DEVRY ACCT 555 Entire Course

Which of the following best describes the reason why an independent auditor
reports on financial statements?
Because of the risk of material misstatement, an audit should be planned and
performed with an attitude of
The major reason an independent auditor gathers audit evidence is to
6-20 (Objective 6-3) The following questions deal with errors and fraud. Choose the
best response.
An independent auditor has the responsibility to design the audit to provide
reasonable assurance of detecting errors and fraud that might have a material effect
on the financial statements. Which of the following, if material, is a fraud as defined
in auditing standards?
What assurance does the auditor provide that errors, fraud, and direct-effect illegal
acts that are material to the financial statements will be detected?
6-27 (Objectives 6-6, 6-7) The following are specific transaction-related audit
objectives applied to the audit of cash disbursement transactions (a through f),
management assertions about classes of transactions (1 through 5), and general
transaction-related audit objectives (6 through 11).
Specific Transaction-Related Audit Objective
Recorded cash disbursement transactions are for the amount of goods or services
received and are correctly recorded.
7-25 (Objectives 7-3, 7-4) The following questions concern persuasiveness of
evidence. Choose the best response.
Which of the following types of documentary evidence should the auditor consider to
be the most reliable?
Which of the following statements concerning audit evidence is true?
Audit evidence can come in different forms with different degrees of persuasiveness.
Which of the following is the least persuasive type of evidence?
Which of the following presumptions is correct about the reliability of audit
evidence?