ACCT444 Week 3 Quiz Latest 2017 (All are correct)

QuestionQuestion 13 / 3 pts(TCO 6) Physical examination is the inspection or count by the auditor of items such ascash or inventory only.cash, inventory, canceled checks, and sales documents.cash, inventory, canceled checks, and tangible fixed assets.cash, inventory, securities, notes receivable, and tangible fixed assets.Question 20 / 3 pts(TCO 6) Analytical procedures arediagnostic tests of financial information that may not be classified as evidential matter.calculations of financial information made by a computer.substantive tests of financial information made by a study and comparison of relationships among data.statistical tests of financial information designed to identify areas requiring intensive investigation.Question 33 / 3 pts(TCO 6) The Auditing Standards Board has concluded that analytical procedures are so important that they are required duringplanning and testing phases.planning and completion phases.testing and completion phases.planning, testing, and completion phases.Question 43 / 3 pts(TCO 6) Traditionally, confirmations are used to verifyindividual transactions between organizations, such as sales transactions.bank balances and accounts receivables.fixed asset additions.All of the aboveQuestion 53 / 3 pts(TCO 7) Analytical procedures used in planning an audit should focus on identifyingmaterial weaknesses of internal control.the predictability of financial data from individual transactions.the various assertions that are embodied in the financial statements.areas that may represent specific risks relevant to the audit.Question 60 / 3 pts(TCO 7) When inherent risk is high, there will need to bemore evidence accumulated.more experienced staff assigned to the work.either a or b, but not both.both a and b.Question 73 / 3 pts(TCO 7) A successor auditor may perform which of the following for a new audit client?Speak to local attorneys, banks, and other businesses regarding the company's reputationSpeak to the predecessor auditor about disagreements they had with managementInterview client personnel to better understand the business and associated risksAll of the aboveQuestion 83 / 3 pts(TCO 8) The preliminary judgment about materiality is the _____ amount by which the auditor believes the statements could be misstated and still not affect the decisions of reasonable users.minimummaximummean averagemedian averageQuestion 90 / 3 pts(TCO 8) In setting materiality guidelines for current assets, the two standard setters, FASB and the AICPA, provide the following guidelines to practitionersBoth agree that materiality should be set at an amount greater than 10% of current assets.FASB's guideline is greater than 10%, but the AICPA's is greater than 5%.Both agree that it should be greater than 5%.No specific materiality guidelines are provided by either of them.Question 100 / 3 pts(TCO 8) Which of the following elements ultimately determines the specific auditing procedures that are necessary in the circumstances to afford a reasonable basis for an opinion?Inherent riskMaterialityAuditor judgmentReasonable assurance