Advanced Auditing

Which of the following is a primary responsibility of an audit partner?

• • A. Perform the audit procedures assigned to them

• • B. Prepare adequate and appropriate documentation of completed work

• • C. Ensure the audit is properly planned and conducted in accordance with applicable auditing standards

• • D. Assist in the development of the audit plan

What are the three types of audit tests?

• • A. Risk Assessment Procedures, Tests of Controls, Substantive Procedures

• • B. Analytical Procedures, Tests of Details, Walkthrough

• • C. Inspection, Inquiry, Observation

• • D. Substantive Tests, Dual-Purpose Tests, Analytical Tests

Which of the following best describes 'reasonable assurance' in the context of an audit?

• • A. Absolute assurance that the financial statements are free of material misstatement

• • B. High level of assurance that the financial statements are free of material misstatement

• • C. Minimal assurance that the financial statements are free of material misstatement

• • D. Moderate assurance that the financial statements are free of material misstatement

Which statement is true about substantive procedures?

• • A. They are directed toward evaluating the effectiveness of internal controls

• • B. They involve obtaining an understanding of the entity and its environment

• • C. They detect material misstatements in a transaction class, account balance, and disclosure component of the financial statements

• • D. They are primarily used for testing controls

Which of the following is NOT a component of the professional conduct expected from auditors?

• Independence

• Integrity

• Confidentiality

• Flexibility

An example of an internal control test is:

• • Analytical procedures

• Walkthrough

• • Substantive procedures

• • Dual-purpose tests

The audit team member responsible for supervising and reviewing the work of associates is the:

• Partner

• Manager

• Senior/In-Charge

• Associate/Staff

Which of the following standards are part of the Generally Accepted Auditing Standards (GAAS)?

• • General Standards, Standards of Fieldwork, Standards of Reporting

• • Ethical Standards, Independence Standards, Quality Control Standards

• • Financial Standards, Operational Standards, Compliance Standards

• • Risk Assessment Standards, Control Standards, Reporting Standards

In an audit, what is the primary objective of risk assessment procedures?

• To detect material misstatements in the financial statements

• • To evaluate the effectiveness of internal controls

• • To obtain an understanding of the entity and its environment

• • To ensure compliance with regulatory standards

Which type of audit test involves evaluating the design and operating effectiveness of internal controls?

• Substantive Procedures

• • Dual-Purpose Tests

• • Tests of Controls

• Analytical Procedures