Đề 1

Independent auditors of financial statements perform audits that reduce a. Timeliness of financial statements b. Information risk faced by investors c. Complexity of financial statements d. Business risk faced by investors

Which of the following would not be considered an inherent limitation of the potential effectiveness of an entity's internal control structure? Incompatible duties. Management override. Mistakes in judgment. Collusion among employees.

Operational audits generally have been conducted by internal auditors and governmental audit agencies but may be performed by certified public accountants. A primary purpose of an operational audit is to provide: Aid to the independent auditor, who is conducting the audit e the financial statements A measure of management performance in meeting organizational goals A means of assurance that internal accounting controls are functioning as planned The results of internal examinations of financial and accounting matters to a company's top-level management

The date of the CPA's opinion on the financial statements of the client should be the date of the Submission of the report to the client. Completion of all important audit procedures. Finalization of the terms of the audit engagement. Closing of the client's books.

The auditor's responsibility regarding material misstatements caused by fraud is Less than the auditor's responsibility regarding material misstatements caused by error Greater than the auditor's responsibility regarding material misstatements caused by error Either less than or greater than the auditor's responsibility regarding material misstatements caused by error, depending on the circumstances The same as the auditor's responsibility regarding material misstatements caused by error

An auditor strives to achieve independence in appearance to Become independent in fact. Comply with the auditing standards related to audit performance. Maintain public confidence in the profession. Maintain an unbiased mental attitude.

Compliance auditing often extends beyond audits leading to the expression of opinions on the fairness of financial presentation and includes audits of efficiency, economy, effectiveness, as well as Evaluation. Internal control. Accuracy. Adherence to specific rules or procedures.

In a financial statement audit. the auditor obtains a reasonable level of assurance about whether the financial statements are free of material misstatement in order to express an opinion. In order to obtain reasonable assurance, the auditor must Have prior experience in the industry in which the audit client operates Obtain sufficient audit evidence Test controls around significant transaction cycles Examine all documents available that support the financial statements

Cash receipts from sales on account have been misappropriated. Which of the following acts will conceal this embezzlement and be least likely to be detected by the auditor? Overstating the accounts receivable control account Understating the cash receipts journal Overstating the accounts receivable subsidiary records Understating the sales journal

An auditor discovers that a client's accounts receivable turnover is substantially lower for the current year than for the prior year. This trend may indicate that a. employees have stolen inventory just before year-end. b. an employee has been lapping receivables in both years. c. the client recently tightened its credit-granting policies. d. fictitious credit sales have been recorded during the year.