Question 6. Question : (TCO 9) For most audits, inherent risk for accounts receivable is moderate or low except for which balance-related audit objectives? Timing and realizable value Completeness and existence Existence and accuracy Realizable value and cutoff Question 7. Question : (TCO 9) An auditor should perform alternative procedures to substantiate the existence of accounts receivable when no reply to a positive confirmation request is received. no reply to a negative confirmation request is received. collectibility of receivables is in doubt. pledging of the receivables is probable. Question 8. Question : (TCO 9) When auditors sample for tests of details of balances, the objective is to determine whether the account balance being audited is fairly stated. whether the transactions being audited are free of misstatements. whether the controls being tested are operating effectively. whether the transactions and account balances being audited are fairly stated. Question 9. Question : (TCO 9) Sampling risk maybe controlled by reducing down the sample size. Using only random sampling. Using the sample technique most appropriate for the population. using audit software. Question 10. Question : (TCO 9) The acceptable risk of incorrect acceptance is most related to audit efficiency. audit results. audit effectiveness. None of the above ACCT444DeVry Week 7 Quiz Latest 1. Question : (TCO 2) When a misstatement in the financial statements exists, but is unlikely to affect the decisions of a reasonable user, it would be appropriate to issue an unqualified opinion. a qualified opinion. an adverse opinion. a disclaimer of opinion.
Question 2. Question : (TCO 2) When a client has not applied GAAP consistently from the prior year to the current year, the auditor does not concur with the appropriateness of the change, and the change in GAAP has a material effect on the financial statements, the auditor should issue a(n) disclaimer. adverse opinion. unqualified opinion. qualified opinion. Question 3. Question : (TCO 2) When qualifying an opinion because of an insufficiency of audit evidence, an auditor should refer to the situation in the: Auditor’s Responsibility Paragraph Notes to the Financial Statements Yes Yes Auditor’s Responsibility Paragraph Notes to the Financial Statements Yes No Auditor’s Responsibility Paragraph Notes to the Financial Statements No Yes Auditor’s Responsibility Paragraph Notes to the Financial Statements No No Question 4. Question : (TCO 2) Jules, CPA, is reporting on comparative financial statements, but Shah, CPA conducted the previous year's audit. Which of the following is not true in this situation? Dual dating may be used to indicate the appropriate dates for each audit. If Shah's report is not presented, an other-matter paragraph should be included to describe this situation. If Shah's report was qualified due to a scope limitation, Jules may still issue an unmodified opinion on the current year's financial statements. If Shah's report will be presented, management will need to provide a representation letter to Shah. Question 5. Question : (TCO 11) Which of the following is not a purpose of the client letter of representation? To impress upon the audit firm its responsibility for the audit To impress upon management its responsibility for the financial statement assertions To remind management of potential misstatements or omissions in the financial statements To document the responses from management to inquiries about various aspects of the audit