DeVry ACCT 444 Week 1-5 Complete Quizzes

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4. (TCO 6) Which of the following statements about confirmation is true? (Points : 3) Confirmations are expensive and so are often not used. Confirmations may inconvenience those asked to supply them, but they are widely used. Confirmations are sometimes not reliable and so auditors use them only as necessary. None of the above statements are true. Chapter 7 4. (TCO 6) Three common types of confirmations used by auditors are (1) negative confirmations where only a response is requested if the debtor disagrees with the amount, (2) positive confirmations with a request for information where the debtor is requested to respond and to include their believed balance, and (3) positive confirmations with the information included where the debtor is requested to respond and to confirm the balance we give them. If they were placed in the order of their competence, from highest to lowest, the sequence would be (Points : 3) 3, 1, 2. 1, 2, 3. 3, 2, 1. 2, 3, 1. Chapter 7 4. (TCO 6) Traditionally, confirmations are used to verify (Points : 3) individual transactions between organizations, such as sales transactions. bank balances and accounts receivables. fixed asset additions. All of the above Chapter 7 5. (TCO 7) The major concern when using nonfinancial data in analytical procedures is the (Points : 3) accuracy of the nonfinancial data. source of the nonfinancial data.
type of nonfinancial data. presence of multiple sources of nonfinancial data. Chapter 8 5. (TCO 7) Analytical procedures used in planning an audit should focus on identifying (Points : 3) material weaknesses of internal control. the predictability of financial data from individual transactions. the various assertions that are embodied in the financial statements. areas that may represent specific risks relevant to the audit. Chapter 8 5. (TCO 7) Which of the following is correct with respect to the use of analytical procedures? (Points : 3) Analytical procedures may be used in evaluating balances in the testing phase as long as the auditor also uses them in assessing the going concern assumption. Analytical procedures must be used throughout the audit. Analytical procedures used in the testing phase of the audit are primarily used to direct an auditor’s attention so that the auditor’s understanding of the business is improved. None of the above Chapter 8 6. (TCO 7) 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 the (Points : 3) inherent risk. acceptable audit risk. statistical risk. financial risk. Chapter 8
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DeVry ACCT 444 Week 1-5 Complete Quizzes

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