DeVry ACCT 444 Week 1-5 Complete Quizzes

10. (TCO 3) Which of the following characteristics is most likely to heighten an auditor’s concern
about the risk of material misstatements, due to fraud in 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
ACCT 444 Week 3 Quiz
Week 3 : Audit Evidence, Planning, Risk, & Materiality – Quiz
1. (TCO 6) Physical examination is the inspection or count by the auditor of items such as
(Points : 3)
cash or inventory only.
cash, inventory, canceled checks, and sales documents.
cash, inventory, canceled checks, and tangible fixed assets.
cash, inventory, securities, notes receivable, and tangible fixed assets.
Chapter 7
1. (TCO 6) The distinction between physical examination of assets and examination of
documents is dependent on the item being examined. If the object being examined has no inherent
value, the evidence is called (Points : 3)
documentation.
physical examination.
confirmation.
none of the above.
Chapter 7
1. (TCO 6) Which of the following statements regarding documentation is not correct? (Points :
3)
Documentation includes examining client records, such as general ledgers and supporting journals.