哈商大auditing期末范围.docx

a.Which of the following would be a non-assurance engagement?A. A financial statement audit engagementB. A financial statement review engagementC. A direct reporting engagementD. A consulting engagement b.Which of the following best describes the difference between internal and external auditors? AA. External auditors prepare reports that reduce information risk.B. External auditors do not have threats to their independence, while internal auditors face pressureto compromise their independence because of the nature of their relationship with the companybeing audited.C. Only internal auditors may perform operational audits.D. Only external auditors may perform financial audits.f.Independent auditors of financial statements perform audits that reduce and control what?A. Management biasB. The information risk faced by investorsC. Weak accounting systemsD. Quality reviews performed by other public accounting firms How does an auditor use professional skepticism in an external audit? BA. Professional skepticism assumes that management is honest; therefore management representations are sufficient appropriate evidence.B. Professional skepticism recognizes that circumstances may exist that cause the financial statements to be materially misstated.C. Professional skepticism increases the risk of using faulty assumptions in determining the nature, timing, and extent of the audit procedures.D. Professional skepticism is used to prove managements honesty and integrity concerning the financial statements.d.Which of the following best describes the threat to independence if an auditor owns a material amount of shares of an audit client? CA. An advocacy threatB. A familiarity threatC. A self-interest threatD. A self-review threate.An auditors independence could be considered impaired if the auditor AA. Depends on a high level of fees from one audit client.B. Owns common stock before the company became an audit client.C. Removes the member of the assurance team from the audit.D. Withdraws from the audit engagement.g.Which of the following would be an assurance engagement?1)Advising on the tax effects of a proposed transaction2)Designing an internal control system for an audit client3)Preparing the financial records and financial statements for a client4)Conducting an external auditQuestion 1. The following are four independent statements concerning certain auditing, legal, and ethical issues:a. In the course of providing professional services to a client, an auditor becomes aware that the client has committed a non-criminal breach of one or more governmental regulations. Sam reports the matter to the regulatory authorities.b. A CA, is a partner in a professional accounting firm. The CGA acted as acheque signatory for a client for whom the firm provided review services.c. A company is planning a public offering of common shares to raise new capital. Because the company is short of cash, and auditor, agrees to perform the audit at a very reasonable fee of $50,000, with the understanding that he will receive a $25,000bonus payment if the public offering is successfully completed.d. In an effort to expand the accounting practice, an auditor places an advertisement based on an independent survey that was done thanking the people for voting the firm as number 1 in the region.Required : For each case, state whether or not the auditor has violated the IFAC Code of Ethics and explain your reasoning.a.Which of the following best describes the auditors responsibility to detect errors or fraud in order to achieve the overall objective of an audit? DA. The responsibility only exists when the error is unintentional.B. The responsibility is greater when the misstatement arose through fraud than if it arose through unintentional error.C. The responsibility is less when the misstatement arose through fraud than if it arose through unintentional error.D. The responsibility is the same whether the misstatement arose through fraud or unintentional error.b.One of the specific audit procedures a CGA plans to perform is to examine invoices paid after year-end and ensure that the accounts payable is not understated. What is the primary management assertion being tested? CA. ConfirmationB. ExistenceC. CompletenessD. Inspectionc.If an auditor obtains evidence confirming that a misstatement exists, he or she shouldcommunicate the misstatement to the appropriate level of management and to the audit committee, if applicable. Which of the following information should be communicated? CA. Misstatements resulting from material error, and fraud.B. Misstatements resulting from material error, fraud and illegal acts.C. Misstatements resulting from all errors, fraud and illegal acts.D. Misstatements resulting from fraud and illegal acts.d.Which of the following is true concerning the use of analysis in auditing? 判断A. The use of analysis is optional at all stages of an audit.B. The use of analysis as a substantive procedure is mandatory.C. The use of analysis in the completion stage is optional.D. The use of analysis as a substantive procedure is optional.e.Which of the following is most likely to enhance the sufficiency of evidence? A. When it is obtained through an independent provider.B. When the amount of evidence is evaluated by the auditor.C. When it has a high degree of objectivity.D. When it is obtained through the auditors direct personal knowledge.f.Which assertion is the auditor most likely seeking evidence for, if the auditor is using the following procedures? CEnquire with management and review all loan documents, bond indentures, and all debt covenants to determine if receivables have been pledged as collateral.A. Completeness B. ValuationC. OwnershipD. Complianceg.Which of the following procedures is tracing?1)1)Selecting a journal entry for a purchase, and then checking to see if there is a corresponding purchase invoice2)Scanning through the cash receipts journal for unusual amounts3)Selecting a journal entry for a purchase, then verifying that there is a receiving document4)Selecting a cancelled cheque and verifying that it was recorded in the cash disbursements journalh.Which of the following procedures would obtain evidence of existence?1)Scanning 2)Tracing 3)Vouching 4)Computationi.Which of the following items would most likely be found in an auditors permanent file papers?1)Excerpts of shareholders and directors meetings2)Staff assignments for the current audit3)Preliminary analytical procedure notesjWhich of the following would be the most reliable documents in terms of evidence?1)Shipping documents2)Receiving reports3)Cancelled cheques4)Sales summaries2. Question The purpose of substantive testing is to verify the assertions made by management in the financial statements. Consider the following unrelated audit tests, which a CGA performed for the audit of the financial statements of a client with a fiscal year-end of December 31, 20XX. For each of the six audit procedures listed below, identify the primary management assertion being tested, name the specific audit procedure being used, and state the quality of the audit evidence obtained (high, moderate, or low), explaining why the evidence is the quality level you specify. Organize your answer with these headings:Management assertion Audit procedure Quality of audit evidencea. (3 marks)Sent positive confirmation requests to a sample of customers with unpaid balances at December 31, 20XX.b. (3 marks)Performed test counts of goods on hand during the companys normal physical inventory taking on December 31, 20XX.c. (3 marks)Requested statements as of November 30, 20XX from a large sample of vendors with whom the client did business during 20XX.d. (3 marks)The auditor counted cash on hand at December 31, 20XX.e. (3 marks)Recalculated amortization of copyrights, patents, and other intangibles as at December 31, 20XX.F selecting, vouching a random sample of payables to the vendors invoices and the clients receiving reports, and recalculating the amounts in the sample.（1）The auditor uses computer software to select a sample of vendors account payable balances with debit balances and compares amounts and computations to cash disbursements and vendor credit memos. （2）The auditor uses computer software to test perpetual inventory records for items that have not been used in production in the last three months. The client states that these items have been determined to be obsolete and have been written down. The auditor then checks the journal entries to support the clients statements.(3) The auditor tests cash remittance advices to see that allowances and discounts are appropriate and that all receipts are posted to the correct customer accounts in the right amounts and reviews the documentation supporting unusual discounts and allowances.(4) The auditor watches the client take physical inventory. The auditor also reviews a letter received from a public warehouse confirming the amount of the clients inventory on hand at the year end. The auditor also checks the clients FIFO valuation of the inventory using the auditors generalized audit software program. L4i.In which cycle would you be auditing the purchases journal? AA. Acquisition and expenditure cycleB. Production and payroll cycleC. Revenue and collections cycleD. Finance and investment cyclea.Which one of the following methods would an auditor use to obtain an understanding of a clients business? DA. Test of controlsB. ConfirmationC. SamplingD. Analysisb.Which of the following risks can the auditor control? 改造A. Control risk and audit riskB. Inherent risk and control riskC. Audit risk and detection riskD. Control risk and detection riskd.If LAM = $600, LM = $250, IM = $150, and FPM = $50, how much is the MPM?A. $ 350 B. $ 450C. $ 650D. $ 1,050e.In planning an audit, which of the following statements is correct? 判断改造A. Both audit risk and inherent risk are constant throughout the audit.B. Both inherent risk and control risk should be assessed and will likely vary for different assertions and account balances or class of transactions.C. Both inherent risk and control risk will be constant throughout the audit.D. Inherent will be constant throughout the audit, but audit risk will vary for different assertions and accounts or classes of transactions.f.If the auditor decreases the amount of error considered material, how would this affect the various kinds of risk used in the audit risk model? AA. The assessed level of inherent risk and control risk would increase.B. Detection risk would increase.C. Audit risk would increase.D. Inherent risk would increase but control risk would be unchanged.h.An auditor initially assesses control risk at a low level. After performing tests of controls, the auditor decides to increase the assessed level of control risk from low to high. What would the auditor most likely do to achieve the audit risk level initially planned for?A. Decrease substantive testingB. Decrease detection riskC. Increase inherent riskD. Decrease inherent risk i.Which of the following would be described as “the risk of a material misstatement occurring in the first place”?1)Audit risk 2)Business risk for the audit firm3)Business risk for the client 4)Inherent riskl.Which of the following assertions would be the least important for the audit of inventory?1)Existence 2)Valuation 3)Compliance 4)Ownership3. QuestionAn auditor is examining the financial statements of a local credit union, which has a large number of depositors in the community and is experiencing some financial difficulties. Because of the nature of the client, he wants the level of audit risk to be about 3%. Based on his past experience with the company andthe industry, he believes that the inherent risk of a material error in the accounts is about 45%. Moreover, he has assessed the risk that internal controls will fail to detect such an error at 35%. He has also performed some analytical review procedures of an attention-directing nature in an effort to better understand the busines