ACCT444 Week 2 Quiz Latest 2017 (Perfect Answer)

QuestionQuestion 13 / 3 pts(TCO 4) In connection with the audit of financial statements, an independent auditor could be responsible for failure to detect a material fraud ifstatistical sampling techniques were not used on the audit engagement.the auditor planned the audit in a negligent manner.accountants performing important parts of the work failed to discover a close relationship between the treasurer and the cashier.the fraud was perpetrated by one employee who circumvented the existing internal controls.Question 23 / 3 pts(TCO 4) "Absence of reasonable care that can be expected of a person is a set of circumstances" definespecuniary negligence.gross negligence.extreme negligence.ordinary negligence.Question 33 / 3 pts(TCO 4) The prudent person concept establishes thatthe CPA firm is not expected to make only perfect judgments.an audit in accordance with GAAS is subject to limitations and cannot be relied upon for complete assurance that all errors and irregularities will be found.the courts do not require that the auditor become the insurer or guarantor of the accuracy of the statements.all three of the above are true.Question 43 / 3 pts(TCO 4) Tort actions against CPAs are more common than breach of contract actions becausethere are more torts than contracts.the burden of proof is on the auditor rather than on the person suing.the person suing need prove only negligence.the amounts recoverable are normally larger.Question 53 / 3 pts(TCO 4) If the auditor believes that the financial statements are not fairly stated or is unable to reach a conclusion because of insufficient evidence, the auditorshould withdraw from the engagement.should request an increase in audit fees so that more resources can be used to conduct the audit.has the responsibility of notifying financial statement users through the auditor’s report.should notify regulators of the circumstances.Question 63 / 3 pts(TCO 3) Which of the following statements is most correct regarding errors and fraud?An error is unintentional, whereas fraud is intentional.Frauds occur more often than errors in financial statements.Errors are always fraud and frauds are always errors.Auditors have more responsibility for finding fraud than errors.Question 73 / 3 pts(TCO 3) In the fraud triangle, fraudulent financial reporting and misappropriation of assetsshare little in common.share most of the same risk factors.share the same three conditions.share most of the same conditions.Question 83 / 3 pts(TCO 3) Because of the risk of material misstatements due to fraud, an audit of financial statements in accordance with generally accepted auditing standards should be performed with an attitude ofobjective judgment.impartial conservatism.independent integrity.professional skepticism.Question 93 / 3 pts(TCO 3) Which of the following statements describes circumstances that underlie employee incentives to misappropriate assets?Dissatisfied employees may steal from a sense of entitlement.Weak internal controls encourage employees to take chances.If management cheats customers and gets away with it, then employees believe they can do the same to the company.Each of the above describes circumstances underlying employee incentives to misappropriate assets.Question 103 / 3 pts(TCO 3) Auditors may identify conclusions during fieldwork that change or support a judgment about the initial assessment of fraud risk. Which of the following conditions should alert an auditor about the initial assessment?Missing or conflicting evidenceDiscrepancies in the accounting recordsUnusual relationships between the auditor and managementAll of the above