Solved by verified expert :WK 6 quiz chapt 9
Question 1
The
scope paragraph of the standard unqualified auditor’s report states that
“… the standards require that we plan and perform the audit to obtain
________ assurance about whether the financial statements are free of material
misstatement.” What type of assurance is given?
Question 2
When
auditors allocate the preliminary judgment about materiality to account
balances, the materiality allocated to any given account balance is referred to
as:
Question 3
To what
extent do auditors typically rely on internal controls of their public company
clients?
Question 4
As the risk of material
misstatement increases, detection risk should:
Question 5
As the acceptable level of
detection risk increases, an auditor may change the:
Question 6
Inherent risk is ________ related
to detection risk and ________ related to the amount of audit evidence.
Question 7
Inherent risk is often high for
an account such as:
.
Question 8
When dealing with audit risk:
Question 9
Auditors are ________ to document
the known and likely misstatements in the financial statements under audit.
Question 10 2 out of
2 points
Amounts involving fraud are
usually considered ________ important than unintentional errors of equal dollar
amounts.
Question 11
When the auditor is attempting to
determine the extent to which external users rely on a client’s financial
statements, they may consider several factors except for:
Answer
Question 12 2 out of
2 points
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:
Question 13 2 out of
2 points
If an auditor believes the chance
of financial failure is high and there is a corresponding increase in business
risk for the auditor, acceptable audit risk would likely:
Question 14 2 out of
2 points
Inherent risk and control risk:
Question 15 2 out of
2 points
If it is probable that the
judgment of a reasonable person will be changed or influenced by the omission
or misstatement of information, then that information is, by definition of FASB
Statement No. 2:
