ACC 403 AUDITING MIDTERM EXAM PART 2


Question Description:

$28

Midterm Exam Part 2

  • Question 1

5 out of 5 points

To succeed in an action against the auditor, the client must be able to show that:
  • Question 2

5 out of 5 points

The principal issue to be resolved in cases involving alleged negligence is usually:
  • Question 3

0 out of 5 points

The standard of due care to which the auditor is expected to adhere to in the performance of the audit is referred to as the:
  • Question 4

5 out of 5 points

The expectation gap:
  • Question 5

5 out of 5 points

In the auditing environment, failure to meet auditing standards is often:
  • Question 6

5 out of 5 points

The preferred defense in third party suits is:
  • Question 7

5 out of 5 points

When an auditor believes that an illegal act may have occurred, the auditor should first:
  • Question 8

5 out of 5 points

The concept of reasonable assurance indicates that the auditor is:
  • Question 9

5 out of 5 points

Which of the following is the auditor least likely to do when aware of an illegal act?
  • Question 10

5 out of 5 points

Which of the following statements is the most correct regarding errors and fraud?
  • Question 11

5 out of 5 points

The essence of the attest function is to:
  • Question 12

5 out of 5 points

If a short-term note payable is included in the accounts payable balance on the financial statement, there is a violation of the:
  • Question 13

5 out of 5 points

An example of an external document that provides reliable information for the auditor is:
  • Question 14

5 out of 5 points

Which of the following is not a characteristic of the reliability of evidence?
  • Question 15

5 out of 5 points

The two characteristics of the appropriateness of evidence are:
  • Question 16

5 out of 5 points

Which of the following is not one of the four decisions about what evidence to gather and how much of it to accumulate?
  • Question 17

5 out of 5 points

Audit documentation:
  • Question 18

5 out of 5 points

Evidence is generally considered appropriate when:
  • Question 19

0 out of 5 points

When the auditor uses tracing as an audit procedure for tests of transactions she is primarily concerned with which audit objective?
  • Question 20

5 out of 5 points

Related party:
  • Question 21

5 out of 5 points

Which of the following best describes the corporate minutes of an entity?
  • Question 22

5 out of 5 points

A written understanding detailing what the auditors will do in determining if the financial statements are fair representations of the company’s financial statements and what the auditor expects from the client in performing an audit will normally be expressed in the:
  • Question 23

5 out of 5 points

The preliminary audit strategy:
  • Question 24

5 out of 5 points

An official record of meetings of the board of directors and stockholders is included in the corporate:
  • Question 25

5 out of 5 points

Most auditors assess inherent risk as high for related parties and related-party transactions because:

Answer

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