DEVRY ACCT 555 Entire Course
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<strong>ACCT</strong> <strong>555</strong> Midterm<br />
1. (TCO F) Which of the following procedures should an auditor generally perform<br />
regarding subsequent events?<br />
2. (TCO A) An auditor reads the letter of transmittal accompanying a county’s<br />
comprehensive annual financial report and identifies a material inconsistency with<br />
the financial statements. The auditor determines that the financial statements do not<br />
require revision. Which of the following actions should the auditor take?<br />
3. (TCO F) An auditor’s independence is considered impaired if the auditor has<br />
4. (TCO B) When an independent CPA is associated with the financial statements of<br />
a publicly held entity but has not audited or reviewed such statements, the<br />
appropriate form of report to be issued must include a(an):<br />
5. (TCO F) Which is not a characteristic of the reliability of evidence?<br />
6. (TCO C) According to PCAOB standards, the nature and extent of required<br />
planning activities for an issuer audit are influenced by all of the following factors,<br />
except for:<br />
7. (TCO F) Analytical procedures must be used during which phase(s) of the audit?<br />
Test of controls OR planning OR completion<br />
8. (TCO F) In a financial statement audit, inherent risk is evaluated to help an<br />
auditor assess which of the following?<br />
9. (TCO F) The primary purpose of performing analytical procedures in the<br />
planning phase of an audit is to<br />
10. (TCO G) The most widely used profitability ratio is<br />
11. (TCO G) Which ratio is best used to assess a company’s ability to meet its longterm<br />
debt obligations?<br />
12. (TCO A) Match the following definitions to the appropriate terms.<br />
13. (TCO B) The following is a portion of a qualified audit report issued for a private<br />
company.<br />
To the shareholders of Tamarak Corporation,