 points





Question 6

0 out of 1 points


Selected Answer:


engagement.

Correct Answer:


Response Feedback:


Question 7

0 out of 1 points


Selected Answer:


equity



Question 8

1 out of 1 points





Question 9

0 out of 1 points


Selected Answer:


letter.


management.


Question 10

0 out of 1 points


Selected Answer:


person

Correct Answer:


largest customer

Response Feedback:


Question 1

0 out of 1 points


Answer



Response Feedback:

Refer page: 228

Question 2

0 out of 1 points


Answer

Selected Answer:



Response Feedback:

Refer page: 236

Question 3

1 out of 1 points


Answer

Selected Answer:



Response Feedback:

Refer page: 218

Question 4

1 out of 1 points


Answer



Response Feedback:

Refer page: 219

Question 5

0 out of 1 points


Answer

Selected Answer:


Correct Answer:


Response Feedback:

Refer page: 238

Question 6

1 out of 1 points


Answer

Selected Answer:

Both A & B


Response Feedback:

Refer page: 236

Question 7

0 out of 1 points


Answer

Selected Answer:

True


Response Feedback:

Refer page: 233

Question 8

0 out of 1 points


Answer




Feedback:

Question 9

0 out of 1 points


Answer



Response Feedback:

Refer page: 228

Question 10

0 out of 1 points


Answer



Response Feedback:

Refer page: 220









































Question 1

1 out of 1 points





Question 2

0 out of 1 points


Selected ASA 220

Answer:



Question 3

1 out of 1 points





Question 4

1 out of 1 points





Question 5

1 out of 1 points





Question 6

1 out of 1 points





Question 7

1 out of 1 points


Selected Answer:


largest customer

Correct Answer:


largest customer

Response Feedback:


Question 8

1 out of 1 points


Selected Answer:


under review.


under review.


Question 9

1 out of 1 points





Question 10

1 out of 1 points


Selected Answer:



Correct Answer:





Question 1

1 out of 1 points





Question 2

0 out of 1 points


Selected Answer:

adjusting and reclassification entries.



Question 3

0 out of 1 points





Question 4

0 out of 1 points





Question 5

1 out of 1 points





Question 6

0 out of 1 points


Selected Answer:


engagement.

Correct Answer:


Response Feedback:


Question 7

0 out of 1 points


Selected Answer:


equity



Question 8

1 out of 1 points





Question 9

0 out of 1 points


Selected Answer:


letter.


management.


Question 10

0 out of 1 points


Selected Answer:


person

Correct Answer:


largest customer

Response Feedback:


Question 1

0 out of 1 points


Answer



Response Feedback:

Refer page: 228

Question 2

0 out of 1 points


Answer

Selected Answer:



Response Feedback:

Refer page: 236

Question 3

1 out of 1 points


Answer

Selected Answer:



Response Feedback:

Refer page: 218

Question 4

1 out of 1 points


Answer



Response Feedback:

Refer page: 219

Question 5

0 out of 1 points


Answer

Selected Answer:


Correct Answer:


Response Feedback:

Refer page: 238

Question 6

1 out of 1 points


Answer

Selected Answer:

Both A & B


Response Feedback:

Refer page: 236

Question 7

0 out of 1 points


Answer

Selected Answer:

True


Response Feedback:

Refer page: 233

Question 8

0 out of 1 points


Answer



Response Feedback:


Question 9

0 out of 1 points


Answer



Response Feedback:

Refer page: 228

Question 10

0 out of 1 points


Answer



Response Feedback:

Refer page: 220









































Question 1

1 out of 1 points





Question 2

0 out of 1 points





Question 3

1 out of 1 points





Question 4

1 out of 1 points


Selected Answer:


Correct Answer:



Question 5

0 out of 1 points


Selected Answer:

obtain background information.


Response Feedback:


Question 6

1 out of 1 points





Question 7

1 out of 1 points





Question 8

1 out of 1 points





Question 9

1 out of 1 points





Question 10

1 out of 1 points


Selected Answer:




Question 1

1 out of 1 points


Selected Answer:




Question 2

1 out of 1 points





Question 3

0 out of 1 points




Response Feedback:


Question 4

1 out of 1 points





Question 5

1 out of 1 points


Selected Answer:




Question 6

1 out of 1 points


Selected Answer:


engagement.


engagement.


Question 7

1 out of 1 points





Question 8

1 out of 1 points





Question 9

1 out of 1 points





Question 10

1 out of 1 points





Question 1

1 out of 1 points





Question 2

1 out of 1 points





Question 3

1 out of 1 points





Question 4

1 out of 1 points





Question 5

1 out of 1 points


Selected Answer:

tick marks.



Question 6

1 out of 1 points





Question 7

1 out of 1 points


Selected Answer:


Correct Answer:



Question 8

1 out of 1 points




Response Feedback:


Question 9

0 out of 1 points


Selected Answer:


repayment schedule

Correct Answer:


largest customer

Response Feedback:


Question 10

1 out of 1 points





Question 1

0 out of 1 points


Selected Answer:



Correct Answer:




Question 2

1 out of 1 points




Response Feedback:

Refer page: 227-228

Question 3

0 out of 1 points





Question 4

0 out of 1 points


Selected Answer:




Question 5

1 out of 1 points


Selected Answer:



Correct Answer:




Question 6

0 out of 1 points


Selected Answer:




Question 7

1 out of 1 points





Question 8

1 out of 1 points





Question 9

1 out of 1 points


Selected Answer:




Question 10

0 out of 1 points


Selected Answer: Account analyses



Question 1

1 out of 1 points


Answer




Question 2

0 out of 1 points


Answer




Question 3

0 out of 1 points


Answer




Question 4

1 out of 1 points


Answer




Question 5

1 out of 1 points


Answer

Selected Answer:




Question 6

1 out of 1 points


Answer




Question 7

1 out of 1 points


Answer




Question 8

1 out of 1 points


Answer




Question 9

1 out of 1 points


Answer

Selected Answer:

Lead schedules



Question 10

0 out of 1 points


Answer










13 Response Feedback:

14 Refer page: 237












engagement letter.


14 Refer page: 235Question 5 0 out of 1 points

2 2








89 Selected Answer:10 all of the

above11 Correct Answer:12 all of the

above13 Response

Feedback:14 Refer page: 241





2 2








Question 1

1 out of 1 points





Question 2

1 out of 1 points





Question 3

1 out of 1 points





Question 4

1 out of 1 points





Question 5

1 out of 1 points


Selected Answer:



Correct Answer:




Question 6

1 out of 1 points


Selected Answer:



Response Feedback:


Question 7

1 out of 1 points


Selected Answer:




Question 8

0 out of 1 points





Question 9

1 out of 1 points





Question 10

1 out of 1 points


Selected Answer:

True



Answer

Selected Answer:


year-end balances.

Correct Answer:


year-end balances.

Response Feedback:

Refer page: 236

Question 2

1 out of 1 points


Answer

Selected Answer:

all of the

above.

Correct Answer:

all of the

above.

Response Feedback:

Refer page: 218

Question 3

1 out of 1 points


Answer

Selected Answer:


Correct Answer:


Response Feedback:

Refer page: 227

Question 4

1 out of 1 points


Answer

Selected Answer:

tick

marks.

Correct Answer:

tick

marks.

Response Feedback:

Refer page: 240

Question 5

1 out of 1 points


Answer

Selected Answer:


general ledger.

Correct Answer:


general ledger.

Response Feedback:

Refer page: 237

Question 6

1 out of 1 points


Answer

Selected Answer:


employee

Correct Answer:


employee

Response Feedback:

Refer page: 227

Question 7

1 out of 1 points


Answer

Selected Answer:


the client.


the client.

Answer:

Response Feedback:

Refer page: 227

Question 8

1 out of 1 points


Answer

Selected Answer:

tour the client's

facilities.

Correct Answer:

tour the client's

facilities.

Response Feedback:

Refer page: 226

Question 9

1 out of 1 points


Answer

Selected Answer:

Groupshare software

programs.


programs.

Answer:

Response Feedback:

Refer page: 241

Question 10

1 out of 1 points


Answer

Selected Answer:

both A and

B.

Correct Answer:

both A and

B.

Response Feedback:

Refer page: 227-228


Question 1

1 out of 1 points


Answer

Selected Answer:


general ledger.

Correct Answer:


general ledger.

Response Feedback:

Refer page: 237

Question 2

1 out of 1 points


Answer

Selected Answer:

acceptable audit

risk.

Correct Answer:

acceptable audit

risk.

Response Feedback:

Refer page: 220

Question 3

1 out of 1 points


Answer

Selected Answer:

both A and

B.

Correct Answer:

both A and

B.

Response Feedback:

Refer page: 227-228

Question 4

1 out of 1 points


Answer

Selected Answer:

audit

planning.

Correct Answer:

audit

planning.

Response Feedback:

Refer page: 219

Question 5

1 out of 1 points


Answer

Selected Answer:

Both A &

B

Correct Both A &

Answer: B

Response Feedback:

Refer page: 236

Question 6

1 out of 1 points


Answer

Selected Answer:

engagement

letter.

Correct Answer:

engagement

letter.

Response Feedback:

Refer page: 222

Question 7

0 out of 1 points


Answer

Selected Answer:

Fals

e

Correct Answer:

Tru

e

Response Feedback:

Refer page: 233

Question 8

1 out of 1 points


Answer

Selected Answer:

Tru

e

Correct Answer:

Tru

e

Response Feedback:

Refer page: 221

Question 9

1 out of 1 points


Answer

Selected Answer:


area under review.



Response Feedback:

Refer page: 238

Question 10

1 out of 1 points


Answer

Selected Answer:


working papers.

Correct Answer:


working papers.

Response Feedback:

Refer page: 221


Question 1

1 out of 1 points





Question 2

0 out of 1 points


Selected Answer:

ASA 220



Question 3

1 out of 1 points





Question 4

1 out of 1 points





Question 5

1 out of 1 points





Question 6

1 out of 1 points





Question 7

1 out of 1 points


Selected Answer:


largest customer

Correct Answer:


largest customer

Response Feedback:


Question 8

1 out of 1 points


Selected Answer:


under review.


under review.


Question 9

1 out of 1 points





Question 10

1 out of 1 points


Selected Answer:



Correct Answer:





Question 1

0 out of 1 points


Selected Answer:



Correct Answer:




Question 2

1 out of 1 points




Response Feedback:

Refer page: 227-228

Question 3

0 out of 1 points





Question 4

0 out of 1 points





Question 5

1 out of 1 points


Selected Answer:



Correct Answer:




Question 6

0 out of 1 points


Selected Answer:




Question 7

1 out of 1 points





Question 8

1 out of 1 points





Question 9

1 out of 1 points


Selected Answer:




Question 10

0 out of 1 points


Selected Answer:

Account analyses



Question 1

0 out of 1 points


Answer

Selected Answer:

False



Question 2

0 out of 1 points


Answer




Question 3

1 out of 1 points


Answer

Selected Answer:


engagement.


engagement.


Question 4

1 out of 1 points


Answer




Question 5

1 out of 1 points


Answer




Question 6

1 out of 1 points


Answer




Question 7

1 out of 1 points


Answer




Question 8

1 out of 1 points


Answer




Question 9

1 out of 1 points


Answer




Question 10

1 out of 1 points


Answer





Question 1

1 out of 1 points





Question 2

0 out of 1 points


Selected Answer:

ASA 220



Question 3

1 out of 1 points





Question 4

1 out of 1 points





Question 5

1 out of 1 points





Question 6

1 out of 1 points


Answer




Question 7

1 out of 1 points


Selected Answer:


largest customer

Correct Answer:


largest customer

Response Feedback:


Question 8

1 out of 1 points


Selected Answer:


under review.


under review.


Question 9

1 out of 1 points





Question 10

1 out of 1 points


Selected Answer:



Correct Answer:





Question 1

1 out of 1 points





Question 2

0 out of 1 points





Question 3

0 out of 1 points





Question 4

0 out of 1 points


Selected Answer:

False



Question 5

1 out of 1 points





Question 6

0 out of 1 points


Selected Answer:


engagement.

Correct Answer:


Response Feedback:


Question 7

0 out of 1 points


Selected Answer:


equity



Question 8

1 out of 1 points





Question 9

0 out of 1 points


Selected Answer:


letter.


management.


Question 10

0 out of 1 points


Selected Answer:


person

Correct Answer:


largest customer

Response Feedback:


Question 1

0 out of 1 points


Answer



Response Feedback:

Refer page: 228

Question 2

0 out of 1 points


Answer

Selected Answer:



Response Feedback:

Refer page: 236

Question 3

1 out of 1 points


Answer

Selected Answer:



Response Feedback:

Refer page: 218

Question 4

1 out of 1 points


Answer



Response Feedback:

Refer page: 219

Question 5

0 out of 1 points


Answer

Selected Answer:


Correct Answer:


Response Feedback:

Refer page: 238

Question 6

1 out of 1 points


Answer

Selected Answer:

Both A & B


Response Feedback:

Refer page: 236

Question 7

0 out of 1 points


Answer

Selected Answer:

True


Response Feedback:

Refer page: 233

Question 8

0 out of 1 points


Answer



Response Feedback:


Question 9

0 out of 1 points


Answer



Response Feedback:

Refer page: 228

Question 10

0 out of 1 points


Answer



Response Feedback:

Refer page: 220









































Question 1

1 out of 1 points





Question 2

0 out of 1 points


Selected Answer:

False



Question 3

1 out of 1 points





Question 4

1 out of 1 points


Selected Answer:


Correct Answer:



Question 5

0 out of 1 points


Selected Answer:



Response Feedback:


Question 6

1 out of 1 points





Question 7

1 out of 1 points





Question 8

1 out of 1 points





Question 9

1 out of 1 points





Question 10

1 out of 1 points


Selected Answer:




Question 1

1 out of 1 points


Selected Answer:




Question 2

1 out of 1 points





Question 3

0 out of 1 points




Response Feedback:


Question 4

1 out of 1 points





Question 5

1 out of 1 points


Selected Answer:




Question 6

1 out of 1 points


Selected Answer:


engagement.


engagement.


Question 7

1 out of 1 points





Question 8

1 out of 1 points





Question 9

1 out of 1 points





Question 10

1 out of 1 points





Question 1

1 out of 1 points





Question 2

1 out of 1 points





Question 3

1 out of 1 points





Question 4

1 out of 1 points





Question 5

1 out of 1 points


Selected Answer:

tick marks.



Question 6

1 out of 1 points





Question 7

1 out of 1 points


Selected Answer:


Correct Answer:



Question 8

1 out of 1 points




Response Feedback:


Question 9

0 out of 1 points


Selected Answer:


repayment schedule

Correct Answer:


largest customer

Response Feedback:


Question 10

1 out of 1 points





Question 1

0 out of 1 points


Selected Answer:



Correct Answer:




Question 2

1 out of 1 points




Response Feedback:

Refer page: 227-228

Question 3

0 out of 1 points





Question 4

0 out of 1 points





Question 5

1 out of 1 points


Selected Answer:



Correct Answer:




Question 6

0 out of 1 points


Selected Answer:




Question 7

1 out of 1 points





Question 8

1 out of 1 points





Question 9

1 out of 1 points


Selected Answer:




Question 10

0 out of 1 points


Selected Answer:

Account analyses



Question 1

1 out of 1 points


Answer




Question 2

0 out of 1 points


Answer




Question 3

0 out of 1 points


Answer




Question 4

1 out of 1 points


Answer




Question 5

1 out of 1 points


Answer

Selected Answer:




Question 6

1 out of 1 points


Answer




Question 7

1 out of 1 points


Answer




Question 8

1 out of 1 points


Answer




Question 9

1 out of 1 points


Answer

Selected Answer:

Lead schedules



Question 10

0 out of 1 points


Answer











21 Refer page: 237












engagement letter.



3 3










above20 Response






3 3








Question 1

1 out of 1 points





Question 2

1 out of 1 points





Question 3

1 out of 1 points





Question 4

1 out of 1 points





Question 5

1 out of 1 points


Selected Answer:



Correct Answer:




Question 6

1 out of 1 points


Selected Answer:



Response Feedback:


Question 7

1 out of 1 points


Selected Answer:




Question 8

0 out of 1 points





Question 9

1 out of 1 points





Question 10

1 out of 1 points


Selected Answer:

True



Answer

Selected Answer:


year-end balances.

Correct Answer:


year-end balances.

Response Feedback:

Refer page: 236

Question 2

1 out of 1 points


Answer

Selected Answer:

all of the

above.

Correct Answer:

all of the

above.

Response Feedback:

Refer page: 218

Question 3

1 out of 1 points


Answer

Selected Answer:


Correct Answer:


Response Feedback:

Refer page: 227

Question 4

1 out of 1 points


Answer

Selected Answer:

tick

marks.

Correct Answer:

tick

marks.

Response Feedback:

Refer page: 240

Question 5

1 out of 1 points


Answer

Selected Answer:


general ledger.

Correct Answer:


general ledger.

Response Feedback:

Refer page: 237

Question 6

1 out of 1 points


Answer

Selected Answer:


employee

Correct Answer:


employee

Response Feedback:

Refer page: 227

Question 7

1 out of 1 points


Answer

Selected Answer:


the client.


the client.

Answer:

Response Feedback:

Refer page: 227

Question 8

1 out of 1 points


Answer

Selected Answer:

tour the client's

facilities.

Correct Answer:

tour the client's

facilities.

Response Feedback:

Refer page: 226

Question 9

1 out of 1 points


Answer

Selected Answer:

Groupshare software

programs.


programs.

Answer:

Response Feedback:

Refer page: 241

Question 10

1 out of 1 points


Answer

Selected Answer:

both A and

B.

Correct Answer:

both A and

B.

Response Feedback:

Refer page: 227-228


Question 1

1 out of 1 points


Answer

Selected Answer:


general ledger.

Correct Answer:


general ledger.

Response Feedback:

Refer page: 237

Question 2

1 out of 1 points


Answer

Selected Answer:

acceptable audit

risk.

Correct Answer:

acceptable audit

risk.

Response Feedback:

Refer page: 220

Question 3

1 out of 1 points


Answer

Selected Answer:

both A and

B.

Correct Answer:

both A and

B.

Response Feedback:

Refer page: 227-228

Question 4

1 out of 1 points


Answer

Selected Answer:

audit

planning.

Correct Answer:

audit

planning.

Response Feedback:

Refer page: 219

Question 5

1 out of 1 points


Answer

Selected Answer:

Both A &

B

Correct Both A &

Answer: B

Response Feedback:

Refer page: 236

Question 6

1 out of 1 points


Answer

Selected Answer:

engagement

letter.

Correct Answer:

engagement

letter.

Response Feedback:

Refer page: 222

Question 7

0 out of 1 points


Answer

Selected Answer:

Fals

e

Correct Answer:

Tru

e

Response Feedback:

Refer page: 233

Question 8

1 out of 1 points


Answer

Selected Answer:

Tru

e

Correct Answer:

Tru

e

Response Feedback:

Refer page: 221

Question 9

1 out of 1 points


Answer

Selected Answer:


area under review.



Response Feedback:

Refer page: 238

Question 10

1 out of 1 points


Answer

Selected Answer:


working papers.

Correct Answer:


working papers.

Response Feedback:

Refer page: 221


11 Question 1

1 out of 1 points


Answer

Selected Answer:

minutes.



12 Question 2

0 out of 1 points


Answer

Selected Answer:

ASA 220



13 Question 3

1 out of 1 points


Answer

Selected Answer:

a listing of the general ledger accounts and their year-end

balances.

Correct Answer: a listing of the general ledger accounts and their year-end

balances.


14 Question 4

1 out of 1 points

Only those adjusting and reclassification entries that significantly affect the fair presentation of financial statements (i.e. material entries) should be documented or summarised in the auditor's working papers.

Answer

Selected Answer:

False



15 Question 5

1 out of 1 points


Answer

Selected Answer:

Groupshare software programs.



16 Question 6

1 out of 1 points


Answer

Selected Answer:

inherent risk.



17 Question 7

1 out of 1 points

Which one of the following would not fit the description of a related-party transaction?

Answer

Selected Answer:


largest customer

Correct Answer:


largest customer

Response Feedback:


18 Question 8

1 out of 1 points


Answer

Selected Answer:


under review.

Correct Answer:


under review.


19 Question 9

1 out of 1 points


Answer




20 Question 10

1 out of 1 points

The working papers are:

Answer

Selected Answer:



Correct Answer:



Response Feedback: Refer page:

232



An example of a reclassification entry would be an entry:AnswerSelected Answer:to increase the income tax liability account when it was discovered that the tax rate would be higher than originally estimated.Correct Answer:to change material credit balances in accounts receivable accounts to accounts payable accounts.Response Feedback:Refer page: 237Question 21 out of 1 points

The auditor needs to understand the control environment (management and governance) because:AnswerSelected Answer:both A and B.Correct Answer:both A and B.Response Feedback:Refer page: 227-228Question 30 out of 1 points

Auditors should plan engagements properly to:AnswerSelected Answer:[None Given]Correct Answer:all of the above.Response Feedback:Refer page: 218Question 40 out of 1 points

The largest portion of the auditor's working papers is the:AnswerSelected Answer:adjusting and reclassification entries.Correct Answer:supporting schedules.Response Feedback:Refer page: 237Question 51 out of 1 points

The working papers are:AnswerSelected Answer:the primary means of documenting that an adequate audit was conducted in accordance with auditing standards.Correct Answer:the primary means of documenting that an adequate audit was conducted in accordance with auditing standards.Response Feedback:Refer page: 232Question 60 out of 1 points

Most auditors assess inherent risk as high for related parties and related-party transactions because:AnswerSelected Answer:it is required by generally accepted accounting principles.Correct Answer:both

A and B.Response Feedback:Refer page: 227Question 71 out of 1 points

The primary purpose of an engagement letter is to establish a clear understanding of the terms of the engagement between the client and the auditor.AnswerSelected Answer:TrueCorrect Answer:TrueResponse Feedback:Refer page: 221Question 81 out of 1 points

ACL is a software package which assists auditors by performing tests on a client's electronic data.AnswerSelected Answer:TrueCorrect Answer:TrueResponse Feedback:Refer page: 241Question 91 out of 1 points

Reclassification entries are recorded in the:AnswerSelected Answer:financial statements but not in the general ledger.Correct Answer:financial statements but not in the general ledger.Response Feedback:Refer page: 237Question 100 out of 1 points

Which of the following eliminates voluminous details from the auditor's working trial balance by classifying and summarising similar or related items?AnswerSelected Answer:Account analysesCorrect Answer:Lead schedulesResponse Feedback:Refer page: 236

Question 1

1 out of 1 points





Question 2

0 out of 1 points





Question 3

0 out of 1 points





Question 4

0 out of 1 points


Selected Answer:

False



Question 5

1 out of 1 points





Question 6

0 out of 1 points


Selected Answer:


engagement.

Correct Answer:


Response Feedback:


Question 7

0 out of 1 points


Selected Answer:


equity



Question 8

1 out of 1 points





Question 9

0 out of 1 points


Selected Answer:


letter.


management.


Question 10

0 out of 1 points


Selected Answer:


person

Correct Answer:


largest customer

Response Feedback:


Question 1

0 out of 1 points


Answer



Response Feedback:

Refer page: 228

Question 2

0 out of 1 points


Answer

Selected Answer:



Response Feedback:

Refer page: 236

Question 3

1 out of 1 points


Answer

Selected Answer:



Response Feedback:

Refer page: 218

Question 4

1 out of 1 points


Answer



Response Feedback:

Refer page: 219

Question 5

0 out of 1 points


Answer

Selected Answer:


Correct Answer:


Response Feedback:

Refer page: 238

Question 6

1 out of 1 points


Answer

Selected Answer:

Both A & B


Response Feedback:

Refer page: 236

Question 7

0 out of 1 points


Answer

Selected Answer:

True


Response Feedback:

Refer page: 233

Question 8

0 out of 1 points


Answer



Response Feedback:


Question 9

0 out of 1 points


Answer



Response Feedback:

Refer page: 228

Question 10

0 out of 1 points


Answer



Response Feedback:

Refer page: 220









































Question 1

1 out of 1 points





Question 2

0 out of 1 points


Selected Answer:

ASA 220



Question 3

1 out of 1 points





Question 4

1 out of 1 points





Question 5

1 out of 1 points





Question 6

1 out of 1 points





Question 7

1 out of 1 points


Selected Answer:


largest customer

Correct Answer:


largest customer

Response Feedback:


Question 8

1 out of 1 points


Selected Answer:


under review.


under review.


Question 9

1 out of 1 points





Question 10

1 out of 1 points


Selected Answer:



Correct Answer:





One purpose of performing preliminary analytical procedures in the planning phase of an audit is to help the auditor make a preliminary assessment of control risk. Answer Selected Answer: False



Question 1

0 out of 1 points


Answer




Question 2

0 out of 1 points


Answer




Question 3

1 out of 1 points


Answer

Selected Answer:


engagement.


engagement.


Question 4

1 out of 1 points


Answer




Question 5

1 out of 1 points


Answer




Question 6

1 out of 1 points


Answer




Question 7

1 out of 1 points


Answer




Question 8

1 out of 1 points


Answer




Question 9

1 out of 1 points


Answer




Question 10

1 out of 1 points


Answer





Question 1

1 out of 1 points





Question 2

0 out of 1 points





Question 3

0 out of 1 points





Question 4

0 out of 1 points


Selected Answer:

False



Question 5

1 out of 1 points





Question 6

0 out of 1 points


Selected Answer:


engagement.

Correct Answer:


Response Feedback:


Question 7

0 out of 1 points


Selected Answer:


equity



Question 8

1 out of 1 points





Question 9

0 out of 1 points


Selected Answer:


letter.


management.


Question 10

0 out of 1 points


Selected Answer:


person

Correct Answer:


largest customer

Response Feedback:


Question 1

0 out of 1 points


Answer



Response Feedback:

Refer page: 228

Question 2

0 out of 1 points


Answer

Selected Answer:



Response Feedback:

Refer page: 236

Question 3

1 out of 1 points


Answer

Selected Answer:



Response Feedback:

Refer page: 218

Question 4

1 out of 1 points


Answer



Response Feedback:

Refer page: 219

Question 5

0 out of 1 points


Answer

Selected Answer:


Correct Answer:


Response Feedback:

Refer page: 238

Question 6

1 out of 1 points


Answer

Selected Answer:

Both A & B


Response Feedback:

Refer page: 236

Question 7

0 out of 1 points


Answer

Selected Answer:

True


Response Feedback:

Refer page: 233

Question 8

0 out of 1 points


Answer




Feedback:

Question 9

0 out of 1 points


Answer



Response Feedback:

Refer page: 228

Question 10

0 out of 1 points


Answer



Response Feedback:

Refer page: 220









































Question 1

1 out of 1 points





Question 2

0 out of 1 points


Selected ASA 220

Answer:



Question 3

1 out of 1 points





Question 4

1 out of 1 points





Question 5

1 out of 1 points





Question 6

1 out of 1 points





Question 7

1 out of 1 points


Selected Answer:


largest customer

Correct Answer:


largest customer

Response Feedback:


Question 8

1 out of 1 points


Selected Answer:


under review.


under review.


Question 9

1 out of 1 points





Question 10

1 out of 1 points


Selected Answer:



Correct Answer:





Question 1

1 out of 1 points





Question 2

0 out of 1 points


Selected Answer:




Question 3

0 out of 1 points





Question 4

0 out of 1 points





Question 5

1 out of 1 points





Question 6

0 out of 1 points


Selected Answer:


engagement.

Correct Answer:


Response Feedback:


Question 7

0 out of 1 points


Selected Answer:


equity



Question 8

1 out of 1 points





Question 9

0 out of 1 points


Selected Answer:


letter.


management.


Question 10

0 out of 1 points


Selected Answer:


person

Correct Answer:


largest customer

Response Feedback:


Question 1

0 out of 1 points


Answer



Response Feedback:

Refer page: 228

Question 2

0 out of 1 points


Answer

Selected Answer:



Response Feedback:

Refer page: 236

Question 3

1 out of 1 points


Answer

Selected Answer:



Response Feedback:

Refer page: 218

Question 4

1 out of 1 points


Answer



Response Feedback:

Refer page: 219

Question 5

0 out of 1 points


Answer

Selected Answer:


Correct Answer:


Response Feedback:

Refer page: 238

Question 6

1 out of 1 points


Answer

Selected Answer:

Both A & B


Response Feedback:

Refer page: 236

Question 7

0 out of 1 points


Answer

Selected Answer:

True


Response Feedback:

Refer page: 233

Question 8

0 out of 1 points


Answer



Response Feedback:


Question 9

0 out of 1 points


Answer



Response Feedback:

Refer page: 228

Question 10

0 out of 1 points


Answer



Response Feedback:

Refer page: 220









































Question 1

1 out of 1 points





Question 2

0 out of 1 points





Question 3

1 out of 1 points





Question 4

1 out of 1 points


Selected Answer:


Correct Answer:



Question 5

0 out of 1 points


Selected Answer:



Response Feedback:


Question 6

1 out of 1 points





Question 7

1 out of 1 points





Question 8

1 out of 1 points





Question 9

1 out of 1 points





Question 10

1 out of 1 points


Selected Answer:




Question 1

1 out of 1 points


Selected Answer:




Question 2

1 out of 1 points





Question 3

0 out of 1 points




Response Feedback:


Question 4

1 out of 1 points





Question 5

1 out of 1 points


Selected Answer:




Question 6

1 out of 1 points


Selected Answer:


engagement.


engagement.


Question 7

1 out of 1 points





Question 8

1 out of 1 points





Question 9

1 out of 1 points





Question 10

1 out of 1 points





Question 1

1 out of 1 points





Question 2

1 out of 1 points





Question 3

1 out of 1 points





Question 4

1 out of 1 points





Question 5

1 out of 1 points


Selected Answer:

tick marks.



Question 6

1 out of 1 points





Question 7

1 out of 1 points


Selected Answer:


Correct Answer:



Question 8

1 out of 1 points




Response Feedback:


Question 9

0 out of 1 points


Selected Answer:


repayment schedule

Correct Answer:


largest customer

Response Feedback:


Question 10

1 out of 1 points





Question 1

0 out of 1 points


Selected Answer:



Correct Answer:




Question 2

1 out of 1 points




Response Feedback:

Refer page: 227-228

Question 3

0 out of 1 points





Question 4

0 out of 1 points


Selected Answer:




Question 5

1 out of 1 points


Selected Answer:



Correct Answer:




Question 6

0 out of 1 points


Selected Answer:




Question 7

1 out of 1 points





Question 8

1 out of 1 points





Question 9

1 out of 1 points


Selected Answer:




Question 10

0 out of 1 points


Selected Answer: Account analyses



Question 1

1 out of 1 points


Answer




Question 2

0 out of 1 points


Answer




Question 3

0 out of 1 points


Answer




Question 4

1 out of 1 points


Answer




Question 5

1 out of 1 points


Answer

Selected Answer:




Question 6

1 out of 1 points


Answer




Question 7

1 out of 1 points


Answer




Question 8

1 out of 1 points


Answer




Question 9

1 out of 1 points


Answer

Selected Answer:

Lead schedules



Question 10

0 out of 1 points


Answer











28 Refer page: 237












engagement letter.



4 4










above27 Response






4 4








Question 1

1 out of 1 points





Question 2

1 out of 1 points





Question 3

1 out of 1 points





Question 4

1 out of 1 points





Question 5

1 out of 1 points


Selected Answer:



Correct Answer:




Question 6

1 out of 1 points


Selected Answer:



Response Feedback:


Question 7

1 out of 1 points


Selected Answer:




Question 8

0 out of 1 points





Question 9

1 out of 1 points





Question 10

1 out of 1 points


Selected Answer:

True



Answer

Selected Answer:


year-end balances.

Correct Answer:


year-end balances.

Response Feedback:

Refer page: 236

Question 2

1 out of 1 points


Answer

Selected Answer:

all of the

above.

Correct Answer:

all of the

above.

Response Feedback:

Refer page: 218

Question 3

1 out of 1 points


Answer

Selected Answer:


Correct Answer:


Response Feedback:

Refer page: 227

Question 4

1 out of 1 points


Answer

Selected Answer:

tick

marks.

Correct Answer:

tick

marks.

Response Feedback:

Refer page: 240

Question 5

1 out of 1 points


Answer

Selected Answer:


general ledger.

Correct Answer:


general ledger.

Response Feedback:

Refer page: 237

Question 6

1 out of 1 points


Answer

Selected Answer:


employee

Correct Answer:


employee

Response Feedback:

Refer page: 227

Question 7

1 out of 1 points


Answer

Selected Answer:


the client.


the client.

Answer:

Response Feedback:

Refer page: 227

Question 8

1 out of 1 points


Answer

Selected Answer:

tour the client's

facilities.

Correct Answer:

tour the client's

facilities.

Response Feedback:

Refer page: 226

Question 9

1 out of 1 points


Answer

Selected Answer:

Groupshare software

programs.


programs.

Answer:

Response Feedback:

Refer page: 241

Question 10

1 out of 1 points


Answer

Selected Answer:

both A and

B.

Correct Answer:

both A and

B.

Response Feedback:

Refer page: 227-228


Question 1

1 out of 1 points


Answer

Selected Answer:


general ledger.

Correct Answer:


general ledger.

Response Feedback:

Refer page: 237

Question 2

1 out of 1 points


Answer

Selected Answer:

acceptable audit

risk.

Correct Answer:

acceptable audit

risk.

Response Feedback:

Refer page: 220

Question 3

1 out of 1 points


Answer

Selected Answer:

both A and

B.

Correct Answer:

both A and

B.

Response Feedback:

Refer page: 227-228

Question 4

1 out of 1 points


Answer

Selected Answer:

audit

planning.

Correct Answer:

audit

planning.

Response Feedback:

Refer page: 219

Question 5

1 out of 1 points


Answer

Selected Answer:

Both A &

B

Correct Both A &

Answer: B

Response Feedback:

Refer page: 236

Question 6

1 out of 1 points


Answer

Selected Answer:

engagement

letter.

Correct Answer:

engagement

letter.

Response Feedback:

Refer page: 222

Question 7

0 out of 1 points


Answer

Selected Answer:

Fals

e

Correct Answer:

Tru

e

Response Feedback:

Refer page: 233

Question 8

1 out of 1 points


Answer

Selected Answer:

Tru

e

Correct Answer:

Tru

e

Response Feedback:

Refer page: 221

Question 9

1 out of 1 points


Answer

Selected Answer:


area under review.



Response Feedback:

Refer page: 238

Question 10

1 out of 1 points


Answer

Selected Answer:


working papers.

Correct Answer:


working papers.

Response Feedback:

Refer page: 221


Question 1

1 out of 1 points





Question 2

0 out of 1 points


Selected Answer:

ASA 220



Question 3

1 out of 1 points





Question 4

1 out of 1 points





Question 5

1 out of 1 points





Question 6

1 out of 1 points





Question 7

1 out of 1 points


Selected Answer:


largest customer

Correct Answer:


largest customer

Response Feedback:


Question 8

1 out of 1 points


Selected Answer:


under review.


under review.


Question 9

1 out of 1 points





Question 10

1 out of 1 points


Selected Answer:



Correct Answer:





Question 1

0 out of 1 points


Selected Answer:



Correct Answer:




Question 2

1 out of 1 points




Response Feedback:

Refer page: 227-228

Question 3

0 out of 1 points





Question 4

0 out of 1 points





Question 5

1 out of 1 points


Selected Answer:



Correct Answer:




Question 6

0 out of 1 points


Selected Answer:




Question 7

1 out of 1 points





Question 8

1 out of 1 points





Question 9

1 out of 1 points


Selected Answer:




Question 10

0 out of 1 points


Selected Answer:

Account analyses



Question 8

1 out of 1 points

The purpose of an engagement letter is to:

Answer

Selected Answer:

record the terms of the engagement in writing in order to

minimise misunderstandings.

Correct Answer:

record the terms of the engagement in writing in order to

minimise misunderstandings.

Response Feedback:

Refer page: 221

Question 9

1 out of 1 points

Which one of the following is not an inherent risk that is common to all clients in certain industries?

Answer

Selected Answer:

Brand loyalty in the consemtics

industry

Correct Answer:

Brand loyalty in the consemtics

industry

Response Feedback:

Refer page: 226

Question 1

1 out of 1 points

Which one of the following is a basic tool used by the auditor to control the audit work and review the audit progress?

Answer

Selected Answer:

Audit

program

Correct Answer:

Audit

program

Response Feedback:

Refer page: 236

Documents

ma quiz 7