Aut Q

AUT Quiz #1 2nd Sem 2021-2022
September 20, 2021
1. The single feature that most clearly distinguishes auditing, attestation, and assurance is
a. Type of service.
b. Training required to perform the service.
c. Scope of services.
d. CPA’s approach to the service.
2. The primary goal of the CPA in performing the attest function is to

a. Detect fraud.
b. Examine individual transactions so that the auditor may certify as to their
validity.
c. Determine whether the client's assertions are fairly stated.
d. Assure the consistent application of correct accounting
procedures.
3. Internal auditing often extends beyond examinations leading to the expression of an opinion
on the fairness of financial presentation and includes audits of efficiency, effectiveness,
and
a. Internal control.
b. Evaluation.
c. Accuracy.
d. Compliance.
4. Which of the following best describes the operational audit?

a. It requires the constant review by internal auditors of the administrative controls as they
relate to operations of the company.
b. It concentrates on implementing financial and accounting control in a newly organized
company.
c. It attempts and is designed to verify the fair presentation of a company's results of
operations.
d. It concentrates on seeking out aspects of operations in which waste would be reduced by
the introduction of controls.
5. The auditor's judgment concerning the overall fairness of the presentation of financial
position, results of operations, and changes in financial position is applied within the
framework of
a. Generally accepted accounting principles.
b. Generally accepted auditing standards.
c. Internal control.
d. Information systems control.
6. Which of the following is not considered an assertion as formulated by the Auditing
Standards Board?
a. Valuation or allocation.
b. Mathematical accuracy.
c. Rights and obligations.
d. Presentation and disclosure.
7. Which of the following is not a distinguishing feature of

risk-based auditing?
a. Identifying areas posing the highest risk of financial statement errors.
b. Analysis of internal control.
c. Collecting and evaluating evidence.
d. Concentrating audit resources in those areas presenting the highest risk of financial
statement errors.
8. To maximize independence, the director of internal auditing should report to

the
a. Audit committee.
b. Controller.
c. Chief financial officer.
d. Director of information systems.
9. The auditor communicates the results of his or her work

through the medium of the
a. Engagement letter.
b. Management letter.
c. Audit report.
d. Financial statements.
10. The best description of the scope of internal auditing is that it

encompasses
a. Primarily operational auditing.
b. Both financial and operational auditing.
c. Primarily the safeguarding of assets and verifying the existence of such assets.
d. Primarily financial auditing.
11. A typical objective of an operational audit is to determine \whether an entity's

a. Financial statements fairly present financial position and cash flows.
b. Financial statements present fairly the results of operations.
c. Financial statements fairly present financial position, results of operations, and cash
flows.
d. Specific operating units are functioning efficiently and effectively.
12. The scope and nature of an auditor's contractual obligation to a client is ordinarily set
forth in the
a. Scope paragraph of the auditor’s report.
b. Opinion paragraph of the auditor’s report.
b. Management letter.
c. Engagement letter.
13. The four major steps in conducting an audit are:

a. Testing internal controls
b. Audit report
c. Planning
d. Testing transactions and balances
The proper sequence in applying the above steps is:

a. cadb
b. cdab
c. bcda
d. adcb
14. Which of the following statements is not true regarding the competence of audit evidence?
a. Relevance is enhanced by an effective information system.
b. To be competent, evidence must be both valid and relevant.
c. Validity is related to the quality of the client’s information system.
d. Relevance must always relate to audit objectives.
15. As used in auditing, which of the following statements best describes "assertions"?
a. Assertions are the representations of management as to the reliability of the information
system.
b. Assertions are the auditor's findings to be communicated in the audit report.
c. Assertions are the representations of management as to the fairness of the financial
statements.
d. Assertions are found only in the footnotes to the financial statements.

Aut Q

Uploaded by

Copyright:

Available Formats

Aut Q

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Aut Q

Uploaded by

Copyright:

Available Formats

AUT Quiz #1 2nd Sem 2021-2022

September 20, 2021

2. The primary goal of the CPA in performing the attest function is to

4. Which of the following best describes the operational audit?

7. Which of the following is not a distinguishing feature of

8. To maximize independence, the director of internal auditing should report to

9. The auditor communicates the results of his or her work

10. The best description of the scope of internal auditing is that it

11. A typical objective of an operational audit is to determine \whether an entity's

13. The four major steps in conducting an audit are:

The proper sequence in applying the above steps is:

You might also like