auditing

An examination and evaluation of a firm's or individual's financial records to derive evidence that can be used in a court of law or legal proceeding is referred to as ...

• compliance audit

• forensic audit

... is a comprehensive review of an organization's adherence to regulatory guidelines.

• Compliance audit

• Forensic audit

Auditor unique role is for the following expertise except for

• A. Determining proper audit procedure

• B. Provide relevant information on economic event

• C. Deciding the number and types of items to test evidence

• D. Evaluating audit results

Which of the following describe the true relationship between auditor, client and external users?

• A. Management provides capital to external users and auditor is hired to provide report relied upon by users for assurance.

• B. External users rely on auditor’s report assurance to reduce information risk provided by management

• C. Auditor ensure report are based on management decision on the economic event to be presented to external users

• D. Management and auditor provide financial statement to external users

The distinction between the role of auditor and accountant can be best describe as

• A. Accountant provide financial information for decision making while auditor determine whether the information properly reflects the economic events of the accounting period.

• B. Accountant must have a thorough understanding of the principles and rules to prepare financial statement while auditor rely on the theory of evidence to verify the financial statement.

• C. Auditor is responsible for detection and prevention of error and frauds while accountant ensure the credibility and quality dimension of financial statement.

• D. Auditor must possess expertise in the accumulation and interpretation of audit evidence while accountant need to be expert in understanding the principles and rules.

The internal auditor’s independence is most likely to be compromised when the internal audit department is responsible directly to audit committee of the board of directors.

• TRUE

• FALSE

Internal and external auditor performed a different methodology in their audits.

• TRUE

• FALSE

At the planning state, the auditor considered materiality at the financial statement level only

• TRUE

• FALSE

Three major differences between operational and financial audit are the purpose of audit, distribution of report and inclusion of non-financial areas in operational audit.

• TRUE

• FALSE

Federal and state government auditors performed different type of operational auditing.

• TRUE

• FALSE