DeVry ACCT 444 Week 1-5 Complete Quizzes

6. (TCO 7) When inherent risk is high, there will need to be (Points : 3)
more evidence accumulated.
more experienced staff assigned to the work.
either a or b, but not both.
both a and b.
Chapter 8
6. (TCO 7) A measure of the auditor’s assessment of the likelihood that there are material
misstatements in an account before considering the effectiveness of the client’s internal control is
(Points : 3)
acceptable audit risk.
control risk.
inherent risk.
statistical risk.
Chapter 8
7. (TCO 7) What is the responsibility of a successor auditor with respect to communicating with
the predecessor auditor in connection with a prospective new audit client? (Points : 3)
The successor auditor has no responsibility to contact the predecessor auditor.
The successor auditor should obtain permission from the prospective client to contact the predecessor
auditor.
The successor auditor should contact the predecessor regardless of whether the prospective client
authorizes contact.
The successor auditor need not contact the predecessor if the successor is aware of all available relevant
facts.
Chapter 8
7. (TCO 7) A successor auditor may perform which of the following for a new audit client?
(Points : 3)
Speak to local attorneys, banks, and other businesses regarding the company’s reputation
Speak to the predecessor auditor about disagreements they had with management