Auditingtestbankchapter8剖析.docx
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Auditingtestbankchapter8剖析
AuditingandAssuranceServices,15e(Arens)
Chapter8AuditPlanningandAnalyticalProcedures
LearningObjective8-1
1)Ameasureofhowwillingtheauditoristoacceptthatthefinancialstatementsmaybemateriallymisstatedaftertheauditiscompletedandanunqualifiedopinionhasbeenissuedisthe:
A)inherentrisk.
B)acceptableauditrisk.
C)statisticalrisk.
D)financialrisk.
Answer:
B
Terms:
Measureofhowwillingauditoristoacceptthatthefinancialstatementsmaybemateriallymisstatedafterauditiscompleted
Diff:
Easy
Objective:
LO8-1
AACSB:
Reflectivethinkingskills
2)Ameasureoftheauditor'sassessmentofthelikelihoodthattherearematerialmisstatementsinanaccountbeforeconsideringtheeffectivenessoftheclient'sinternalcontroliscalled:
A)controlrisk.
B)acceptableauditrisk.
C)statisticalrisk.
D)inherentrisk.
Answer:
D
Terms:
Ameasureofauditor'sassessmentoflikelihoodthattherearematerialmisstatementsinanaccountbeforeconsideringinternalcontrol
Diff:
Easy
Objective:
LO8-1
AACSB:
Reflectivethinkingskills
3)Wheninherentriskishigh,therewillneedtobe:
A)
Alowerassessmentofauditrisk
Moreevidenceaccumulatedbytheauditor
Yes
Yes
B)
Alowerassessmentofauditrisk
Moreevidenceaccumulatedbytheauditor
No
No
C)
Alowerassessmentofauditrisk
Moreevidenceaccumulatedbytheauditor
Yes
No
D)
Alowerassessmentofauditrisk
Moreevidenceaccumulatedbytheauditor
No
Yes
Answer:
D
Terms:
Inherentriskishigh
Diff:
Moderate
Objective:
LO8-1
AACSB:
Reflectivethinkingskills
4)Inwhatordershouldthefollowingstepsoccur?
A.Assessclientbusinessrisk
B.Understandtheclient'sbusinessandindustry
C.Performpreliminaryanalyticalprocedures
D.Assessacceptableauditrisk
A)D,B,C,A
B)B,A,C,D
C)B,D,A,C
D)D,C,B,A
Answer:
B
Terms:
Stepsinplanninganaudit
Diff:
Moderate
Objective:
LO8-1
AACSB:
Reflectivethinkingskills
5)Theauditorusesknowledgegainedfromtheunderstandingoftheclient'sbusinessandindustrytoassess:
A)clientbusinessrisk.
B)controlrisk.
C)inherentrisk.
D)auditrisk.
Answer:
A
Terms:
Firststandardoffieldwork;Properplanning
Diff:
Challenging
Objective:
LO8-1
AACSB:
Analyticskills
6)Therearethreemainreasonswhyanauditorshouldproperlyplanauditengagements.Discusseachofthesereasons.
Answer:
Threereasonswhyanauditorshouldproperlyplanauditengagementsare:
•Toenabletheauditortoobtainsufficientcompetentevidenceforthecircumstances.Thisisessentialforminimizinglegalliabilityandmaintainingagoodprofessionreputation.
•Tohelpkeepauditcostsreasonable.Giventhecompetitiveauditingenvironment,keepingcostsreasonablehelpsthefirmobtainandretainclients.
•Toavoidmisunderstandingswiththeclient.Thisisimportantforgoodclientrelations.
Terms:
Reasonsauditorshouldproperlyplanauditengagement
Diff:
Moderate
Objective:
LO8-1
AACSB:
Reflectivethinkingskills
7)Whenanauditordecidesthereishigherinherentriskforanaccount,onepotentialeffectisthatmoreauditevidencewillberequiredforthataccount.
A)True
B)False
Answer:
A
Terms:
Inherentrisk
Diff:
Easy
Objective:
LO8-1
AACSB:
Reflectivethinkingskills
8)Asacceptableauditriskisdecreased,thelikelycostofconductinganauditincreases.
A)True
B)False
Answer:
A
Terms:
Acceptableauditrisk
Diff:
Easy
Objective:
LO8-1
AACSB:
Reflectivethinkingskills
9)ObtainingsufficientappropriateevidenceisessentialiftheCPAfirmistominimizelegalliability.
A)True
B)False
Answer:
A
Terms:
Acceptableauditrisk
Diff:
Moderate
Objective:
LO8-1
AACSB:
Reflectivethinkingskills
10)A100%auditriskiscompletecertainty.
A)True
B)False
Answer:
B
Terms:
Acceptableauditrisk
Diff:
Moderate
Objective:
LO8-1
AACSB:
Reflectivethinkingskills
LearningObjective8-2
1)Oneofthepurposesofanengagementletteristoavoidmisunderstandingswiththeclient.Thisisimportantfor:
A)
Goodclientrelations
Facilitatinghigh-qualityworkatareasonablecost
Yes
Yes
B)
Goodclientrelations
Facilitatinghigh-qualityworkatareasonablecost
No
No
C)
Goodclientrelations
Facilitatinghigh-qualityworkatareasonablecost
Yes
No
D)
Goodclientrelations
Facilitatinghigh-qualityworkatareasonablecost
No
Yes
Answer:
A
Terms:
Engagementletter
Diff:
Easy
Objective:
LO8-2
AACSB:
Reflectivethinkingskills
2)Theauditorislikelytoaccumulatemoreevidencewhentheauditisforacompany:
A)
Whichhaslargeamountsofdebt
Whichistobesoldinthenearfuture
Yes
Yes
B)
Whichhaslargeamountsofdebt
Whichistobesoldinthenearfuture
No
No
C)
Whichhaslargeamountsofdebt
Whichistobesoldinthenearfuture
Yes
No
D)
Whichhaslargeamountsofdebt
Whichistobesoldinthenearfuture
No
Yes
Answer:
A
Terms:
Auditorsaccumulatemoreevidencewhenauditisforcompany
Diff:
Easy
Objective:
LO8-2
AACSB:
Reflectivethinkingskills
3)Initialauditplanninginvolvesfourmatters.Whichofthefollowingisnotoneofthese?
A)Developanoverallauditstrategy.
B)Requestthatbankbalancesbeconfirmed.
C)Scheduleengagementstaffandauditspecialists.
D)Identifytheclient'sreasonfortheaudit.
Answer:
B
Terms:
Initialauditplanning
Diff:
Easy
Objective:
LO8-2
AACSB:
Reflectivethinkingskills
4)Smith,CPAhasrequestedpermissiontocommunicatewiththepredecessorauditorinordertoreviewcertainworkpapersforhighriskaccountsforanewauditclient.Thenewauditclient'srefusaltoallowthiscommunicationtooccurwouldimpactRodgersdecisionconcerning:
A)theauditor'sabilitytodesignaudittests.
B)possiblescopeexceptionduetolackofaccess.
C)thedesirabilityofacceptingtheprospectiveengagement.
D)violationoftheGAAPrulesconcerningconsistencyandcomparabilityoffinancialinformation.
Answer:
C
Terms:
Newauditclientsrefusaltoallowcommunicationbetweenpredecessorandsuccessorauditors
Diff:
Easy
Objective:
LO8-2
AACSB:
Reflectivethinkingskills
5)Asuccessorauditormayperformwhichofthefollowingforanewauditclient?
A)
Speaktolocalattorneys,banksandotherbusinessesregardingthecompany'sreputation
Speaktothepredecessorauditorsaboutdisagreementstheyhadwithmanagement
Yes
Yes
B)
Speaktolocalattorneys,banksandotherbusinessesregardingthecompany'sreputation
Speaktothepredecessorauditorsaboutdisagreementstheyhadwithmanagement
No
No
C)
Speaktolocalattorneys,banksandotherbusinessesregardingthecompany'sreputation
Speaktothepredecessorauditorsaboutdisagreementstheyhadwithmanagement
Yes
No
D)
Speaktolocalattorneys,banksandotherbusinessesregardingthecompany'sreputation
Speaktothepredecessorauditorsaboutdisagreementstheyhadwithmanagement
No
Yes
Answer:
A
Terms:
Successorauditormayperformcommunicationfornewauditclient
Diff:
Moderate
Objective:
LO8-2
AACSB:
Reflectivethinkingskills
6)Whendealingwithauditrisk:
A)auditriskshouldnotbeafactorwhendeterminingifanewclientshouldbeaccepted.
B)auditswithalowacceptableauditriskgenerallyresultinlowerauditfees.
C)ifmanagementofacompanyhasareputationofintegrity,butisalsoknowntotakeaggressivefinancialrisks,theauditorshouldnotacceptthecompanyasanewclient.
D)iftheauditorconcludesthatacceptableauditriskislow,buttheclientisstillacceptable,theauditormaystillaccepttheengagementbutincreasetheauditfee.
Answer:
D
Terms:
Loweracceptableauditrisk
Diff:
Moderate
Objective:
LO8-2
AACSB:
Reflectivethinkingskills
7)Awrittenunderstandingdetailingwhattheauditorswilldoindeterminingifthefinancialstatementsarefairrepresentationsofthecompany'sfinancialstatementsandwhattheauditorexpectsfromtheclientinperforminganauditwillnormallybeexpressedinthe:
A)managementletterrequestedbytheauditor.
B)engagementletter.
C)AuditPlan.
D)AuditStrategyfortheclient.
Answer:
B
Terms:
Writtenunderstandingdetailingwhatauditorwilldoandwhatauditorexpectsfromclientinperformingaudit
Diff:
Moderate
Objective:
LO8-2
AACSB:
Reflectivethinkingskills
8)Ifanauditorisrequestedtoperformnonauditservicesforapubliccompanyauditclient,whoisresponsibleforagreeingtothoseserviceswiththeauditfirm?
A)Theclient'smanagement
B)Theclient'schiefexecutiveofficer
C)Theclient'schieffinancialofficer
D)Theclient'sauditcommittee
Answer:
D
Terms:
Responsibilityforagreeingnonauditservicesforapubliccompanyauditclient
Diff:
Moderate
Objective:
LO8-2
AACSB:
Reflectivethinkingskills
Topic:
SOX
9)Whichofthefollowingstatementsistrueregardingcommunicationsbetweenpredecessorandsuccessorauditors?
A)Theburdenofinitiatingthecommunicationrestswiththepredecessor.
B)Thepredecessor'sresponsecanbelimitedtostatingthatnoinformationwillbeprovided.
C)Thepredecessorshouldcommunicatewiththesuccessoronlyiftheclientispublic.
D)Thepredecessorauditorofapubliccompanydoesnotneedpermissionfromtheclientbeforecommunicatingwiththesuccessorauditor.
Answer:
B
Terms:
Communicationsbetweenpredecessorandsuccessorauditors
Diff:
Moderate
Objective:
LO8-2
AACSB:
Reflectivethinkingskills
10)Thepurposeofanengagementletteristo:
A)documenttheCPAfirm'sresponsibilitytoexternalusersoftheauditedfinancialstatements.
B)documentthetermsoftheengagement.
C)