ACCT 444 Week 2 Quiz

Question 9. 9. (TCO 3) Which of the following is a factor that relates to attitudes or rationalization to commit fraudulent financial rep
Significant accounting estimates involving subjective judgments
Excessive pressure for management to meet debt repayment requirements
Management’s practice of making overly aggressive forecasts
High turnover of accounting, internal audit and information technology staff
Chapter 11
Question 10. 10. (TCO 3) Auditor responses to fraud risks include which of the following? (Points : 3)
Change the overall conduct of the audit to respond to identified fraud risks.
Design and perform audit procedures to address identified risks.
Perform procedures to address the risk of management override of controls.
All of the above.
Chapter 11
10. (TCO 3) Which of the following characteristics is most likely to heighten an auditor’s concern about the risk of material m
an entity’s financial statements? (Points : 3)
Employees who handle cash receipts are not bonded.
The entity’s industry is experiencing declining customer demand.
Internal auditors have direct access to the board of directors and the entity’s management.
The board of directors is active in overseeing the entity’s financial reporting policies.
Chapter 11