DeVry ACCT 444 Week 1-5 Complete Quizzes

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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
Interview client personnel to better understand the business and associated risks All of the above Chapter 8 7. (TCO 7) Which of the following is not correct regarding the communications between successor and predecessor auditors? (Points : 3) The burden of initiating the communication rests with the predecessor auditor. The burden of initiating the communication rests with the successor auditor. The predecessor auditor must receive their former client’s permission prior to divulging information to the successor auditor. The predecessor auditor may choose to provide a limited response to a successor auditor. Chapter 8 8. (TCO 8) The FASB definition of materiality emphasizes what class of financial statement users? (Points : 3) Regulators Informed investors Reasonable persons Potential investors Chapter 9 8. (TCO 8) Auditors are responsible for determining whether financial statements are materially misstated, so upon discovering a material misstatement, they must bring it to the attention of (Points : 3) regulators. the audit firm’s managing partner. no one in particular. the client’s management.
Page 1 and 2: DeVry ACCT 444 Week 1-5 Complete Qu
Page 3 and 4: 7. (TCO 3) Independence in auditing
Page 5 and 6: Question 8. 8. (TCO 3) Several mont
Page 7 and 8: the amount of the damages suffered
Page 9 and 10: Chapter 6 6. (TCO 3) Which of the f
Page 11 and 12: 10. (TCO 3) Which of the following
Page 13 and 14: 3. (TCO 6) The Auditing Standards B
Page 15: type of nonfinancial data. presence
Page 19 and 20: the error range. tolerable material
Page 21 and 22: 203 404 408 2. (TCO 5) Sarbanes-Oxl
Page 23 and 24: 4. (TCO 5) Even with the most effec
Page 25 and 26: Data control All of the above 7. (T
Page 27 and 28: 9. (TCO 10) Auditors should evaluat
Page 29 and 30: helpful procedures not possessing t
Page 31 and 32: the order is received and credit is

DeVry ACCT 444 Week 1-5 Complete Quizzes

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